Lesson 4: A Changing World

Lesson Focus

As the U.S. faced a severe recession, political gridlock between President Bush and Congress stalled solutions for the economy, education, and public health. This lesson explores the domestic challenges that defined the early 1990s.

People to Know

George Bush, Bill Clinton

Learning Objectives

• Discuss why the President and Congress clashed, leading to political gridlock and inaction on key national issues.
• Identify the major economic problems, like the recession, federal deficits, and unemployment, that the nation faced in the early 1990s.

Because President George H.W. Bush, a Republican, faced a Congress controlled by Democrats, their agendas clashed. The President vetoed congressional bills, while Congress blocked his proposals, leading to government gridlock over the economy, the deficit, and education. This stalemate in the early 1990s prevented either side from effectively governing, causing public approval for both President Bush and Congress to drop sharply and leaving the nation’s domestic problems unsolved.

As the national debt soared past $300 billion, President Bush was forced to act. He negotiated with congressional leaders in 1990 and agreed to raise taxes on items like gasoline and tobacco, breaking his famous "no new taxes" campaign pledge. This reversal angered conservative Republicans and the public. Note that this made the President appear indecisive on domestic policy and significantly weakened his political support among his own party base.

High consumer, corporate, and government debt from the 1980s, plus rising oil prices, pushed the economy into a deep recession. Consumers and businesses had to pay off old debts instead of spending or investing, leading to bank failures and mass layoffs. Consequently, millions of workers became unemployed or underemployed in the early 1990s. This economic anxiety fueled pessimism and social unrest, including the 1992 Los Angeles riots after a controversial court verdict.

The persistent recession and government gridlock created widespread public anger toward Washington "insiders." This frustration led voters to turn against incumbents in the 1992 election. The controversial Senate confirmation hearings for Clarence Thomas, featuring testimony from Anita Hill, inspired a record number of women to run for office as political "outsiders." This powerful demand for change created a major opening for challengers to the established political order.

With the recession dominating the 1992 election, voters sought a leader focused on domestic issues. Arkansas Governor Bill Clinton promised to revive the economy, appealing to frustrated middle-class voters. He defeated President Bush, whose support was weakened by a primary challenge from Pat Buchanan and an independent run by H. Ross Perot. The election brought historic change to Congress, with voters electing a record number of women and minority candidates.

As the Cold War ended, democratic movements worldwide looked to American ideals for inspiration. Activists from Czechoslovakia to China quoted the Declaration of Independence and Abraham Lincoln. In South Africa, Nelson Mandela cited American principles in his long struggle to end apartheid. Pay special attention to how the core concept of "government of the people, by the people, for the people" proved to be a powerful and enduring force for freedom globally.