The Clinton Administration

Democratic President Bill Clinton served two terms from 1993 to 2001, during a period of great economic growth in the United States.

Learning Objective

Examine the key events during the Clinton administration

Key Points

President Clinton was the first Democratic president to serve two terms since Franklin Delano Roosevelt and the first president since Roosevelt to have not served in the military.
The Clinton Administration focused mainly on the economy—specifically on raising taxes on the wealthiest 1.2%, reducing welfare, lowering taxes on low income families, offering tax breaks to small businesses, and promoting free trade.
During the Clinton years, the economy experienced its longest economic growth in history. During the last four years of the Clinton administration, the federal budget had surpluses for the first time since 1969.
Clinton took office fewer than two years after the fall of the Soviet Union, and the administration's foreign policy addressed conflicts in Somalia, Rwanda, Bosnia and Herzegovina, Kosovo, and Haiti through militarism and economic exploitation.
The Clinton presidency saw the passage and signing of the Iraq Liberation Act of 1998, which was a bipartisan measure expressing support for regime change in Iraq.
Clinton considered himself a "New Democrat" and was a founding member of the Democratic Leadership Council, a centrist group of Democrats who promoted moderate policies.
Clinton left office with the highest end of office approval rating of any president since World War II, but he was also the first U.S. president to be impeached since Andrew Johnson.

Terms

NAFTA
An agreement signed by the governments of Canada, Mexico, and the United States, creating a trilateral trade bloc in North America; as of 2010, the trade bloc was the largest in the world in terms of the combined Gross Domestic Product (GDP) of its members.
Democratic Leadership Council
A non-profit 501(c)(4) corporation founded in 1985 that, upon its formation, argued the United States Democratic Party should shift away from the leftward turn it took in the late 1960s, 1970s, and 1980s; the corporation hails President Bill Clinton as proof of the viability of third way politicians.
Iraq Liberation Act of 1998
A United States Congressional statement of policy calling for regime change in Iraq; it was signed into law by President Bill Clinton and states that it is the policy of the United States to support democratic movements within Iraq; it was cited in October 2002 to argue for the authorization of military force against the Iraqi government.

Full Text

Overview

William Jefferson "Bill" Clinton served as President of the United States from January 20, 1993 to January 20, 2001. Clinton was the first Democratic president since Franklin D. Roosevelt to win a second full term; he was also the first president since Roosevelt and the last until current President Barack Obama to have not served in the military in any capacity.

Domestic Policies

The administration faced political opposition in 1994 when Republicans took control of both houses of Congress, but Clinton was reelected in 1996 after a failed attempt at health care reform. His presidency saw the passage of welfare reform in the Personal Responsibility and Work Opportunity Act, which ended Aid to Families with Dependent Children and reduced the number of welfare programs. This act received support from both political parties. He also signed the reversal of the Glass-Steagall Act, which was designed to prevent financial institutions from getting too big to fail. In addition, he signed the Commodity Futures Modernization Act, which legalized over-the-counter derivatives. Clinton saw the escalation of the War on Drugs, prompting a swell in the prison population from 1.4 to 2 million.

While many welfare programs were reduced, various measures were also introduced to improve the effectiveness of the social safety net, including an increase in the number of child care places, a significant expansion of the Earned Income Tax Credit (EITC) program, the introduction of new programs such as the State Children's Health Insurance Program (SCHIP), and a child tax credit.

The Economy

Clinton's presidency included a great period of economic growth in America's history. In proposing a plan to cut the deficit, Clinton submitted a budget that would cut the deficit by $500 billion over five years by reducing $255 billion of spending and raising taxes on the wealthiest 1.2% of Americans. Clinton supported the North American Free Trade Agreement (NAFTA), which he signed into law in 1994. The three-nation NAFTA had been signed by previous President George H. W. Bush during December of 1992, pending its ratification by the legislatures of the three countries. Clinton did not alter the original agreement; however, he complemented it with the North American Agreement on Environmental Cooperation and the North American Agreement on Labor Cooperation, making NAFTA the first "green" trade treaty and the first trade treaty concerned with each country's labor laws, albeit with very weak sanctions.

Social Issues

Socially, the administration began with efforts by Clinton to allow gays and lesbians to serve openly in the military, which culminated in a compromise known as "Don't ask, don't tell," theoretically allowing gays and lesbians to serve in the military if they did not disclose their sexual orientation (the policy was later repealed in 2010). However, Clinton signed the Defense of Marriage Act, considered by many to be a blow to the LGBT rights movement.

International Policies

Clinton took office fewer than two years after the fall of the Soviet Union, and the administration's foreign policy addressed conflicts in Somalia, Rwanda, Bosnia and Herzegovina, Kosovo, and Haiti through militarism and economic exploitation. Clinton oversaw the signing of the 1993 Oslo Accords between the government of Israel and the Palestine Liberation Organization in Washington, D.C., which aimed at establishing peace between the warring nations by granting limited self-government of Palestinians in parts of the West Bank and Gaza Strip. The Clinton presidency also saw the passage and signing of the Iraq Liberation Act of 1998, which was a bipartisan measure expressing support for regime change in Iraq. On three separate occasions—in 1996, 1998, and 2000—the administration unsuccessfully attempted to capture or assassinate Osama Bin Laden, who was eventually killed by U.S. special operations forces in 2011.

The Signing of the Oslo Accords, 1993

Clinton, Yitzhak Rabin and Yasser Arafat during the Oslo Accords on September 13, 1993.

Clinton considered himself a "New Democrat" and was a founding member of the Democratic Leadership Council, a centrist group of Democrats who promoted moderate policies. Clinton left office with the highest end of office approval rating of any president since World War II, but he was also the first U.S. president to be impeached since Andrew Johnson as a result of the Lewinsky scandal—though, like Johnson, he was acquitted by the Senate.

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