{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

img067 - I H.i ‘I 136 Palitic by Other ‘ l mid-October...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: I H .i ‘I ! 136 Palitic: by Other ‘ l mid-October, when Treasury Secretary James Baker threatened ' allow the dollar to resume its fall unless Germany cut its inte rates. Investors feared that a further decline in the value of the (1 la: would prompt foreigners to abandon the American stock . bond markets. These fears sparked the stock market collapse ’ October 19, 1987. In the wake of the crash, both the administration and Congr came under increased pressure to reduce the budget deficit. H ever, the White House remained firmly opposed to significant increases or cuts in military spending, and congressional Dem rats opposed any substantial cuts in domestic spending. Negotia tions between the White House and Congress following the c thus produced little more than token deficit reductions. As discussed above, the Bush administration engaged in a p '- tracted struggle with Congress over deficit reduction in 19'! Congressional Democrats insisted that the administration agree new revenue programs, while President Bush insisted that would accept no new taxes. Bush eventually surrendered—at the cost of his presidency—and a budget that included tax increases was enacted in 1991. This budget also contained a formula for m duction of the deficit over a period of several years. Under the' terms of one element of the budget formula, no new spending pro— .- grams could be enacted without equal cuts in existing spendin g programs or the enactment of new taxes to cover any cost increases , The administration saw this provision as a mechanism that woul . block Democratic efforts to create new social programs while Dec mocrats hoped that the overall package of revenue enhancements ‘ would gradually reduce the deficit and pave the way for new do» 3 mestic spending. , Despite the deficit, congressional Democrats did find one way Q to create new social programs. This was through the creation oft: new rights, such as the rights of the disabled under the Americans '- with Disabilities Act (ADA) and the rights of new parents under family Eeave legislation. These new rights provided defined con stituency groups with a package of benefits whose costs were home [mammal C meat 137 by business rather than by the deficit—crippled federal treasury. The cost, for example, of making a workplace suitable for handi- capped employees fell upon the employer rather than on the pub- lic. Moreover, by defining the benefits awarded to the disabled as rights rather than mere benefits, Congress opened the way for the courts to interpret and expand these new programs without any need for further action on its part. In recent years the courts have shown a willingness to interpret rights in an expansive way, and Congress hoped that in the years to come they would find that ad- ditional rights were impiied by the initial rights and so expand ADA and the other programs. A number of advocacy groups pre- pared for campaigns of litigation designed to begin this process of rights expansion. After his election in 1992 Bill Clinton sought to circumvent the deficit by introducing a new package of social programs under the rubric of “investment.” Clinton claimed that spending on educa— tion, crime prevention, health care, and community services should be understood as a form of investment in the nation ’5 future rather than merely a form of current expenditure. At the same time he in— troduced a new tax program, the BTU or energy tax, to alleviate some of the costs of these new programs in accordance with the terms of the 1991 budget compromise. His effort was defeated by Congress, and as noted above, the deficit continued to restrict the possibility for new Democratic programs until 1998, when as a re- sult of three years of sustained economic growth, increased tax revv enues all but eliminated the federal deficit. THE NATIONAL SECURITY APPARATUS AND INSTITUTIONAL COMBAT Just as they sought to make political use of fiscal policy, the Re— publicans in recent decades used the military and national security apparatus as a political weapon. After World War II there had been a bipartisan consensus in the United States on questions of foreign and military policy.S ...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern