- Ten-Year Period of U.S. Economic History Overview 1990-2000

Ten-Year Period of U.S. Economic History Overview 1990-2000 •Economy dipped into a recession in 1991 but recovered in 1992 •Dow Jones Industrial Average hit the 11,000 mark in 1999 •President Clinton signed the Financial Services Modernization Act of 1999 •Low inflation •Low unemployment rate •Low prices on computers, healthcare and oil •Tax cuts •21 million jobs added •Compared to previous decades, the 1990's saw some of the greatest economic performance and increases. •A falling unemployment rate alongside low inflation rates allowed for this decade's economic standing to be considered outstanding. •However, there was an increase in personal bankruptcy claims in this decade •This was also joined by an expanded trade deficit and a decrease in personal saving rates. •Even so, these negativities were held a minimal negative effect against the overall economic overview. GDP •Gross Domestic Product (GDP) and Growth •From 1990-1995, real gross domestic product (GDP) grew at an average annual rate of just 2.4% per year (down from 4.3% real annual growth from 1983-1989) •Slight dip in 1995, GDP growth took off - averaging 4.3% a year in real terms from 1996-2000 •Interestingly enough, the economic history of the 1990's seemed to be evenly divided evenly into two different economic states. •1990-1995 provided a low, declining GDP for the U.S., economy. •The GDP annual growth percentage was nearly half the amount (2.4%) it was at for the previous decade (4.3%). •1996-2000 the economy had turned around and the GDP returned to a 4.3% annual increase. •This was speculated to be a result of the improvements of IT production such as; telecommunications and computers. Unemployment and Inflation •The early 1990's ('90-'92) did see an increase in unemployment rates •This was attributed to the recession of July 1990. •After these first few years, the unemployment rate steadily dropped throughout the rest of the decade. •The average inflation rate during this period was about 3.0% •Correlating with the highest unemployment rate being at the beginning of the decade, the years with the highest inflation rate were the first few years as well ('90-'91). Interest Rates •The beginning of the 1990's started with the highest interest rate the decade had. •Coming out of the 1980's the U.S., interest rate was at 10%. •After 1990, the rate proceeded to drop to 6% by the end of 1992. •Following the decade low of 6% the interest rate started steadily increasing to 8.5%. •By the end of the decade and turn of the millennium, the rate was at 8.5%. Conclusions The general economic overview of the 1990's can be determined that the beginning of the decade presented the worst few years the economy would experience for this time period. The unemployment rate, inflation rate, and interest rate were all at their highest points during these three years. As well as, the GDP had its lowest annual growth percentage in this time frame. By the half way mark of the decade, all four of these important economic aspects had begun to turn around. The GDP annual growth percentage had doubled and the other three rates had all begun to decrease, for an improving economy.