1

Bill Clinton who was president of US between 1993-2001 provided brillant economy

in the US. On the contrary, George W. Bush who was president of US between 2001-2009

caused from the top to down in the US economy. Unemployment rates and inflation rates in

these period had been affected by their economic policies.

1990s started with Bill Clinton. Democratic presidental candidate was elected

president for the second time since Franklin Roosevelt.1

When Bill Clinton came to power, US lived brillant period. He had achieved many

successes economically. During Bill Clinton era, there has been lowest unemployement rate,

lowest inflation in 30 years, and people were most powerful economically.2

Bill Clinton ignored Keynesian policies. He had applied capitalist policies. Bill

Clinton had applied the saving policies in economy and moderate policies in foreign policy.

At the same time, he adopted the supply-side policies.3

According to unemployment in Bill Clinton era, when unemployment rate was at 8

percent in 1993, the unemployment rate has dropped to 4.1 percent in November 1999. Also

this unemployment rate was at 4 percent when Bill Clinton retired from the office in 2001. To

decrease the ratio of unemployment Clinton's applied supply-side policies and the creation of

22.7 million new jobs area had been affected.4

1http://www.haberler.com/bill-clinton/biyografisi/(27.12.13)

2 http://www.haberler.com/bill-clinton/biyografisi/(27.12.13)

3 http://www.ekonomikcozum.com/koseyaz/kosehas/clintonun-topladigi-puanlari-bush-
pervasizca.htm(28.12.13)

4 http://www.pusula.tv/modul_haber/yazi_detayli.asp?YazarID=24&yaziID=359(28.12.13)
 2

According to inflation rate in Bill Clinton era, the supply-side policies prevented the

rise of inflation of the era. When Bill Clinton took the position as president, inflation rate

remained at the same amount. Inflation rate was at 3 percent.5

During the Bill Clinton era, economy had grown overly. In other words, rapid growth

and the constant decrease in inflation was carried out together and this issue started a

discussion among economist. It is started to be thought that American economy had a more

larger capacity of fast growing potential than it was expected.6

In addition to them, borrowing had been stopped, per capita income had been

increased and foreign trade deficit had been reduced. As a result, economy in the Bill Clinton

era showed that budget surpluses, full employment, rising wages and job creation.7

George W. Bush came to power when Democrat Party lost in election in 2001. During

the George W. Bush period, there was worse economic development.8

George W. Bush wanted to apply laissez fair economy firstly. After 11 September

Attacks, George W. Bush had to change economic policy. George W. Bush followed an

aggressive policy because of 11 September Attacks in foreign policy. He followed spending

policies in the economy.9

5 http://www.pusula.tv/modul_haber/yazi_detayli.asp?YazarID=24&yaziID=359(28.12.13)

6 http://www.usemb-ankara.org.tr/ABDAnaHatlar/Ekonomi.htm(28.12.13)

7 http://www.pusula.tv/modul_haber/yazi_detayli.asp?YazarID=24&yaziID=359(28.12.13)

8 http://www.ekonomikcozum.com/koseyaz/kosehas/clintonun-topladigi-puanlari-bush-
pervasizca.htm(28.12.13)

9 http://www.ekonomikcozum.com/koseyaz/kosehas/clintonun-topladigi-puanlari-bush-
pervasizca.htm(28.12.13)
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According to George W. Bush eras unemployment rate, unemployment rate that

occured at 4 percent in Bill Clintons increased at the rate 1 percent becuse of the spending

policies. This rate was appeared too low. However, this means that 3 million people entered

into the ranks of unemployment.10

According to George W. Bush eras inflation rate, inflation rate that occured 3 percent

in Bill Clinton era increased and inflation rates occured 4.5 percent in George W. Bush era

because of spending policies. This raise had led to react in US. 11

George W. Bushs spending policies caused 2008 mortgage crisis. 2008 economic

crisis had caused major employed losses. As a result, unemployment rate increased in US.

When unemployment rate occured 5 percent in 2007, unemployment rate occured 6.1 percent

in 2008. Unemployment rate occured 7.2 percent in 2009. In this period, inflation had

increased. Inflation was decreased by government intervention.12

Keynesian policies are implemented for overcome the crisis period. For his reason,

policies that were applied for overcome 2008 crisis period reminded Keynesian policies. In

other words, Smiths policies were left and Keynesian policies were applied in global

economic crisis period.13

In addition to them, economic growth in George W. Bush era was less than economic

growth in Bill Clinton era. In the Bill Clinton era, borrowing was stopped. However,

10http://www.pusula.tv/modul_haber/yazi_detayli.asp?YazarID=24&yaziID=359(28.12.13)

11 http://www.pusula.tv/modul_haber/yazi_detayli.asp?
YazarID=24&yaziID=359(28.12.13)

12http://kariyertez.net/FileUpload/ks212629/File/dogan_alantar_kuresel_finansal_kriz_nedenleri_son
uclari_mfy81.pdf(29.12.13)

13 http://www.mfa.gov.tr/abd-ekonomisi-ve-_mortgage_-krizi-nereye-gidiyor_.tr.mfa(29.12.13)
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borrowing was increased in George W. Bush era. Per capita income in George W. Bush era

was increased less than in Bill Clinton era. During George W. Bush era foreign trade deficit

was increased. As a result, George W. Bush era was more unsuccesful than Bill Clinton era.14

In conclusion, unemployment rates and inflation rates have been affected by economic

policies. Economic policies affect unemployment rates and inflation rates positively or

negatively. For his reason, when unemployment rates and inflation rates had been affected

positively in Bill Clinton era, they had been affected negatively in George W. Bush era.

REFERENCES

Akar, B. (2007, January 30). Zirveden Aa niin Hikayesi: ABD Clinton'dan Oul Bush'a

Geen Dnem. Retrieved December 28, 2013, from www.pusula.tv:

http://www.pusula.tv/modul_haber/yazi_detayli.asp?YazarID=24&yaziID=359

Alantar, D. (n.d.). Kresel Finansal Kriz: Nedenleri ve Sonular zerine Bir Deerlendirme.

Retrieved December 29, 2013, from www.kariyertez.net:

http://kariyertez.net/FileUpload/ks212629/File/dogan_alantar_kuresel_finansal_kriz_nedenler

i_sonuclari_mfy81.pdf

Babal, T. (n.d.). ABD Ekonomisi ve Mortgage Krizi Nereye Gidiyor? Retrieved December

29, 2013, from www.mfa.gov.tr: http://www.mfa.gov.tr/abd-ekonomisi-ve-_mortgage_-krizi-

nereye-gidiyor_.tr.mfa

14 http://www.pusula.tv/modul_haber/yazi_detayli.asp?YazarID=24&yaziID=359(28.12.13)
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Embassy of the United States. (n.d.). Retrieved December 28, 2013, from www.usemb-

ankara.org.tr: http://www.usemb-ankara.org.tr/ABDAnaHatlar/Ekonomi.htm

Haberler.com. (n.d.). Retrieved December 27, 2013, from www.haberler.com:

http://www.haberler.com/bill-clinton/biyografisi/

zfidan, H. Y. (2003, January 26). Clinton'un Toplad Puanlar Bush Pervaszca Harcyor.

Retrieved December 28, 2013, from www.ekonomikcozum.com:

http://www.ekonomikcozum.com/koseyaz/kosehas/clintonun-topladigi-puanlari-bush-

pervasizca.htm