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Interest Rate
The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding. Since unemployment was low and inflation was constant, the interest rates increased to keep money going to both the bank and gov't.
Low: 5.83 rate in 2003
High: 10.12 rate in 1990
changes can affect both inflation and recessions. Inflation refers to the rise in the price of goods and services over time. It is the result of a strong and healthy economy. -
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Inflation Rate
A general increase in prices and fall in the purchasing value of money. The inflation rate during our time was characterized as extremely stable which lead to more trust in the economy: http://www.tradingeconomics.com/charts/united-states-inflation-cpi.png?s=cpi+yoy&d1=19900101&d2=20061231 -
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Consumer spending
Good and services bought by households in the satisfaction of their needs and wants. It includes non-durables such as food, semi-durables such as clothing, and durables such as refrigerators.
This was a time characterized by many advances in technology which were both bought by consumers and made it easier for them to buy. http://www.tradingeconomics.com/charts/united-states-consumer-spending.png?s=unitedstaconspe&d1=19900101&d2=20061231 -
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Unemployment Rate
% of total workforce who are unemployed and are looking for a paid job. Unemployment rate is one of the closest watched statistics because a rising rate is seen as a sign of weakening economy that may call for cut in interest rate. The unemployment stayed around 5-6% which indicates a very strong economy. This shows that the family life was very prosperous compared to past decades. http://www.tradingeconomics.com/charts/united-states-unemployment-rate.png?s=usurtot&d1=19900101&d2=20061231 -
Period: to
GDP
1990 $23,038
1991 $23,443
1992 $24,411
1993 $25,327
1994 $26,578
1995 $27,559
1996 $28,772
1997 $30,282
1998 $31,687
1999 $33,332
2000 $35,082
2001 $35,912
2002 $36,819
2003 $38,225
2004 $40,292
2005 $42,516
2006 $44,623 -
Fiscal Policy
U.S. fiscal policy: a dramatic improvement in the current and projected budget balance, and a shift to a new political consensus in favor of balancing the budget excluding Social Security rather than the unified budget. -
Tax Expansion Act
Tax provision extensions. Provided a six-month extension for a number of tax provisions and credits facing expiration. Categories included research tax credits; exclusions for employer-provided educational assistance; targeted jobs credits; alternative energy credits; itemized deduction for health insurance costs; drug clinical testing credits; issuance authority for mortgage revenue bonds, certificates, and manufacturing/farm facility construction; credit for charitable contributions of appreci -
Period: to
The Glass-Steagall Act
Removed the seperation between Wall Street Banks and depository banks -
Revenue Provisions of the Health Insurance and Portability Act
Medical savings accounts. Offered these IRA-like vehicles for the tax-advantaged accumulation of assets against possible medical expenses for employees covered under an employer-sponsored high deductible plan (e.g., at least a $1,500 deductible) of a small employer and self-employed individuals, regardless of the size of the entity for which they perform work. -
Repealing of The Glass Steagall Act
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Business Cycles
Typical business cycles include expansion, a peak, contraction and recovery. When dramatic business cycles occur in different industries, it often affects the national economy as a whole and not just the industry experiencing the fluctuation.
Business Cycle Dating Committee has determined that a peak in business activity occurred in the U.S. economy in March 2001. A peak marks the end of an expansion and the beginning of a recession. -
Tax Policy
Taxation policy affects business costs. For example, a rise in corporation tax (on business profits) has the same effect as an increase in costs. Businesses can pass some of this tax on to consumers in higher prices, but it will also affect the bottom line. -
Gov Spending
If government spends money in a productive way that generates asufficiently high rate of return, the economy will benefit, but this is the exception rather than the rule. There is overwhelming evidence that America's economy could grow much faster if the burden of government was reduced. Shrinking the size of government would therefore boost prosperity and make America more competitive.
