Reference Questions in TOEFL Reading

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By 1992, many doubted President George H. W. Bush’s ability to address America’s challenges. He had alienated conservative Republicans by breaking his pledge not to raise taxes and faced criticism for not removing Saddam Hussein during Operation Desert Storm. Furthermore, despite living much of his adult life in Texas, he could not overcome the stereotypes associated with his privileged New England and Ivy League background, which hurt him among working-class Reagan Democrats.

Bill Clinton, on the other hand, had overcome a troubled home life to excel academically and develop a passion for politics. At Georgetown University, he supported civil rights and antiwar movements, even running for student council president. In 1968, Clinton received a prestigious Rhodes scholarship to Oxford University. From Oxford he moved on to Yale, where he earned his law degree in 1973. He returned to Arkansas and became a professor at the University of Arkansas’s law school. The following year, he tried his hand at state politics, running for Congress, and was narrowly defeated. In 1977, he became attorney general of Arkansas and was elected governor in 1978. Losing the office to his Republican opponent in 1980, he retook the governor’s mansion in 1982 and remained governor of Arkansas until 1992, when he announced his candidacy for president.

During his campaign, Bill Clinton described himself as a New Democrat, a member of a faction of the Democratic Party that, like the Republicans, favored free trade and deregulation. He tried to appeal to the middle class by promising higher taxes on the rich and reform of the welfare system. Although Clinton garnered only 43 percent of the popular vote, he easily won in the Electoral College with 370 votes to President Bush’s 188. Texas billionaire H. Ross Perot won 19 percent of the popular vote, the best showing by any third-party candidate since 1912. The Democrats took control of both houses of Congress.

Clinton took office towards the end of a recession. His administration’s plans for fixing the economy included limiting spending and cutting the budget to reduce the nation’s $60 billion deficit, keeping interest rates low to encourage private investment, and eliminating protectionist tariffs. Clinton also hoped to improve employment opportunities by allocating more money for education. In his first term, he expanded the Earned Income Tax Credit, which lowered the tax obligations of working families who were just above the poverty line. Addressing the budget deficit, the Democrats in Congress passed the Omnibus Budget Reconciliation Act of 1993 without any Republican votes at all. The act raised income taxes for top earners, lowered them for low-income families, and offered tax breaks to 90 percent of small businesses.

Clinton also strongly supported ratification of the North American Free Trade Agreement (NAFTA), a treaty that eliminated tariffs and trade restrictions among the United States, Canada, and Mexico. The treaty had been negotiated by the Bush administration, and the leaders of all three nations had signed it in December 1992. However, because of strong opposition from American labor unions and some in Congress who feared the loss of jobs to Mexico, the treaty had not been ratified by the time Clinton took office. To allay the concerns of unions, he added an agreement to protect American workers and also one to reduce the potential environmental impact, and the treaty was finally ratified by Congress in late 1993. This achievement resulted in the creation of the world’s largest common market in terms of population, including some 425 million people.

The economy began to flourish not long after Clinton got the keys to the White House. In fact, the nation experienced the longest period of economic expansion in its history during his presidency, almost ten consecutive years. Year after year, job growth increased, and the deficit shrank. Increased tax revenue and budget cuts turned the annual national budget deficit from close to $290 billion in 1992 to a record budget surplus of over $230 billion in 2000. Reduced government borrowing freed up capital for private-sector use, and lower interest rates in turn fueled more growth. During the Clinton years, more people owned homes than ever before in the country’s history (67.7 percent). Inflation dipped to 2.3 percent and the unemployment rate declined, reaching a thirty-year low of 3.9 percent in 2000.