How The Bush Administration Caused The 1992-2000 Recession

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The 90’s decade started and ended in a recession. What happened in between those years was the largest expansionary period of the US economy in history. The George Herbert Walker Bush Administration was leading the fiscal policy during the first recession of 1990-91. Bill Clinton inherited the recession and led the US in prosperous times during 1992-2000 expansionary periods. George W. Bush would lead us through the 2001 and beginning of the 2008 recessions. During this time period there was one main chairman of the Federal Reserve, Alan Greenspan. This paper examines the causes of these recessions, outlines the monetary and fiscal policies used to combat the recessions and return the country to prosperity. In addition, the PepsiCo Corporation…show more content…
The Federal Reverse cut interest rates starting in July of 1990 and continuing until December of 1991. However, this was not enough to keep the economy from moving into a recession. There was no significant use of fiscal policy implemented to deal with economic recession of 1990-91. President George H. Bush tried to pass an economic stimulus package but was vetoed by Congress. Greenspan kept lowering interest rates through 1992 and the changes in GDP from quarter to quarter started to increase in Q2 of 1991. However the impacts to the economy had already taken hold and unemployment was at 7% by 1992. Low consumer confidence levels caused consumer spending to significantly decrease during the recession. The Fed took action by continuing to reduce interest rates. The election of the new democratic administration also increased consumer confidence and eventually consumer spending started to increase over…show more content…
If Pepsi can do well in economic recession then it could do even better in economic booms but it must stay in touch with consumer tastes and trends. In the 1990’s to increase brand loyalty to Pepsi, they launched the Pepsi Stuff campaign. Consumers of Pepsi were awarded points through label packaging they could use the points to buy merchandise. In the mid 90’s consumers started to become more health conscious. In 1997, PepsiCo started to increase their revenues again by changing their product mix through acquisitions and divestitures. They acquired Aquafina, to compete with Coke in bottled water and to adapt to the consumer trend to eat healthier. Spun off their fast food chains Taco Bell, KFC, and Pizza Hut but secured a lifetime contract to always sell Pepsi keeping their distribution channels. They would again respond to consumer trend to eat and drink healthier by acquiring Quaker Oates in 2001, during the

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