31.4 Bill clinton and the new economy  (Page 3/19)

Domestic issues

In addition to shifting the Democratic Party to the moderate center on economic issues, Clinton tried to break new ground on a number of domestic issues and make good on traditional Democratic commitments to the disadvantaged, minority groups, and women. At the same time, he faced the challenge of domestic terrorism when a federal building in Oklahoma City was bombed, killing 168 people and injuring hundreds more.

Healthcare reform

An important and popular part of Clinton’s domestic agenda was healthcare reform that would make universal healthcare a reality. When the plan was announced in September of the president’s first year in office, pollsters and commentators both assumed it would sail through. Many were unhappy with the way the system worked in the United States, where the cost of health insurance seemed increasingly unaffordable for the middle class. Clinton appointed his wife, Hillary Clinton, a Yale Law School graduate and accomplished attorney, to head his Task Force on National Health Care Reform in 1993. The 1,342-page Health Security Act presented to Congress that year sought to offer universal coverage ( [link] ). All Americans were to be covered by a healthcare plan that could not reject them based on pre-existing medical conditions. Employers would be required to provide healthcare for their employees. Limits would be placed on the amount that people would have to pay for services; the poor would not have to pay at all.

The outlook for the plan looked good in 1993; it had the support of a number of institutions like the American Medical Association and the Health Insurance Association of America. But in relatively short order, the political winds changed. As budget battles distracted the administration and the midterm elections of 1994 approached, Republicans began to recognize the strategic benefits of opposing reform. Soon they were mounting fierce opposition to the bill. Moderate conservatives dubbed the reform proposals “ Hillarycare ” and argued that the bill was an unwarranted expansion of the powers of the federal government that would interfere with people’s ability to choose the healthcare provider they wanted. Those further to the right argued that healthcare reform was part of a larger and nefarious plot to control the public.

To rally Republican opposition to Clinton and the Democrats, Newt Gingrich and Richard “Dick” Armey, two of the leaders of the Republican minority in the House of Representatives, prepared a document entitled Contract with America    , signed by all but two of the Republican representatives. It listed eight specific legislative reforms or initiatives the Republicans would enact if they gained a majority in Congress in the 1994 midterm elections.