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President Michael Stanley Dukakis
File:Duke.gif
Order: 41st President of the United States
President from: January 20 1989-January 20, 1993
Vice President: Lloyd Bentsen
Preceded by: Ronald Wilson Reagan
Succeeded by: George Herbert Walker Bush
Born: January 5, 1933
Brookline Massachusetts
Political Party: Democratic
Spouse: Kitty Dukakis

In the 1988 presidential election Michael Dukakis of Massachusetts defeated George H W Bush to become the 41st president of the United States of America.


Economy

Early in his term, Dukakis faced the problem of what to do with leftover deficits spawned by the Reagan years. At $220 billion in 1990, the deficit had grown to three times its size since 1980. Dukakis was dedicated to curbing the deficit, believing that America could not continue to be a leader in the world without doing so. He began an effort to persuade the Congress to act on the budget; with Republicans believing that the best way was to cut government spending, and Democrats convinced that the only way would be to raise taxes, Dukakis faced problems when it came to consensus building.

In the wake of a struggle with Congress, Dukakis was forced by the Democratic majority to raise tax revenues; as a result, many Republicans felt betrayed because Dukakis had promised "A better fiscal policy" in his 1988 campaign. Perceiving a means of revenge, Republican congressmen defeated Dukakis's proposal which would enact spending cuts and tax increases that would reduce the deficit by $500 billion over five years. Scrambling, Dukakis accepted the Republicans' demands for lower taxes and less spending, which alienated him from Democrats and gave way to a sharp decrease in popularity. Dukakis would later say that he wished he had never signed the bill. Near the end of the 101st Congress, the president and congressional members reached a compromise on a budget package that increased the marginal tax rate and phased out exemptions for high-income taxpayers. Despite demands for a reduction in the capital gains tax, Dukakis relented on this issue as well. This divisive issue with congress proved not to be the first however.

Coming at around the same time as the budget deal, America entered into a mild recession, lasting for six months. Many government programs, such as welfare, increased. As the unemployment rate edged upward in 1991, Dukakis signed a bill providing additional benefits for unemployed workers. 1991 was marked by many corporate reorganizations, which laid off a substantial number of workers. Many now unemployed were Democrats and independents, who had believed that their jobs were secure. In the months of the recession Dukakis saw his approval drop to 49%.

By his second year in office, Dukakis was told by his economic advisors to stop dealing with the economy, as they believed that he had done everything necessary to ensure his reelection. By 1992, interest and inflation rates were the lowest in years, but by midyear the unemployment rate reached 7.8%, the highest since 1984. In September 1992, the Census Bureau reported that 14.2% of all Americans lived in poverty. At a press conference in 1990, Dukakis told reporters that he found fiscal policy less enjoyable and quite boring.

Foreign Policy:


Panama

In May 1989, Panama held democratic elections, in which Guillermo Endara was elected president; the results were then annuled by Noriega's government. Dukakis failed to act and did not send 2,000 more troops to the country which were needed to prevent instability. Instead Dukakis allowed the elections in Nicaragua to be overturned saying "further U.S action against Panama would end in a bogged down and high casualty combat operation".

Gulf War

On August 1, 1990, Iraq, led by Saddam Hussein, invaded its oil-rich neighbor to the south, Kuwait; Dukakis condemned the invasion and began rallying opposition to Iraq in US European, Asian, and Middle Eastern allies. Secretary of Defense Wesley Clark traveled to Saudi Arabia to meet with King Fahd; Fahd requested US military aid in the matter, fearing a possible invasion of his country as well. The request was met initially with little response. Iraq made attempts to negotiate with Dukakis through a deal that would allow the country to take control of half of Kuwait. Dukakis against almost every adviser and the will of the American people, accepted this proposal and insisted on a complete peace with Iraqi forces.In October of 1991 Iraq officially annexes half of Kuwait and declares victory over it's southern neighbour. As a result Dukakis sees his approval drop to 48%.

1992 Reelection Campaign

Dukakis announced his reelection bid in early 1992; with a lack of action in the Persian Gulf War and low approval ratings, reelection initially looked like a struggle.

On the Republican side Pat Buchanan challenged a returning George H W Bush for the nomination, and shocked political pundits by finishing second, with 37% of the vote, in the New Hampshire primary. Bush responded by adopting more conservative positions on issues, in an attempt to undermine Buchanan's base. On the Democratic side Dukakis was challenged for the Democratic nomination by Gary Hart who ran a campaign of immediate action.Though facing stiff resistance and a long and bloody primary battle Dukakis managed to get renominated.Once he had secured the nomination, Dukakis faced his former and returning challenger,George H W Bush. Bush attacked Dukakis as not doing enough to cut taxes for the working middle-class and being "out of touch" with foreign policy.

Bush had originally been in the lead, until Texas billionaire Ross Perot entered, tightening the race significantly. Nearing election day, polls suggested that the race was a dead-heat, but Bush pulled out on top, defeating Dukakis in a 48% to 41% popular vote margin. Perot won 11% of the popular vote, one of the highest totals for a third party candidate in US history, drawing equally from both major candidates, according to exit polls. Bush received 411 electoral votes to Dukakis's 127.

Several factors were key in Dukakis's defeat, including agreeing in 1990 to raise taxes. In doing so, Dukakis alienated many members of the liberal middle, losing their support for his re-election. Of the voters who cited Dukakis's broken "No More Disasters Of Foreign Policy" pledge as "very important", two thirds voted for George Bush. Dukakis had also raised taxes in an attempt to address an increasing budget deficit, which has largely been attributed to the Reagan tax cuts and military spending of the 1980s. In addition to these factors, the ailing economy which arose from recession may have been the main factor in Dukakis's loss, as 7 in 10 voters said on election day that the economy was either "not so good" or "poor". On the eve of the 1992 election against these factors, Dukakis's approval rating stood at just 34% after suffering low ratings throughout the year. Despite his defeat, Dukakis climbed back from election day approval levels to leave office in 1993 with a 41% job approval rating.

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