NAFTA created an economic alliance between the three major countries on the continent of North America.

President Clinton's welfare reform bill encouraged poor Americans to look for work, and during Clinton's presidency, work was definitely available. During Clinton's two terms as president, Americans saw the greatest economic expansion since the end of World War II. Unemployment went down, the national debt went down, and by the end of Clinton's presidency, the national budget had a surplus--as a country, we were taking in more money than we were spending.

Some of Clinton's policies during his first term contributed to the overall economic success of the country: For example, he cut taxes for all but the top 1.5 percent of earners in 1995, and he raised the minimum wage in 1996. Many economists believe those policies gave Americans more money to spend and stimulated the economy.

President Clinton's most famous economic accomplishment was the 1993 signing of the North American Free Trade Agreement (NAFTA), which made trade between Canada, Mexico, and the United States much easier and more profitable. While business among those three countries increased dramatically after NAFTA was passed, it came at the expense of some American workers, who saw their jobs shipped south to Mexico, where labor was cheaper. (NAFTA removed any penalties for moving a business across U.S. borders, where workers tended to accept lower wages.)

Use the following questions to review America's economic expansion under President Clinton: