What forces drove the economic resurgence of the 1990s?

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Four forces drove the economic revolution of the 1990s: (1) Economic revolution (2) Technology boom (3) Stock market boom (4) Stock market bust.

(1) Economic revolution: Due to the collapse of communism from 1989–1991 in the former Soviet Union, most of the world opened up to market economies with less government interference. During the 1990s, both President Bush and President Clinton used their power of the pulpit to encourage all to adopt globalization to improve standards for all and spread democracy.

(2) Technology boom: Due to developments in computers (e.g., microchips) and the internet, many called the 1990s the start of the new economy. As computers became smaller, faster, and cheaper, more and more people owned one. Coupled with the developments in the internet, the flow of information spread faster than ever before.

(3) Stock market boom: Due to the dot.com boom, more and more individuals owned stock in the market, resulting in a 500% rise in the NASDAQ in the 1990s.

Unfortunately, the stock market eventually burst in 2000 leading to stock prices declining for 3 years (2000–2002) for the first time since the Great Depression. Furthermore, between corporate fraud (such as Enron) and the push for deregulation through the policies of globalization in the 1990s and 2000s, inequality rose, eventually leading to the 2007–2008 economic crisis.

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