US science and technology policy under President Bill Clinton (1993-2001)

USD; at the same time, the US invested 152.16 billion USD abroad, and Japan invested 22.27 billion USD [54; p.4].

In 1997, the US was the world leader in exporting 10 high-tech products with a value of 258 billion USD, while Japan exported only 152 billion, Germany 140 billion, UK 105 billion, France 90 billion, Singapore 70 billion. In 2000, the proportion of the IT industry in the US GDP was more than 8%. The IT industry has become the largest industry in the US and contributes more than 35% to the growth of the US economy [6; p.15].

Second , the defense industry has been shrinking and many companies operating in the military industry have found a place to operate in the civilian sector or sought more contracts from abroad.

During the 1990s, the total value of government military orders to the top 10 defense industry companies fell by about 25% ($61.7 billion in 1991, only $46.8 billion in 1999). The decline can be seen indirectly through the reduction in the number of workers in the defense industry. According to statistics from the US Department of Labor, the labor force in four defense industry sectors (aircraft manufacturing, space and guided missiles, search and rescue equipment, and ordnance equipment) in the years 1990-1995 all fell by 30% to 45% [29; p.52]. With many support measures from the state, many companies that previously produced military products have used their own technology or exchanged technology with companies that produced civilian products to produce many civilian products that have been accepted by the market, such as the aircraft manufacturing industry, which has partially shifted to producing civil aircraft.

Third , it has restored the competitiveness of some previously overshadowed industries. For example, Ford used computerized “ quick information processing ” technology to mold automobile parts using liquid methods without the need for detailed diagrams and drawings. By applying such new production technology, American companies have created quality cars at competitive prices in the domestic and international markets.

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Thus, the science and technology policy not only promotes the development of the US economy with a reasonable and "healthy" economic structure, but also contributes to the formation of a "new economy" in which information technology plays a leading role.

 Contribute to creating budget surplus

Large financial deficits were a prominent issue in the US economy in the decades before Bill Clinton took office. From 1981 to 1992, three terms of two Republican presidents left the US with a large budget deficit. In particular, in 1992, the budget deficit reached a record high of 290 billion USD [10; p.26]. This created an extremely serious burden on the US economy. Although coming to power with a legacy of record budget deficits, by successfully implementing economic policies and science and technology policies, the Clinton administration brought the budget from deficit to surplus. Since Clinton took office, the US economy has grown continuously with low inflation below 3%, which has had a positive impact on budget revenue [22; p.21]. The Balanced Budget Act passed in 1997 stipulated that the deficit would be sharply reduced over the next five years, eventually achieving a balanced budget by 2002. However, the situation was more positive when the fiscal deficit in 1997 and 1998 fell sharply, and the United States attempted to further reduce the deficit. On September 27, 1997, the US Department of Commerce announced that the federal government's fiscal deficit in August was $34.6 billion. The fiscal deficit for the first 11 months of fiscal year 1997, calculated from October 1, 1996, was $71.3 billion, down 50% from the same period of the previous fiscal year [77]. Fiscal year 1997 became the year with the smallest fiscal deficit since 1974. By early 1998, the budget deficit had fallen to its lowest level of $22 billion, accounting for 0.3% of GDP [28; p.143]. Also in 1998, the federal budget began to have a surplus, and by the end of fiscal year 1998, Clinton had not only paid off that huge deficit but also had a surplus of more than $69.2 billion, equal to 0.8% of GDP [10; p.27]. 1999 was the second consecutive fiscal year in which the US federal budget had a surplus, the budget

The federal budget in fiscal year 1999 (ending September 30, 1999) achieved a total revenue of 1,827.29 billion USD, with a total expenditure of 1,704.55 billion USD. Previously, the last time the US government achieved a budget surplus for two consecutive fiscal years was the period 1955 - 1957 [47; p.117]. By the end of fiscal year 2000, the surplus had reached a record 237 billion USD [10; p.27]. This is a dream achievement for US Presidents.

The consecutive budget surpluses in 1998 and 1999 helped the Government reduce the total federal debt by 138 billion USD, but this figure still stands at more than 5 trillion USD (the public holds 3.5 trillion USD). With optimistic forecasts for the US economy, the Clinton Administration estimated that in the next decade the total federal budget surplus would reach 2.9 trillion USD, accordingly, the federal debt owned by the public would decrease from 3.5 trillion USD to 865 billion USD in 2009 [47; p.118].

Thus, the US achieved the budget surplus target four years ahead of the Government's plan (2002). And from 1998 to 2000, the Government always achieved a budget surplus with a high increase in value. In total, in 1998, 1999 and 2000, the US Government achieved a surplus of 430 billion USD. In 1999, the surplus doubled, to 125 billion USD, and then to 236 billion USD in 2000 [30; pp.394-395].

The fiscal discipline policy has reduced government spending to its lowest level since 1996. The tightening of spending has helped the government free up more financial resources for private investment in the process of economic recovery and development, while also reducing total spending from 22% in 1992 to 18% in fiscal year 2000 [28; p.144]. However, the two factors considered to be the most important in determining the reduction of the US budget deficit are continuous economic growth and reduced military spending. Thus, it can be said that the economic development policies in general and the financial policies in particular that the Clinton Administration implemented during its two terms have been truly effective, becoming the main driving force in economic recovery and development.

The achievements of budget surpluses have laid the foundation for solving long-term problems, which is an important step in promoting the national financial strength in the future. It is a great achievement of the US economy. The problem is how to continue to maintain the trend of budget surpluses and how to use them effectively, when the aging population and the implementation of social security and health care programs are requiring more expenses, which can easily lead to imbalances in the future.

 Contribute to the formation and development of a new economy in the US.

Entering the 90s, due to the strong development of science and technology, the United States has emerged a " new economy " or also known as the knowledge economy. It developed along with the development of the information revolution and the widespread application of information technology. So what is the "new economy"? You can read many different definitions about it. The simplest is to distinguish the post-industrial economy from the "old economies" (agricultural and industrial) in human history. The sign often considered as the criterion of a new economy is its electronic base. According to Fortune magazine (June 17, 1994): "The center of the new economy is the sophisticated computer, the silicon chip from semiconductors, containing programs and laser optics, to be able to create the so-called information age in many meanings" [72; p.8].

The main characteristics of the “ new economy ” are: knowledge replaces material as the main production factor; the information technology industry and related industries occupy a leading position in the national economy; capital, goods, technology, etc. rapidly circulate globally, enterprises conduct networked business; the core of the new economy is the information economy, the key cause of which is the scientific and technological revolution. The US government and enterprises promptly promote the exploitation and application of information technology, creating the basis for the transition from an industrial economy to an information economy [77]. From the US, this new economic form spreads throughout the world through modern electronic information technology as well as the Internet information network.

The main characteristics of the US "new economy " are:

Firstly, the new economy is based on knowledge . It is an economic form originating from new science and technology. In the new economy, knowledge is the main content of production, distribution and consumption, knowledge and knowledgeable labor are the most important production factors. Knowledge is also the driving force of economic growth, the contributions of knowledge and technology are increasingly large to economic growth. In the US, each year, expenditures for knowledge creation and communication work account for about 20% of GDP, of which education accounts for 10% of GDP, expenditures for training and in-service education account for 5%, and expenditures for research and development account for 3-5%. Many agricultural and industrial occupations are becoming intellectual occupations, almost 60% of US citizens are intellectual workers, 80% of new occupations are created by knowledge-intensive industries [67; p.7].

Second, the new economy is dominated by information . Since the late 1990s, the United States has been shifting from an industrial economy to an information economy. The information industry, computer science, related industries and service industries occupy a dominant position in the US national economy. According to 1996 calculations, the output value of the communications industry reached about 1,000 billion USD, accounting for 14% of the US GDP [77]. The information industry is not only the largest industry in the US but also the fastest growing industry, growing at a double-digit rate every year. What attracts people's attention is that due to the application of information technology, new phenomena such as digitization, the Internet, electronics, etc. have appeared in economic sectors. In the new economic conditions, all forms of information are converted into numbers, reducing storage time on computers and transmitting at the speed of light on the network. This created conditions for the emergence of the e-commerce industry, with more and more products being consumed over the Internet, and paid for with electronic money cards. According to statistics, the e-commerce industry grew at a rate of 200% annually, and by 1999, about 39% of US retail goods were consumed online [77].

Third, the economy is guided by the global market . Information technology, especially the Internet, makes the “ global village ” increasingly smaller. Knowledge and information do not distinguish between borders, and are the main economic resources that will inevitably make cross-border economic activities become global activities. Capital, production, product management, labor, information and technology will circulate across countries. The connection between trade and technology between countries and between large enterprises is increasingly strengthened, and at the same time, competition is increasingly fierce. Competition is conducted on a global scale, not only by multinational companies but also by small and medium-sized enterprises through their network of connections with large companies, directly or indirectly having relations with the world market. In 1998-1999, the US Internet network connected to 186 countries and regions in the world, and more and more US enterprises were caught up in the wave of economic globalization. Ten years ago, US enterprises operating globally accounted for only 20% of the total number of enterprises in the US, but now the proportion has exceeded 60% [77]. In addition, the level of dependence of the US economy on the global economy is increasing.

Fourth, the new economy takes the enterprise network as the carrier. First , the enterprise becomes a network formed by many small units. Second , the stages in the enterprise business process are connected to each other. Implement strict management methods from the beginning to the end of product design, processing, manufacturing, consumption, after-sales service and final disposal. Third , build a network management structure, make it have direct contact between leaders and employees, reduce the intermediate steps, achieve the goal of streamlining and high efficiency. Fourth , build a network between different companies, make coordination and cooperation more convenient, supply and transfer of goods more suitable. Fifth , implement the network between enterprises and employees, employees can work at home, management staff can also work anywhere, anytime through the use of handheld information tools. Finally , between the enterprise and the customer can contact each other,

Through online communication, businesses know the intentions of customers and conduct business to satisfy customers.

Fifth, the new economy is characterized by the business cycle . In the 1990s, the US business cycle still existed, the operation of the economy had periods of growth and periods of decline, recession could still occur. However, the law of motion of the cycle has undergone great changes, its characteristics have clearly declined compared to before. First , the development period is relatively long. Second , the contraction period of the cycle means the recession period is shortened, the production rate decreases less. Third , the development period has no big ups and downs, and the rare phenomenon of low “ inflation rate ” and low “ unemployment rate ” continues to appear. This new development stage of the US has entered its 8th year, the unemployment rate has decreased to 4.6%, the lowest level in the past 28 years, the inflation rate is still below 3% [67; p.8]. Fourth , the economic development of the 90s increased with the growth of enterprise investment, the labor production rate increased relatively large.

The “ new economy ” is not only a unique phenomenon of the American economy, but will be a common phenomenon of economic development in the West and even the whole world. The new economy with the information economy as its core will lead the world economy in the 21st century. The contribution of science and technology to economic growth will increase from 70-80% in the late 20th century to 90%. In the late 90s, 60% of American workers were knowledge workers, 80-90% of new jobs were created by knowledge-intensive industries [32; p.24]. Therefore, many experts have predicted that at the beginning of the 21st century, the global information highway will be completely opened, the world economic development ship will enter the information economy era. The “ new economy ” is a product of the information revolution that emerged in the United States and will spread widely around the world.

It can be said that, thanks to the multi-dimensional impacts on the economic structure of the Clinton Administration, the picture of the US economic structure in the late 1990s was brighter, more competitive and developed. Economic development

In the 90s of the 20th century, the United States had a clear advantage over other developed countries in the world. With those development trends and the development premises that had been created (high and stable economic development, economic structure strongly oriented towards information technology industries, import and export and international investment maintaining a dominant position, low unemployment, increasing employment, low inflation, high level of knowledge of the labor force...) and strategic orientations for knowledge-based economic development, world-leading industries with a higher level of technology than other countries... created favorable conditions for the United States to maintain its position as the world's number one economy in the first decades of the 21st century.

3.1.2 Social

Contribute to improving the quality of life.

Thanks to human resource development policies, the number of employed Americans has increased not only in quantity but also in quality and labor productivity, thus creating a truly efficient economy. This growth has led to high incomes for many American families. Over the past decade, the real income of an average household has increased by more than 6,000 USD and the number of families owning stocks has increased by 40% [28; p.222].

As more jobs emerged in new technology industries, workers’ incomes also tended to increase. Since 1993, the average wage has increased by 6.5%. This is impressive because during the Reagan and Bush (Senior) years, the average wage fell by 4.3%/year. Because of the increase in wages since 1993, the income of middle-class families increased by an average of more than $5,000, from $41,491 in 1993 to $46,737 in 1998 [28; p.88].

US science and technology policy under President Bill Clinton (1993-2001) - 9

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