During the Bush Administration, the exonomy grew more slowly than at any time since the end of World War 2. Among other factors, sharply rising oil prices follwoing Iraq's invasion of Kuwait threw America into a Recession that persisted longer than expected.
The long recession was partly caused by the consumer and corporate debts incurred during the Reagan era. Deregulation had allowed banks and savings and loans to lend money more freely. Corporations funded mergers with junk bonds, or high risk bondsthat off high yields.
Consumers ran up large debts on credit cards and home mortages. the Federal government, too, spent far more than it recieved. These debts limited the abiltiy of consumers, corporations, and the governemnt to spend and invest.
As a result, banks and S&Ls failed at rates unseen since the great depression. Airlines went out of business. Famous department stores filed for bankruptcy. Industries announced plant closings and layoffs of workers.
By Mid 1992 almost 10 million Americans were unemployed. Another 6 million workers were unemployed. This means that these people held part time jobs while looking for full time work.
As unemployment rose, people migrated from one state to another in search of jobs, and some found themselves homeless. Homeles people include battered women, runaway children, acoholic, drug abusers, deinstitutionalized mental patients, and peple lacking family support. Homelesssness reflescted rising rents, lower wages for unskilled workers, and the urgent need for low-cost housing. Estimates of the number of homelessness people in America ranged as high as 3 Million.