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In 1992, Bill Clinton ran as a “new kind of Democrat,” one who would “end welfare as we know it” and craft a society that would reward those who “work hard and play by the rules.” Clinton knew that he could not win as a traditional liberal, so he crafted the now-famous “Third Way” approach, and campaigned and governed under a Third Way banner.
Of course, the Third Way was reinforced by the disastrous (from the Democrats’ perspective) 1994 Midterm Elections. Clinton accepted a Republican welfare reform bill (after two vetoes), balanced the budget (after much Republican prodding) and expanded free trade. At the same time, he proposed a bevy of micro-reforms that won bipartisan approval, in part because they were cleverly crafted so that Republicans could not vote against them. Through a combination of circumstance, accident, and design, Clinton became the Third Way president he had promised.