The Survival Podcast Forum

Finance and Economics => The Money Board => Economic News, the Global Economy and all Things Monetary => Topic started by: surfivor on December 28, 2018, 12:56:57 AM

Title: Did Bill Clinton balance the budget or eliminate the deficit?
Post by: surfivor on December 28, 2018, 12:56:57 AM
My sister claims Bill Clinton balanced the budget or eliminated the deficit. I am not sure on that. I do know he helped give us NAFTA and deregulated banking. I tend to see 911 as the event that helped wreck the economy
Title: Re: Did Bill Clinton balance the budget or eliminate the deficit?
Post by: Alan Georges on December 28, 2018, 05:53:14 AM
It's fair to say that it happened on his watch in the last few years of his two terms.  Some of the graphs at this link show this: https://en.wikipedia.org/wiki/Deficit_reduction_in_the_United_States (https://en.wikipedia.org/wiki/Deficit_reduction_in_the_United_States)

As to why it happened and the degree of credit Clinton should get for this, that's a deep and ugly dive into the politics and economics of the 90's.  It may be more accurate to say that the Republican-held congress of the time should get most (but not all) of the credit.
Title: Re: Did Bill Clinton balance the budget or eliminate the deficit?
Post by: Carver on January 06, 2019, 08:00:15 PM
I can't remember exactly how or when, but pretty sure there was a projected surplus so congress went on a spending spree, but as it turned out the surplus was a paper surplus that would only occur if 'this' happened and 'that' happened, which it never did and there never was a surplus but a massive debt.
Title: Re: Did Bill Clinton balance the budget or eliminate the deficit?
Post by: iam4liberty on January 06, 2019, 08:52:45 PM
I can't remember exactly how or when, but pretty sure there was a projected surplus so congress went on a spending spree, but as it turned out the surplus was a paper surplus that would only occur if 'this' happened and 'that' happened, which it never did and there never was a surplus but a massive debt.

What happened was Gingrich's congress rejected Clinton's spending requests which led to short-term balanced budget.  That is when the longest and deepest government shutdown in US history occured (1995). It saved a lot of money. Then republicans forced him to trim entitlement programs to end the shut down which, along with some deregulation that spurred the economy, resulted in the surplusses.  However, it should be noted that these were still somewhat mythical as social security and other funds were woefully underfunded.  But government runs on cash accounting not accruels like a business.