Learning from the Strength of the 90s

With the apparent failure of today’s leadership in Washington, it’s hard for me to see how people can ignore the policies which propelled us into prosperity during the Roaring 90s. Under the leadership of President William Jefferson Clinton, and especially the leadership of Newt Gingrich and the Republican Congress, we saw the longest period of economic expansion in American history. But how was such prosperity achieved?

President Clinton remains a hero to the left wing and an enemy to the right wing. For the left wing, President Clinton was the first real successful Democrat since John Fitzgerald Kennedy. For the right wing, President Clinton stopped the seemingly unstoppable Reagan conservative movement which gave America the largest economic expansion in American history. Clinton was also plagued with scandals, many of which were based around moral issues. Yet surprisingly, both sides have an incorrect view of Clinton. In fact, conservatives should embrace Clinton; while liberals should wake up to the reality that their policies do not work and were certainly not in play during the Clinton years.

Under President Clinton’s presidency we saw the largest entitlment reform in U.S. History, the passing of NAFTA, the last deregulation bill, the largest capital gains tax cut in American history, spending was cut by 3.5% of GDP¹, and we saw a balanced budget and a surplus for three years¹. The Clinton presidency is nothing but a resounding example of Supply-side economic success! I still find it puzzling that conservatives hate Clinton and liberals are blind to the fact that Clinton was the most conservative democrat since JFK. Clinton did however raise taxes across the board, but he did this during economic expansion. It is perfectly fine to raise taxes moderately during economic expansions. Reagan himself allowed moderate tax hikes in 1984 and 1987, which were also during an economic expansion. Clinton even signed the Financial Services Modernization Act of 1999, which allowed banks to diversify. This deregulation bill helped many banks stay afloat during the Great Recession of 2008. Contrary to common liberal mythology, the Financial Services Modernization Act of 1999 was the last deregulation bill to be passed. There was no deregulation under President George Walker Bush.

With all that said, conservatives should embrace President Clinton’s presidency because it truly is yet another example of conservative supply-side success. While liberals, like Obama, should actually learn from the success of their hero.

Sources:

“Revenues, Outlays, Surpluses, Deficits, and Debt Held by the Public, 1969 to 2008.” Congressional Budget Office. N.p., Mar. 2009. Web. 3 Feb. 2010. http://www.cbo.gov/sites/default/files/cbofiles/attachments/01-31-2012_Outlook.pdf