Bill Clinton's Impressive Economic Record
On February 2nd, 1998 (14 years ago today) President Bill Clinton introduced the first balanced budget in thirty years. This was part of an era of very impressive economic performance.
Five years earlier, in 1993, Clinton submitted a budget that would cut the deficit by $500 billion over five years by reducing $255 billion of spending and raising taxes on the wealthiest 1.2% of Americans. It also imposed a new energy tax on all Americans and subjected about a quarter of those receiving Social Security payments to higher taxes on their benefits.
Republican Congressional leaders launched an aggressive opposition against the bill and Republicans were united in this opposition. Every Republican in both houses of Congress voted against the proposal. It took Vice President Gore's tie-breaking vote in the Senate to pass the bill. After extensive lobbying by the Clinton Administration, the House narrowly voted in favor of the bill by a vote of 218 to 216.
The budget package expanded the Earned Income Tax Credit (EITC) as relief to low-income families. It reduced the amount they paid in federal income and Federal Insurance Contributions Act tax (FICA), providing $21 billion in relief for 15 million low-income families. Improved economic conditions and policies served to encourage investors in the bond market, leading to a decline in long-term interest rates.
Clinton's final four budgets were balanced budgets with surpluses, beginning with the 1998 budget, which was the first balanced budget since 1969. The surplus money was used to pay down the public debt by $452 billion, though the gross federal debt continued to increase. The economy continued to grow, and in February 2000 it broke the record for the longest uninterrupted economic expansion in U.S. history, which began during George H. W. Bush's presidency.
Following is a list of impressive and positive economic achievements that occurred during the Clinton Presidency:
1. Average economic growth of 4.0% per year, compared to average growth of 2.8% during the previous years.
2. The economy grew for 116 consecutive months, the most in history.
3. Creation of more than 22.5 million jobs—the most jobs ever created under a single administration, and more than were created in the previous 12 years. Of the total new jobs, 20.7 million, or 92%, were in the private sector.
4. Economic gains spurred an increase in family incomes for all Americans. Real median family income increased by $6,338, from $42,612 in 1993 to $48,950 in 1999 (in 1999 dollars).
4. Overall unemployment dropped to the lowest level in more than 30 years, down from 6.9% in 1993 to just 4.0% in January 2001. The unemployment rate was below 5% for 40 consecutive months.
5. Unemployment for African Americans fell from 14.2% in 1992 to 7.3% in 2000, the lowest rate on record. Unemployment for Hispanics fell from 11.8% in October 1992 to 5.0% in 2000, also the lowest rate on record.
6. Inflation dropped to its lowest rate since the Kennedy Administration, averaging 2.5%, and fell from 4.7% during the previous administration.
7. The homeownership rate reached 67.7% near the end of the Clinton administration, the highest rate on record. In contrast, the homeownership rate fell from 65.6% in the first quarter of 1981 to 63.7% in the first quarter of 1993.
8. The poverty rate also declined from 15.1% in 1993 to 11.8% in 1999, the largest six-year drop in poverty in nearly 30 years. This left 7 million fewer people in poverty than there were in 1993.
9. The surplus in fiscal year 2000 was $237 billion—the third consecutive surplus and the largest surplus ever.
10. As the result of welfare reform initiatives, welfare rolls dropped dramatically and were the lowest since 1969. Between January 1993 and September 1999, the number of welfare recipients dropped by 7.5 million (a 53% decline) to 6.6 million. In comparison, between 1981–1992, the number of welfare recipients increased by 2.5 million (a 22% increase) to 13.6 million people.
Five years earlier, in 1993, Clinton submitted a budget that would cut the deficit by $500 billion over five years by reducing $255 billion of spending and raising taxes on the wealthiest 1.2% of Americans. It also imposed a new energy tax on all Americans and subjected about a quarter of those receiving Social Security payments to higher taxes on their benefits.
Republican Congressional leaders launched an aggressive opposition against the bill and Republicans were united in this opposition. Every Republican in both houses of Congress voted against the proposal. It took Vice President Gore's tie-breaking vote in the Senate to pass the bill. After extensive lobbying by the Clinton Administration, the House narrowly voted in favor of the bill by a vote of 218 to 216.
The budget package expanded the Earned Income Tax Credit (EITC) as relief to low-income families. It reduced the amount they paid in federal income and Federal Insurance Contributions Act tax (FICA), providing $21 billion in relief for 15 million low-income families. Improved economic conditions and policies served to encourage investors in the bond market, leading to a decline in long-term interest rates.
Clinton's final four budgets were balanced budgets with surpluses, beginning with the 1998 budget, which was the first balanced budget since 1969. The surplus money was used to pay down the public debt by $452 billion, though the gross federal debt continued to increase. The economy continued to grow, and in February 2000 it broke the record for the longest uninterrupted economic expansion in U.S. history, which began during George H. W. Bush's presidency.
Following is a list of impressive and positive economic achievements that occurred during the Clinton Presidency:
1. Average economic growth of 4.0% per year, compared to average growth of 2.8% during the previous years.
2. The economy grew for 116 consecutive months, the most in history.
3. Creation of more than 22.5 million jobs—the most jobs ever created under a single administration, and more than were created in the previous 12 years. Of the total new jobs, 20.7 million, or 92%, were in the private sector.
4. Economic gains spurred an increase in family incomes for all Americans. Real median family income increased by $6,338, from $42,612 in 1993 to $48,950 in 1999 (in 1999 dollars).
4. Overall unemployment dropped to the lowest level in more than 30 years, down from 6.9% in 1993 to just 4.0% in January 2001. The unemployment rate was below 5% for 40 consecutive months.
5. Unemployment for African Americans fell from 14.2% in 1992 to 7.3% in 2000, the lowest rate on record. Unemployment for Hispanics fell from 11.8% in October 1992 to 5.0% in 2000, also the lowest rate on record.
6. Inflation dropped to its lowest rate since the Kennedy Administration, averaging 2.5%, and fell from 4.7% during the previous administration.
7. The homeownership rate reached 67.7% near the end of the Clinton administration, the highest rate on record. In contrast, the homeownership rate fell from 65.6% in the first quarter of 1981 to 63.7% in the first quarter of 1993.
8. The poverty rate also declined from 15.1% in 1993 to 11.8% in 1999, the largest six-year drop in poverty in nearly 30 years. This left 7 million fewer people in poverty than there were in 1993.
9. The surplus in fiscal year 2000 was $237 billion—the third consecutive surplus and the largest surplus ever.
10. As the result of welfare reform initiatives, welfare rolls dropped dramatically and were the lowest since 1969. Between January 1993 and September 1999, the number of welfare recipients dropped by 7.5 million (a 53% decline) to 6.6 million. In comparison, between 1981–1992, the number of welfare recipients increased by 2.5 million (a 22% increase) to 13.6 million people.