Quote:
Originally Posted by Archaea
The economy is largely a psychological ploy. If Wall Street and investors believe they will net returns, then manufacturing increases and risk ventures are undertaken.
He "brought" down the deficit by acceding to some of the demands of Republicans, and raising taxes to exorbitant levels. You give Bill far too much credit. Structurally, he did not set into place policies that benefited the economy.
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There was real efficiency gains and productivity growth during the Clinton years. Bubble? Some.
Studies have shown the rich people's labor supply is insensitive to changes in the tax code. So to raise their rates to 39% is consonant with empirical findings. And lo and behold, it worked amazingly well, as the economy chugged along. Innovation surged from the birth of the internet. Clinton's policies worked spectacularly.
And yes, you are correct and ceding to Republican demands. Clinton had credibility to ask Republicans forgo tax cuts for the rich because he gave up liberal demands for more infrastructure spending. Like Alan Greenspan, who is a libertarian, said, Clinton created a deficit-cutting competition between Democrats and Republicans. Those days are long gone.
But he didn't cede to ALL Republican demands. The original GOP version of the welfare reform bill didn't provide child care, which mothers need in order to work. The GOP bill would've been a disaster. The final one Clinton signed still had a few draconian GOP provisions in it, but it was workable. Republicans just want to throw widows and poor people out onto the street so they can starve, while Clinton wanted them to find work and become self-sufficient.
And then Bush comes in and blows the deficit out of control again, just like Reagan did. Even this year, every Republican candidate (except possibly Kasich) had irresponsible budget plans.
Hillary might be corrupt, but she is the only one able to bring back the Clinton years.