Thursday, May 06, 2004
The Democrat Myth of 1993
Here is the myth: Clinton tax increases reduced the budget deficits and led to economic growth. However, here's the problem: this isn't the case. Fortunately, I remember the politics of the era. In January of 1995 Clinton proposed a budget that reduced but never eliminated the deficit. The new Republican Congress held their feet to the fire and before you know it a little bit of discipline and strong economic growth got rid of deficits. While I give Clinton some credit (Clinton and a Republican Congress did well economically speaking), let's be honest. The 1993 proposal has very little impact.
Here is the myth: Clinton tax increases reduced the budget deficits and led to economic growth. However, here's the problem: this isn't the case. Fortunately, I remember the politics of the era. In January of 1995 Clinton proposed a budget that reduced but never eliminated the deficit. The new Republican Congress held their feet to the fire and before you know it a little bit of discipline and strong economic growth got rid of deficits. While I give Clinton some credit (Clinton and a Republican Congress did well economically speaking), let's be honest. The 1993 proposal has very little impact.
