Fiscal Balance During the Clinton Years

Paper Summary:

This report introduces the issues of fiscal balance in terms of problems faced by the Clinton administration and identifies alternative solutions. The paper also looks at existing literature on the subject and related issues, such as Clinton's financial advice to Japanese leaders and various interpretations of political occurrences of the time. The methodology of the report concentrates on financial data derived from existing literature, with an eye on the reduction of bias through a balanced report. Additionally, the paper analyzes data and discusses questions of how balance was achieved and provides recommendations for the future in terms of fiscal policy that can be derived from extant data.

From the Paper:

"The reduction of deficit and fiscal balance was particularly highlighted in the later years of the Clinton administration, but it may have had roots in the beginning of the administration in terms of the background of the policies which went into effect regarding government spending and tax revenue. When Clinton came into office, he had ideas about overhauling spending which were soon put into practice so that spending could be increased and tax cuts for the wealthy would not be a big part of the program. There was significant dissonance between this vision, which also included extensive healthcare and welfare reform, and the vision of the mostly-Republican Congress which was in office for most of Clinton's years in office, and this also adds substantially to the
background of fiscal policy. For example, Clinton's programs were more likely to be slowed down in Congress by this type of system."

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