Clintonomics
The term Clintonomics, a portmanteau of Clinton and economics, was used to describe the economic policies of 90s USA President Bill Clinton. Clinton assumed office at a tail end of a recession, and the economic theories he utilized and implemented are claimed by his supporters to have led to a strong recovery.
Clinton-Gore Economic Policy Dramatically Improved the Economy
The strategy was outlined in the following three points:
Establishing
fiscal discipline, eliminating the budget deficit, keeping interest rates low,
and spurring private sector investment.
Investing in people through education,
training, science, and research.
Opening foreign markets so American workers
can compete abroad.
The effect of this was
Record budget deficits at the start of the presidency became record surpluses,
Strong Economic Growth
Unemployment at Its Lowest Level in a generation
Lowest Inflation since the 1960s:
The poverty rate declined from 15.1 percent in 1993 to 11.8 percent
Extended Medicare Solvency from 1999 to 2025.
Rubinomics,
a portmanteau of Rubin and economics, was originally used to describe the economic
policies of President Clinton, named after Rubin a former United States Secretary
of the Treasury. Emphasizes the effect that balancing the government budget has
on long term interest rates. Taxes should match government spending in the long
run, and deficit financed tax cuts are an ineffective way to increase growth.
During the early 90's, long term interest rates remained stubbornly high even
as the Federal Reserve cut the Federal Funds rate. Rubin and most other economists
(including Alan Greenspan) attributed the high yield curve to an inflation premium
that bond traders were demanding.
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