the Largest Surplus in History

[Max Sawicky]

>>>>
Turning Around Decades of Deficits to Achieve a Budget Surplus of At
Least $115 Billion - the Largest Surplus Ever.  In 1993, President
Clinton put in place a three-part economic strategy to cut the deficit
to help reduce interest rates and spur business investment; to invest in
education, health care, and technology . . .
>>>

mbs:  As share of GDP, Clinton spends less than George Bush
on non-defense public investment.


>>> . . .
Spending Restraint Has Been Key to Ushering in an Era of Surpluses

-     Federal spending smallest share of economy since 1974.  The
spending restraint under President Clinton has brought spending down
from 22.5 percent of GDP in 1992 to less than 19.3 percent of GDP in
1999.  . . .
>>>>>>>>>>>>>>>>

mbs: According to Congressional Budget Office, cumulative deficits
from FY93-98 inclusive were projected at $1,849 billion and
came in at $682 billion.  Of the $1,167 billion reduction,
only $194 billion can be attributed to legislated reductions
in spending, and of that only $63 billion to discretionary
spending (which means the budget caps were completely
inconsequential).  The revenue effect -- Bill's big big
tax increase in 1993 -- was $230 billion.


>>>> . . .
These Surpluses Have Led to Debt Reduction and Helped Strengthen of the
Economy.
>>>

mbs: Private Investment/GDP right now is about where it was in 1992,
before the Glorious Deficit Reduction crusade.


>>>
Lower Mortgage Rates And A Brighter Economic Future.  Here?s what the
improved fiscal situation means to typical families:

-     Lower interest rates provide the effect of a $2,000 tax cut to
families with a $100,000 mortgage.  . . .
>>>>

mbs:  Except that neither CBO nor the Administration project
falling rates over the next decade, notwithstanding their
projected liquidation of the national debt!