- Nov 17, 2009
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No, Bill Clinton Didn't Balance the Budget | Cato Institute
Newt Gingrich and company for all their faults have received virtually no credit for balancing the budget. Yet todays surplus is, in part, a byproduct of the GOPs single-minded crusade to end 30 years of red ink. Arguably, Gingrichs finest hour as Speaker came in March 1995 when he rallied the entire Republican House caucus behind the idea of eliminating the deficit within seven years.
We have a balanced budget today that is mostly a result of 1) an exceptionally strong economy that is creating gobs of new tax revenues and 2) a shrinking military budget. Social spending is still soaring and now costs more than $1 trillion.
Skeptics said it could not be done in seven years. The GOP did it in four.
Now let us contrast this with the Clinton fiscal record. Recall that it was the Clinton White House that fought Republicans every inch of the way in balancing the budget in 1995. When Republicans proposed their own balanced-budget plan, the White House waged a shameless Mediscare campaign to torpedo the plan a campaign that the Washington Post slammed as pure demagoguery. It was Bill Clinton who, during the big budget fight in 1995, had to submit not one, not two, but five budgets until he begrudgingly matched the GOPs balanced-budget plan. In fact, during the height of the budget wars in the summer of 1995, the Clinton administration admitted that balancing the budget is not one of our top priorities.
Actually, the Republicans never balanced it either. The borrowed from intragovernmental holdings to "balance" the budget and left IOUs they never paid back.