Posted on 07/18/2008 1:16:13 PM PDT by reaganator
For years I have heard from many sources that the Clinton Administration was able to create a budget surplus and then the Bush Administration came in and squandered this surplus.
This is repeatedly reported so someone tell me how my perception of this issue is in error. Here's what seems to be apparent to me:
By dramatically defunding the military and intelligence agencies the Clinton Administration was able to show on paper a projected 10 year federal budget surplus. The terrorists attacks of September 11th occured. The Bush Administration needed to dramatically refund the defunded military and intelligence agencies. This is how the the Bush Administration "squandered" the surplus.
Now, I must be wrong in my thinking because I do not hear this reported any where. I'd appreciate if someone will point out my flaws in thinking. Thank you.
Technically, the executive branch cannot spend money, only the Congress can and all money bills must originate in the House.
Missed connection 1: The dot-com bubble poured tremendous amounts of money into the national treasury, when that bubble burst, (upon which much of Clinton’s supposed future surpluses were based on) it collapsed.
But to say the Bush Administration were spendthrifts is just...ignoring reality. While the treasury increased income, money was spent at an incredible rate. The cost of congress went from a billion dollars a year to presently close to six billion dollars. A 600 percent increase in seven years. Pork spending has skyrocketed, and continues to increase while everyone points fingers at everyone else.
So while the myth of the Clinton surplus does continue, we do not stand innocent in writing checks our grandchildren’s great grandchildren will have to pay.
Works for me...
You forgot to add that Clinton passed the largest tax increase in our country’s history. (after saying he wouldn’t raise taxes)
New defense spending for the war on terror - defense spending in total for that matter - is dwarfed by skyrocketing entitlement costs.
Faced with this, Bush responded by pushing through the largest entitlement expansion in 40 years.
When I hear a moonbat launch into the “CLINTON SURPLUS!” Diatribe, I simply ask them If I Take my Mortgage off-budget, can I declare a surplus, like Clinton did?
Yes. He referred to this as the "peace dividend". Obama plans to cut military spending too. Abandoning weapons development, cutting back on NASA, and working towards disarming our nuclear arsenal.
If we get rid of our nukes, it makes Iran and Korea's handful of eventual nukes that much more "powerful".
Define "cost of congress" please. That much to operate congress?
Clinton downsized the standing military and called up the National Guard into service.
That’s true, plus the economy hit a recession just before Clinton left office, 9/11 hit, and the revenues to the Treasury declined.
So Bush inherited a spending problem (gotta fix that Clinton defunding) and a revenue problem (recession underway, 9/11).
How much congress budgets to itself to run congress.
“Peace” is the “dividend” on our military investment.
Don’t forget that he retroactively raised taxes even on the dead. They vote for him and this is the thanks they get.
True. The “peace dividend” was also used in the context of “The Cold War is over, we can spend that money on other things now”.
Easy: You are using common sense and logic to explain the facts of reality. These are unacceptable methods of discussion and thinking in the world of Democrats.
In reality, the government keeping a budget surplus is as bad, if not worse, than running a deficit. A budget surplus keeps money out of the economy. This would be like a farmer holding all the corn seed, neither planting it, nor eating it.
Obviously, running as close to a break-even budget is ideal, but a small debt (if the debt is based on capital expenditures versus recurring outlays) is better than a surplus in that a debt will prop up the bond market.
Correction: Congress budgeted 4.7 billion for itself, I believe the remaining 1.3 billion comes from other funds.
What surplus? The national debt grew every quarter of Clinton’s presidency.
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