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Re: Where did the Clinton surplus come from? 

By: zzstar in FFFT3 | Recommend this post (4)
Fri, 17 Oct 14 6:40 PM | 109 view(s)
Boardmark this board | Food For Further Thought 3 		Msg. 03442 of 65535
(This msg. is a reply to 03436 by Zimbler0)
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Hardly. Some of us here can read and understand. That's Bush apologist talk.

"This shift $780 billion drop was not due to policy changes but rather to the extra growth and tax collections spurred by the stock bubble."

So the growth from the "stock bubble" was some kind of .....virtual growth, not real? As for the tax collections, more money more tax collections, from growth too, not from the market alone.

Try again. We're not stupid. We were there. People had money, jobs, and a good life, despite the vitriol, again, against another President who did well.


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The above is a reply to the following message:
Where did the Clinton surplus come from?
By: Zimbler0 in FFFT3
Fri, 17 Oct 14 5:32 PM 		Msg. 03436 of 65535

I realize this sort of stuff is almost impossible
for various assorted denizens of this place to
understand . . . but, please, do try.
Zim.

>>>

http://www.cepr.net/index.php/blogs/beat-the-press/the-stock-bubble-created-the-budget-surplus-not-bill-clintons-tax-and-spending-policies

In short, the hero of the budget surplus story was the stock bubble, not President Clinton's tax cuts and budget restraint. This is important not only in dishing out praise for the surplus, it is also essential to a proper understanding of the economy.

Bubbles are not sustainable, by definition. The stock bubble began to burst in 2000. By the summer of 2002 stocks had fallen to roughly half of their peak values destroying $10 trillion in wealth. This gave us a recession which, although officially short and mild, led to the longest period without net job creation since the Great Depression (until the current downturn).

>>>

(Much more at the link. Zim.)

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