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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