The Clinton Economic Plan of the 1990's and Economic Growth: An Exercise in Contemporary Keynesian Economics

Posted: 11 Mar 2008

Date Written: March 10, 2008

Abstract

In 1992 when Bill Clinton was elected president of the United States the national annual deficit was projected to rise to more than $357 billion by the end of his first term in office. The total deficit was projected to rise to more than $3 trillion, the highest in United States history. To the surprise of most economists the United States entered a period of unprecedented economic growth and expansion, the result of a well structured economic stimulus plan. The Clinton economic strategy emphasized three key initiatives including: an economic stimulus package which focused on job creation, public investment aimed at increasing productivity and an aggressive deficit reduction initiative centered on spending cuts and tax increases designed to reduce long-term interest rates and spur private sector investment. This paper examines the Clinton Administration economic plan of the 1990's to determine the extinct to which it was responsible for the tremendous economic expansion. An extensive review of the philosophical and ideological approach embraced by the Clinton economic strategy is included in this assessment. This paper also evaluates the economic initiatives of the 1990's and highlights lessons learned from the strategy employed by the Clinton Administration. Finally, this paper examines the Clinton economic strategy of the 1990's to determine whether or not it is a useful model for future national economic development initiatives.

Keywords: economic development, economic strategy, economic growth, deficit, economic stimulus, deficit reduction

JEL Classification: A1, A00, A10, B4

Suggested Citation

McFayden, Elgie, The Clinton Economic Plan of the 1990's and Economic Growth: An Exercise in Contemporary Keynesian Economics (March 10, 2008). Available at SSRN: https://ssrn.com/abstract=1104926

Elgie McFayden (Contact Author)

Kentucky State University ( email )

400 East Main Street
Frankfort, KY 40601
United States
502-597-6665 (Phone)
502-597-5931 (Fax)

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