JNB
Jr. Member
Posts: 395
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« on: December 15, 2003, 06:43:38 PM » |
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Clinton was in the right place at the right time and had a amazing string of luck on both the international and economic fronts. When Clinton came into office, the major international threat that the US faced, the USSR was gone, and it looked like the Middle East was on the mend, the only real problem at the time was Bosnia, and that was a small country whose impact was strictly local.
As for the economic front, the fact a GOP congress was elected in 94 held the line of Clintons spending hikes(conversely he held the line on the GOP excessive tax cut proposals) so the combination of the two produced a unusual amount of fiscal restraint. This fiscal restraint produced dropping intrest rates. As for inflation, the fact Japan for most of the 90s was mired in various recession caused inflation, especially on fuel, to be far lower than it otherwise would have been, and Japans deflation led the Japanese to buy record amounts of US tresuries, further taking pressue off intrest rates.
The 90s economically in part was real, but also was in part illusion, the economic stats from the 90s, especially when one measures productivity gains(and these stats are still quite suspect because the Clinton era methods of taking them are still in place). History will show Clinton not as a horrible president, but not as a great one either, he will be viewed as somthing equivlent to William Mckinley. On the other hand, Clintons insane strong dollar policy under Robert Rubins advice, the trade gap that exploded and the illegal immigration problems that got far worse are problems that will impact the US for decades to come.
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