Sunday, April 11, 2004

The Myth of the Clinton Economy

Clintonites like to talk about how great the economy was under their administration but Clinton was just a lucky bystander to the prosperity that occurred during his tenure. In the last few months of Bush senior's administration before Clinton won the election, I heard many economists saying the economy was about to get better and whoever won the election would unjustly get the credit.

The prosperity during the Clinton administration was mainly due to the internet revolution and advances in digital electronics. That was the period of time when the internet came into existence and companies were spending madly on technology. That was the period when hard drives went from a few megabytes to a few gigabytes. When digital cameras were becoming popular. It was the ferocious spending on technology that gave us the prosperous economy. It was the large salaries and huge capital gains in the stock market that gave the government budget surplusses. This also happened to be a relatively peaceful time in the world. Clinton had nothing to do with any of this. He was just a bystander.

The truth is, Clinton was extremely lucky because he happened to be president at a time when the economy was prosperous and the world was peaceful. Any smooth-talking used-car salesman could have been a successful president during that period in history. Statements that Clinton's approach or the Democrat's platform led to the prosperity under Clinton are simply deceitful.


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