Skip to main content Accessibility help
×
Home
  • Print publication year: 2012
  • Online publication date: December 2012

5 - The Clinton Strategy – Balancing High

Summary

During the early 1990s, the deficit problem appeared to have grown worse. The FY 1990 deficit of $221 billion matched the largest deficit of the Reagan years, and the $290 billion FY 1992 deficit set a new record. In fact, a dramatic fiscal turnaround was soon underway, as a nearly three-decade-long streak of consecutive deficits ended in 1998. Two years later, the budget surplus was more than $236 billion, and the Congressional Budget Office (CBO) budget outlook projected surpluses of more than $4.6 trillion over the next decade.

The policy key to this reversal was contained in two multiyear reconciliation bills. The Omnibus Budget Reconciliation Act of 1990 (OBRA 1990), passed by a Democratic Congress and signed by President George H. W. Bush, was a nearly $500 billion deficit-reduction package of tax increases, spending cuts, and budget enforcement provisions. The Omnibus Budget Reconciliation Act of 1993 (OBRA 1993), engineered by President Bill Clinton, was unanimously opposed by congressional Republicans. It, too, increased taxes and by considerably more than the 1990 budget agreement. OBRA 1993 also included spending cuts and budget enforcement provisions as part of its approximately $500 billion in deficit reduction for fiscal years 1994–1998.

Congressional Budget OfficeThe Budget and Economic Outlook: Fiscal Years 2002–2011Washington, D.C.Congressional Budget Office 2001 xv
Congressional QuarterlyCongressional Quarterly Almanac, 1989Washington, D.C.Congressional Quarterly 1990 83
Congressional Budget OfficeThe Economic and Budget Outlook: Fiscal Years 1991–1995Washington, D.C.Congressional Budget Office 1990 xvii
Office of Management and BudgetBudget of the United States Government, Fiscal Year 1991Washington, D.C.Government Printing Office 1990 21
Congressional Budget OfficeAn Analysis of the President's Budgetary Proposals for Fiscal Year 1991Washington, D.C.Congressional Budget Office 1990 1
Congressional Budget OfficeThe Economic and Budget Outlook: An UpdateWashington, D.C.Congressional Budget Office 1990 xiii
Congressional QuarterlyCongressional Quarterly Almanac, 1990Washington, D.C.Congressional Quarterly 1991 130
Congressional Budget OfficeThe Economic and Budget Outlook: Fiscal Years 1992–1996Washington, D.C.Congressional Budget Office 1991 114
Congressional QuarterlyCongressional Quarterly Almanac, 1992Washington, D.C.Congressional Quarterly 1993 75
Ippolito, Dennis S.Why Budgets Matter: Budget Policy and American PoliticsUniversity ParkPennsylvania State University Press 2003 254
Congressional Budget OfficeThe Economic and Budget Outlook: Fiscal Years 1994–1998Washington, D.C.Congressional Budget Office 1993 xv
Morgan, Iwan W.The Age of DeficitsLawrenceUniversity Press of Kansas 2009 163
Ippolito, Dennis S.Budget Policy and the Future of DefenseWashington, D.C.Institute for National Strategic Studies/National Defense University Press 1994 84
Congressional QuarterlyCongressional Quarterly Almanac, 1993Washington, D.C.Congressional Quarterly 1994 85
Congressional Budget OfficeThe Economic and Budget Outlook: An UpdateWashington, D.C.Congressional Budget Office 1993 28
Congressional Budget Office 1993 29
1993
Congressional QuarterlyCongressional Quarterly Almanac, 1995Washington, D.C.Congressional Quarterly 1996 2
Congressional Budget OfficeThe Economic and Budget Outlook: An UpdateWashington, D.C.Congressional Budget Office 1995 xvii
Congressional Budget OfficeThe Economic and Budget Outlook: Fiscal Years 1998–2007Washington, D.CCongressional Budget Office 1997 xviii
Office of Management and BudgetBudget of the United States Government, Fiscal Year 1998Washington, D.CGovernment Printing Office 1997 3
Congressional QuarterlyCongressional Quarterly Almanac, 1997Washington, D.C.Congressional Quarterly 1998 2
Congressional Budget OfficeThe Economic and Budget Outlook: An UpdateWashington, D.C.Congressional Budget Office 1997 35
1997 40
Office of Management and BudgetBudget of the United States Government, Fiscal Year 1999Washington, D.CGovernment Printing Office 1998 3
Congressional QuarterlyCongressional Quarterly Almanac, 1988Washington, D.CCongressional Quarterly 1989 6
Office of Management and BudgetBudget of the United States Government, Fiscal Year 2000Washington, D.CGovernment Printing Office 1999 14
Congressional QuarterlyCongressional Quarterly Almanac, 1999Washington, D.C.Congressional Quarterly 2000 21
Congressional QuarterlyCongress and the Nation, 1997–2001Washington, D.C.Congressional Quarterly 2002 461
Congressional Budget OfficeHistorical Effective Tax Rates, 1979 to 2005Washington, D.C.Congressional Budget Office 2008