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View Diary: Why Clinton's Economy Was Better (174 comments)

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  •  asdf (6+ / 0-)

    Personally, I think every president should go to Wall Street, sit down with about 20 people from all the big firms and figure out which one they want in Treasury.  The difference it makes in unbelievable.

    "You think you can intimidate me? Screw you. Choose your Weapon." Eliot Spitzer

    by bonddad on Thu May 25, 2006 at 12:57:20 PM PDT

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    •  Because, Of Course . . . (10+ / 0-)

      . . . so much of the behavior of the world's major financial markets is based not on past results, but future expectations.  And for the markets -- and the economy generally -- to move upward, confidence in the stability of those expectations is key.  When trying to predict how everything might look some years out into the future (medium-term, not short-term horizon), the best ally anyone can have is the knowledge that there are adults running the show, and that they have a game plan that has both produced positive historical outcomes as well as conforming to generally accepted macroeconomic theories.

      If Wall Street is convinced of this, they are able to plan lending and investment strategies to span a decade-long period instead of focussing only on the next few fiscal quarters.  And when that happens, that will tend to accentuate any declines in long-term interest rates and growth in the dollar (relative to other currencies).  We become a nice, safe place in which the world can happily place its capital.

      The Clinton economic team had these qualities in abundance; the Bush team is an embarrassment in this regard.

      •  Exactly (0+ / 0-)

        "You think you can intimidate me? Screw you. Choose your Weapon." Eliot Spitzer

        by bonddad on Thu May 25, 2006 at 01:26:25 PM PDT

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      •  good point (2+ / 0-)
        Recommended by:
        The Maven, Coherent Viewpoint

        And a good counter to the tech boom talking point.  It was not so much a boom in the tech industry, but a boom in confidence and that people would be spending.  Confidence goes down and websites selling stuff go bust.

        Impeach Gary Bettman

        by Edanger6 on Thu May 25, 2006 at 01:57:44 PM PDT

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        •  In All Likelihood (4+ / 0-)

          Much of the reason that the tech boom occurred was due to the foundation laid down by the Clinton economic team.  They made it clear pretty much from the get-go that putting the nation's fiscal house in order was going to be the top priority -- thus, the tax hikes (which made the code more progressive) to increase federal revenues while simultaneously keeping a close eye on spending (certainly notable in contrast to the Bush/GOP congress increases in discretionary spending the past 5+ years).

          Once the financial markets were reassured that economic policy and the Treasury Department were not being run by reckless, wanton spenders, but rather by fiscal conservatives (in the traditional, positive sense of the term), the spigots for capital were turned on.  There was no reason to be concerned that the administration was mortgaging away the future.  And we had a very nice run where, indeed, a rising tide did lift all boats.

          The current clown-car crew, by contrast, has shown a remarkable inflexibility in its policies (ever-lower taxes are always good), while frequently shifting its reasoning for those policies.  It would be hard to conceive of a more dangerous combination, and that goes a long way toward explaining the dire circumstances we find ourselves in right now.  We may not be headed for a horrific crash; rather, the prospect of a lengthy, seeping decline becomes more probable with each passing day.

        •  The tech bubble had a silver lining (0+ / 0-)

          It may have been speculative, but the result was that there was a lot of money available for minor players with big ideas. A lot of ideas went bust, but other innovators that are now ubiquitous may have never had the chance if there hadn't been a bit of "irrational exuberance."

          To claim secular societies are rejecting God, is to concede that religious societies are rejecting reality.

          by Kudos on Thu May 25, 2006 at 04:40:32 PM PDT

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    •  All hail Wall Street (0+ / 0-)

      as the friend of the median class.


    •  Not sure Wall Street... (1+ / 0-)
      Recommended by:
      Sam I Am

      so much as people who know a thing or two about how business and the economy really work and whose business "success" was not based on the investment of their fathers friends and government largesse.

      Now if you look at the pool of people who know what they ar doing when it come sto economic policy there is a good chance a disproporionate number are working on Wall Street because that is where you work when you know a thing or two about economics and finance.

      Now you just have to separate the good ones from the idiots and scum who are there just to make a buck.

    •  even as president-elect, he did the right thing - (4+ / 0-)

      when he convened his Economic Summit.  Clinton told reporters he planned to invite a cross-section of experts to discuss "the gravity of the situation, deal with what our options are, get as many good ideas as I can."

      So, what's better: The Decider?  Or, A Thinker?  I'll take a thinker, any day.

      Of course, if you present this diary to a Republican they will tell you that business cycles run a natural course of ups and downs, Clinton was lucky to "ride the upswing... blah blah blah..." and still argue that tax cuts work.  But when you get right down to it, the economic philosophy of the Democratic party has historically outperformed that of the GOP.

      "pulp is fiction, blogs are hope, long live electricity"

      by dash888 on Thu May 25, 2006 at 02:33:14 PM PDT

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