How Did Bill Clinton Affect The Economy

The United States of America was in its lowest period when bill Clinton was elected on November 3, 1992 which made him in a critical situation and in front of a huge responsibility. His first and main correctional act is reducing the federal budget deficit which was the largest in American history ($290 billion). In fact, he started working on that with implementing higher taxes for the wealthy people and lower for the poor, reduction of tariffs and programs to increase federal government efficiency. According to the appendix A, President Bill Clinton’s policies were successful after moving from a $290billions federal deficit in 1992 to a surplus of $236 billion in 2001 when he left the presidency. The benefits were used to pay the national debt.

The successful reduction of federal budget deficit encouraged wall street which allowed the creation of 22 million jobs ( the highest number ever under a single administration) and reduced the unemployment rate from 7.3% on January 20, 1993 to 4.2 on January20,2001 (Appendix B), which explain the decrease of the poverty rate. He also maintained a GDP average growth rate of 3.8 which could be considered as a good result, comparing to the precedent presidents after the Second World War only 3 of them performed better than him. We can mention Truman (4.8), Kennedy (5.2) and Johnson (5.1). Plus, Federal spending decreased from 22.2 percent of GDP in 1992 to 18.4 percent in 2000. According to the Washington Post the inflation rate was stable during bill Clinton presidency. Both inflation rate and the core rate (which excludes gas and food expenditures) maintained an average rate of 2.6 percent (Appendix D). Clinton’s overall performances were satisfactory and continued to grow until 2000 to be recognized as a record of the longest uninterrupted economical