What is ‘Clintonomics’
Clintonomics refers to the economic philosophy and policies promulgated by William Jefferson Clinton, who was president of the United States from 1993 to 2001. Clintonomics applies to the fiscal and monetary policies employed during the period, which was marked by shrinking budget deficits, low-interest rates, and globalization. The primary form of globalization was in the form of the passage of the North American Free Trade Agreement (NAFTA), and encouraging China’s accession to the World Trade Organization (WTO).
BREAKING DOWN ‘Clintonomics’
Bill Clinton came to office while the United States was still recovering from the Great Recession that began in 1991. The country was suffering from rising interest rates and declining prices of U.S. government debt as a result of growing budget deficits. His first significant piece of economic legislation, the Deficit Reduction Act of 1993, enacted budget cuts and tax increases on wealthy Americans, a move that was politically unpopular, but which calmed bond markets.
The effort at deficit reduction allowed Federal Reserve Chair, Alan Greenspan, to keep interest rates…