Quote:
Originally posted by Spanky
Dems keep referring to this act was so significant. During this year we increased spending but increased taxes even more. After the Republican took control we were able to get rid of the rest of the deficits by not raising taxes (and even cutting some). After the 1993 budget act long term interest rates stayed high (I think they even increased). It was only after a Repub congress did long term interest rates come down and growth really picked up thereby balancing the budget.
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We've had this discussion recently. You're wrong.
http://www.federalreserve.gov/releas...a/m/tcm30y.txt
The 30 year rate in November 1992 was 7.61%. In January 1993 it was 7.34%, and it dropped to 6.81% by June 1993 and to 6.25% by December 1993.
eta There was a spike in interest rates in 1994 that economists generally (I think) attribute to worldwide economic factors. One could, I suppose, blame it on Clinton, but that doesn't change the fact that the bond traders liked his deficit reduction plan -- which passed by one vote in 1993.
