Economic Crisis Awakes Old Myths: Clinton’s Balanced Budget Surplus

The recent national economic crisis has given new life to the liberal Clintonian myth that the ex-President left the current President a perfectly balanced budget and great economy. In a recent exchange with a co-worker, I found out that apparently the only people to wreck the budget were Reagan and Bush Jr. As usual, the accusations were bandied about with no documentation and as if the lies were really gospel. First off, this person is an intelligent, well-spoken, rational person who has not been too far removed from my own views on many non-political issues, or at least has not portrayed such in the few months I have worked with him. Secondly, there was never, ever, at any time during his presidency a surplus or balance budget under William Jefferson Clinton.

To debunk this myth, all that is needed is a trip to the U.S. Treasury website. They keep a record of such budgetary matters on a daily and constant basis. In addition, you need to go to The article you will find is well written, lucid and very direct in instruction to explain the reasons behind how a political view a budgeting is not always the accurate view. I have followed the links and the instructions and found out via independent sources that the claims made in the article are in fact true.

Debunking the mythology of modern liberal truths is only the first part. The most important part is the redirecting of the whole thought process. How is it that a person can believe that several billion, now trillion, dollars in debt can simply vanish with spending cuts in military, and tax increases on the wealthy and successful?

The simplistic view of classism and anti-war hypocrisy combined with racial fear mongering and good-old-fashioned white guilt are the best snares for a liberal leaning person. When Clinton cut spending on the military, he left us vulnerable to our enemies abroad, who proved time and time again their intent on our destruction and their capability for causing harm. When Clinton told Fannie Mae and Freddie Mack to start pumping out no documentation loans with low option arms so that people who clearly couldn’t afford a house would become home owners, he let us get into a financial crisis of immeasurable potential for economic disaster. Finally, when Clinton panders to the minority community and allows for hundreds of thousands of illegal, undocumented, unknown people to come across the borders without abatement, he further encourages a social burden on the taxpayers that has become too large to ignore.

Budget and financial crisis does not happen overnight. In fact, the groundwork for the current problems has been happening since 1972 and the Carter administration’s need to push home loans to obviously under qualified applicants. The ex-chair of the Fed, Alan Greenspan, along with others in the financial community have watched both parties take the helm and do nothing to stem the tides. Instead of bringing up old myths and legends about how government involvement in the lives of it’s citizens is paramount to the nation’s survival, we should be learning that it was government involvement that started the troubles in the first place.


When speaking of the national debt, economists and news reporters generally mean only money the government owes to others, not to itself. Congress, however, has enacted a “Debt Limit” that applies to the combined total of the debt owed to outsiders, technically called “debt held by the public,” and to itself, termed “intergovernmental holdings.” The latter is made up mostly of the Social Security and Medicare trust funds. The total of the two debts is the “total public debt outstanding.”

Intragovernmental Holdings are mostly made up of the Government Account Series (GAS) held by government trust funds, revolving funds, and special funds. Debt Held by the Public includes all federal debt held by individuals, corporations, state and local governments, foreign governments, and GAS deposit funds, such as the Thrift Savings Plan.

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