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September 27, 1999

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PRESIDENT CLINTON:
ANNOUNCING THE LARGEST SURPLUS IN HISTORY

"This triple-digit surplus is larger than projected, larger than last year's, and larger, in fact, than any dollar surplus in the history of the United States. It is a landmark achievement for our economy, and further proof that we're on the right road to prosperity."

President Bill Clinton
Monday, September 27, 1999

Turning Around Decades of Deficit to the Largest Surplus Ever In 1992, the deficit was $290 billion and projected to rise over $400 billion by 1999. In 1993, President Clinton put in place a three-part economic strategy of maintaining fiscal discipline; investing in the American people; and opening markets abroad. As a result, instead of facing a more than $400 billion deficit, the Administration estimates that we will have a surplus of at least $115 billion the largest dollar surplus in history, even after adjusting for inflation. This announcement represents:

  • the first back-to-back surpluses since 1956-57; and
  • seven years in a row of fiscal improvement the first time in US. history.

Reducing Federal Spending While Continuing to Invest in the American People. President Clinton's economic strategy of fiscal discipline has contributed to a reduction in spending, while allowing increased investments in education and other vital areas. During the Clinton-Gore Administration:

  • Spending has dropped from 225 percent of GDP in 1992 to less than 19.3 percent of GDP in 1999;

  • Spending as a share of the economy has declined every year under President Clinton and is now the lowest in a quarter century;

  • Federal spending as a percentage of the economy has been lower in every year for which President Clinton submitted a budget than for any year under either of the two preceding Administrations; and

  • Discretionary spending, adjusted for inflation, declined under President Clinton and rose under the previous two Administrations

Creating a Brighter Economic Future for America's Working Families. Here's what the improved fiscal situation means to a typical American family:

  • A family with a home mortgage of $100,000 might expect to save roughly $2,000 per year in mortgage payments equivalent to an effective tax cut of roughly $2,000 per year in lower interest costs;

  • Interest payments on car payments and credit cards are also lower than they would have been without fiscal discipline; and

  • Rising investment has contributed to an increase in labor productivity


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September 27, 1999

September 30, 1999: Public Education

September 30, 1999: Progress for Income and Poverty