A Smaller, But More Progressive, Government
After 12 Years When The Republicans Exploded the Deficit and Quadrupled the National Debt, President Clinton And Vice President Gore Have Eliminated The Deficit, Cut Federal Spending, and Cut the Federal Workforce to Its Smallest Level in 36 Years.
From An Era of Deficits to An Era of Surpluses:
· First Balanced Budget in A Generation. After the deficit exploded under Presidents Reagan and Bush -- rising from $74 billion in 1980 to $290 billion in 1992 -- President Clinton and Vice President Gore put in place a bold new Economic Plan that has helped cut the deficit and strengthen the economy. When President Clinton and Vice President Gore took office, CBO projected the deficit to be $404 billion this year and heading higher. Last year, we had the first budget surplus since Neil Armstrong landed on the moon: almost $70 billion. This year, the Administration projects that we will have a $79 billion surplus --the largest dollar surplus in history and the largest as a share of our economy since the 1950s.
· Because of Lower Deficits From the 1993 Economic Plan and the 1997 Balanced Budget Agreement, The Federal Government Has Already Saved $1.8 Trillion on the National Debt. Through the deficit reduction from the 1993 Economic Plan and the 1997 Balanced Budget Agreement, the national debt will be $1.8 trillion lower this year compared to what was expected.
· In 1999, Government Will Borrow $483 Billion Less Than Projected When Clinton Took Office. When President Clinton took office, the CBO projected that the 1999 deficit would be $404 billion --now we project it to be $79 billion -- that's a $483 billion swing. In 2002, CBO projected the deficit would be $579 billion, and heading higher. Now, we project a surplus of $187 billion for 2002 -- that's a swing of $766 billion that the government will not have to borrow from the private sector.
After Federal Workforce Increased Under Reagan/Bush, It Will Be Smallest in 36 Years Under the Clinton-Gore Administration:
· The Smallest Federal Workforce in 36 Years. The federal bureaucracy increased from when President Reagan took office to when President Bush left office. Since President Clinton took office, the federal workforce has been cut by 365,000 workers, giving us the smallest workforce in 36 years. As a share of total civilian employment, the Federal workforce is the smallest since 1933.
After Spending Rose Under Reagan/Bush, It Will Be Lowest in 25 Years Under the Clinton-Gore Administration:
· In 1999, Spending As A Share of GDP Will Be Lowest in 25 Years. In 1999, Federal spending as a share of GDP is expected to be 19.7 percent -- that's its lowest level since 1974. Since President Clinton took office, spending as a share of the economy has fallen from 22.5 percent in 1992 to 19.7 percent in 1999. Under Presidents Reagan and Bush, spending as a share of GDP increased, rising from 21.7 percent in 1980 to 22.5 percent in 1992.
· In 1999, Lowest Discretionary Spending -- As Share of GDP -- In 35 Years. Since President Clinton took office, discretionary spending as a share of the economy has fallen from 8.7 percent in 1992 to 6.6 percent in 1999 -- that's the lowest level since 1962 when discretionary spending was first split out. Real discretionary spending has almost fallen 2% per year under President Clinton. This compares to real discretionary spending growth of one percent per year under Presidents Reagan and Bush.
· Under Clinton, Non-Defense Discretionary Spending Down. Since President Clinton took office, non-defense discretionary spending as a share of the economy has fallen from 3.8 percent in 1992 to 3.5 percent in 1999.
· Lower Government Spending -- As Share of GDP -- Than Any Major Economy in World. According to the OECD, the U.S. has lower total government spending -- Federal, state, and local -- as a share of GDP than any major economy in the world.