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Does The Economy Fair Better Under Democrats?

President Joe Biden and Vice-President Kamala Harris have promised to raise the economy. A successful run could give credence to the idea of an economy performing better under Democratic leadership. Is there any merit to this?

The Clinton’s

The U.S. Experienced A Surplus Under Bill Clinton

A surplus doesn’t tell the whole story

A surplus implies the government has extra funds. These funds can be allocated toward public debt, which reduces interest rates and helps the economy. A budget surplus can be used to reduce taxes, start new programs or fund existing programs such as Social Security or Medicare. A budget surplus can occur when growth in revenue exceeds growth in expenditures, or following a reduction in costs or spending or both. An increase in taxes can also result in a surplus.

Macroeconomics

Every year since 2001, the U.S. has had a deficit

Between 2001 and 2011, about two-thirds (68 percent) of the $12.7 trillions growth in federal debt has been due to new legislation. Forty percent of this legislative growth was the result of tax cuts enacted after January 2001, and 60 percent resulted from spending increases.

Enter the President Barack Obama Era

Ambient Reads

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