Now have us believe that today’s superb economy and large federal budget surpluses are a result of their “New Economic Plan” (NEP). The NEP, enacted in 1993, consisted primarily of a huge tax rate increase and planned large budget deficits for the duration of a two-term Clinton presidency. President Clinton is touting the NEP because of his obvious concern for his legacy, and Mr. Gore is using the NEP as a primary argument for his election as President.1 The Gore-2000 web page contends:
“[Gore] cast the deciding vote for the 1993 Administration Economic Plan which
helped to eliminate the federal budget deficit and provided incentives to promote
economic growth.” During the first presidential debate in the 2000 campaign, the
vice president went further: “I had the honor of casting the tie-breaking vote to end
the old economic plan here at home and put into place a new economic plan that has helped us to make some progress, 22 million new jobs, the greatest prosperity ever.”
This paper is posted on the Web site of the Institute for Policy Innovation. Read it here.