THE CLINTON-GORE ECONOMIC RECORD:
WHAT A DIFFERENCE SEVEN YEARS MAKES
June 26, 2000
After seven and a half years, the results of President Clinton and Vice President Gore's economic leadership for the American people are clear. In 1992, when Bill Clinton was elected President, the American economy was barely creating jobs and wages were stagnant. His bold, three-part economic strategy focused on establishing fiscal discipline; investing in education, health care, science and technology; and opening foreign markets so that American workers have a fair chance to compete abroad. Seven and a half years later the results of this strategy are clear:
Deficits Replaced By Surpluses: Keeping Us On Track to Be Debt Free by 2012
· 1992. The deficit was $290 billion the highest dollar level in history. When President Clinton took office, the Congressional Budget Office projected the deficit would grow to $455 billion in 2000.
· Today. In 1999, we had a budget surplus of $124 billion the largest dollar surplus on record. This year the Administration forecasts a surplus of $211 billion. This is $666 billion less drain by the government on private financial markets than projected when President Clinton and Vice President Gore took office. With the President's plan, we are now on track to eliminate the nation's publicly held debt by 2012.
Jobs Are Up: 22 Million Created Since January 1993
· 1981-1992. During President Clinton and Vice President Bush's three terms combined, the economy created only 18.5 million new jobs, despite the growth of the labor force from the maturation of the baby boom. Only 2.5 million jobs were created under President Bush, with nearly half of them in the public sector.
· Today. The economy has created 22.2 million new jobs since January 1993. This is the most jobs ever created under a single President. There has been an average of 255,000 jobs created per month -- a faster rate than under any President. And 19.9 million of the new jobs were created in the private sector, the highest share since Harry Truman was President (excluding temporary Census workers).
Faster Economic Growth: 3.9 Percent Per Year
· 1981-1992. The economy grew an average 1.7 percent per year under President Bush and 2.8 percent per year during the Reagan-Bush years.
· Today. Since President Clinton and Vice President Gore took office, growth has averaged 3.9 percent per year.
Private-Sector Growth Is Up: 4.5 Percent Per Year
· 1981-1992. The private sector of the economy grew 2.9 percent annually from 1981-1992.
· Today. The private sector of the economy has grown 4.5 percent annually since 1993.
Equipment and Software Investment Is Growing Faster Than Ever
· 1981-1992. Real equipment and software investment rose just 3.8 percent annually during the previous Administration, and only 4.7 percent annually for the entire Reagan-Bush period.
· Today. Real equipment and software investment is up 12.6 percent per year under President Clinton -- faster than any Administration on record. We have seen seven consecutive years of double-digit growth in equipment and software investment, for the first time on record.
Government Spending: Lowest in Over Three Decades
· 1981-92. Under Presidents Reagan and Bush, Federal government spending as a share of the economy increased from 21.6 percent in 1980 to 22.2 percent in 1992.
· Today. Under President Clinton, Federal government spending as a share of the economy has been cut from 22.2 percent in 1992 to a projected 18.5 percent in 2000 -- its lowest level since 1966.
Taxes for Typical Families: Lowest in Over Two Decades
· 1981-92. The total Federal tax rate for middle-income families rose from 23.7 percent in 1980 to 24.5 percent in 1992. (Total tax rates include both the employer and employee portion of the Social Security and Medicare payroll taxes.)
· Today. Under President Clinton, the total Federal tax rate for middle-income families has dropped from 24.5 percent in 1992 to 22.8 percent in 1999 that's the lowest tax rate since 1978. For families at one-half the median income, the effective Federal tax rate has been slashed from 19.8 percent in 1992 to 14.1 percent in 1999 that's the lowest tax rate since 1968.
Homeownership Is Up: The Highest in American History
· 1981-1992. The homeownership rate fell from 65.4 percent in 1981 to 64.2 percent in 1992.
· Today. In 1999, the homeownership rate was 66.8 percent the highest ever recorded.
Inflation is Down: The Lowest Core Rate In 35 Years
· 1981-1992. The underlying core rate of inflation averaged 4.7 percent annually.
· Today. Under President Clinton the core rate of inflation has averaged 2.6 percent annually the lowest of any Administration since Kennedy.
Welfare Rolls Dropped Dramatically: Lowest Since 1969
· 1981-1992. The number of welfare recipients increased by almost 2.5 million (a 22 percent increase) to 13.6 million people.
· Today. Between January 1993 and September 1999, the number of welfare recipients dropped by 7.5 million (a 53 percent decline) to 6.6 million the lowest level since 1968.
Unemployment Is Down: The Lowest Rate in 30 Years
· 1981-1992. The unemployment rate averaged 7.1 percent and rose to more than 10 percent in 1982 and 1983.
· Today. In 2000, the unemployment rate has averaged 5.0 percent the lowest rate in over 30 years. The unemployment rate has been below 5 percent for 35 consecutive months.
Unemployment for African-Americans the Lowest on Record
· 1981-1992: African-American unemployment reached 21.2 percent in January 1983 a record high and never dropped below 10 percent.
· Today. The African-American unemployment rate has fallen from an average of 14.2 percent in 1992 to an average of 7.7 percent in 2000 the lowest rate on record.
Unemployment for Hispanics Recovered From Record Highs to Achieve Record Lows
· 1981-1992. Hispanic unemployment hit a record high of 15.7 percent in December 1982.
· Today. The Hispanic unemployment rate has dropped from an average of 11.6 percent in 1992 to an average of 5.8 percent in 2000 the lowest rate on record.
Real Wages Rising Again: Fastest Growth in Two Decades
· 1981-1992. Real average hourly earnings fell 4.3 percent under Presidents Reagan and Bush.
· Today. Real wages have grown 6.5 percent under President Clinton. Real wages have grown for five consecutive years -- for the first time since the 1960s.
Poverty For African-Americans Dropped to Lowest On Record
· 1981-1992. Between 1980 and 1992, the poverty rate for African American remained at 30 percent or more.
· Today. Since 1993, the African-American poverty rate has dropped from 33.1 percent to 26.1 percent in 1998 -- the lowest level recorded, and the largest five-year drop in African-American poverty since 1967-1972.
Poverty For Hispanics Dropped to Lowest Since 1979
· 1981-1992. Between 1980 and 1992, the poverty rate for Hispanics increased from 25.7 percent to 29.6 percent.
· Today. Since 1993, the Hispanic poverty has dropped to 25.6 percentthe lowest since 1979.
Poverty For Single Mothers is the Lowest On Record
· 1981-1992. Between 1980 and 1992, an additional 2.1 million families with single mothers were pushed into poverty.
· Today. Under President Clinton, the poverty rate for families with single mothers has fallen from 46.1 percent in 1993 to 38.7 percent in 1998 the lowest level on record.
Family Income Up More Than $5,000 Since 1993
· 1988-1992. Median family income (in inflation-adjusted 1998 dollars) fell by $1,864, dropping from $44,354 in 1988 to $42,490 in 1992.
· Today. Since 1993, real median family income has increased by $5,046 , rising to $46,737 in 1998.