Economics Questions and Answers

Start Your Free Trial

Why did the federal budget go from a huge deficit in 1992 to a surplus in 1998?  Explain the factors that contributed to the turnaround.

Expert Answers info

pohnpei397 eNotes educator | Certified Educator

calendarEducator since 2009

write35,413 answers

starTop subjects are History, Literature, and Social Sciences

Whenever we are trying to explain what happened in something as complex as the US economy and the federal budget, there will be many factors that could be involved.  Different people will place different levels of importance on the various factors.  This is particularly true when, as in this case, politics are involved.

Some people give President Clinton the credit for the change you mention.  They point out that he raised taxes and decreased the level of government spending (when measured as a percentage of gross domestic product).  They argue that these actions allowed...

(The entire section contains 292 words.)

Unlock This Answer Now

check Approved by eNotes Editorial