Political Blogs, News & Views

Clintonomics 2.0?

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Regardless of party affiliations, there are few who can keep a straight face while arguing that the American economy didn’t flourish during President Clinton‘s time in office. And rightly so, because it was 2 Presidential terms of upwards economic growth. From an era of outrageous deficit spending and unimaginable national debt to a balanced budget and a surplus in Washington; not to mention nearly nonexistent unemployment rates among those of working age who wanted a job.

That isn’t to suggest there weren’t bumps in the road now and then. With the complex intricacies of such a large economy and private sector there will always be some adverse and unintended effects for a few from every action taken. And President Clinton shouldn’t get all of the credit or blame for the highs and lows during his terms, a Republican controlled congress played a large part in much of it as well.

Fast forward to President Obama taking office, once again we were faced with horrific deficits and debt, no surplus, and an economy spiraling out of control and on the edge of collapse. This isn’t a placing of blame for those conditions, I only list them to frame the circumstances at the moment Obama was sworn in.

Now, 1 year later, as the media and pundits scream “Holy hell!!!” like the prophets of doom they’ve become, the facts show a largely different picture that I think is worth looking at seriously.

While unemployment–traditionally the last area to notice recovery from a recession–has remained uncomfortably high, the fact is that our economy grew at the fastest rate in almost 7 years during the last quarter of 2009.

Our Gross Domestic Product expanded at a rate of 5.7% during that same quarter, nearly 3 times the rate it had grown in the previous quarter and well in excess of what expert analysts were predicting and expecting.

Across the board businesses plugged the inventory depletion faucets in the last quarter, no longer allowing inventories to run down as a cost cutting measure. And some have even begun to increase production to refill empty warehouses and stockrooms.

Consumer spending in the 4th quarter of 2009 also exceeded most expectations, growing at a rate of 2% and giving retailers and other businesses reason to look forward with a more positive eye.

Imports and exports were up for the quarter, with exports increasing at nearly twice the rate of imports, a very good sign for us. Businesses increased investments in software and equipment from a low of 1.5% in the 3rd quarter of 2009 to 13.3% in the 4th quarter. An even better sign for us, because businesses that purchase software and equipment tend to follow up with increased hiring as well.

In other words, while jobs are naturally the last thing to return after a recession and many people are still struggling to make ends meet, it would appear that we truly have turned the corner and are on our way back up.

So, while it’s easy populism for talking heads to keep screaming in outrage and pointing fingers of failure at Washington while keeping viewers tuned in with alarming prophesies of unavoidable doom–the fact is that once again a Democratic President seems to have gotten our economy moving along the right track towards national prosperity.