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Home Publications Blogs Beat the Press Dan Balz and Phillip Rucker Insist the Democrats Cannot Abandon Clinton's Bubble Driven Growth

Dan Balz and Phillip Rucker Insist the Democrats Cannot Abandon Clinton's Bubble Driven Growth

Saturday, 15 February 2014 23:35

I'm not kidding. They discuss the battle between the progressive and the Wall Street wings of the Democratic Party then tell readers;

"For Democrats who could lead the party in the future, the challenge will be to articulate a new populist direction without denigrating the Obama record or abandoning the contributions of Bill Clinton."

Of course the most important contribution of Bill Clinton was an over-valued dollar that led to a huge trade deficit. The demand gap that was created by the trade deficit (this is income that creates demand overseas rather than the United States) was filled by the stock bubble in the 1990s and the housing bubble in the last decade. The fallout from the collapse of these bubbles has been disastrous. In the case of the housing bubble, the changes in Congressional Budget Office projections from before the collapse to the present imply a cost to the country of $24 trillion ($80,000 per person) in lost output through 2024.

One might think this would be grounds to abandon the Clinton legacy, but hey, Balz and Rucker say they better not.

Comments (9)Add Comment
The WJ Clinton "Legacy"
written by John Puma, February 16, 2014 1:01
1) Defense of Marriage Act – unconstitutional?
2) DADT – dumped?
3) Telecom Deregulation Act of 1996, aka “Rupert Murdoch/Clear Channel/Hate Media Enabling Act”?
6) “end of welfare as we know it”?
7) repeal of Glass-Steagall Act?
8) Commodity Futures Modernization Act of 2000: legalization of OTC derivatives, with #7, the impetus for Great American Depression 2.0?
9) Continually kissing the collective ass of, and thereby "emboldening," the then incipient domestic terrorist wing of the GOP.
10) Extension of and presiding over Pappy Bush’s war crime of Desert Storm “economic sanctions” that were collective punishment of Iraqis and, as easily predicted for such sanctions, were merely a strategy to “soften up” a target country in preparation for (another) war — not to mention having killed 1 million Iraqi’s, half of them children (see Madeleine Albright’s infamous “it was worth it” quote.)?
11) destruction of Yugoslavia for having the nerve NOT to chirp “how wide, massa” when ordered by the global predatory capitalists to spread its national economic ass cheeks.??

Ten and eleven were Clinton’s actual impeachable acts. But the dalliance that lead to his impeachment was the impetus needed to mobilize the American Taliban in numbers sufficient to allow GW Bush to even get close enough to have the opportunity to steal the 2000 election.

Why would anyone think an H. Clinton presidency would afford a legacy much different?
written by foosion, February 16, 2014 4:49
If there has not been a housing bubble, were would GDP be compared to where it is now?
written by Pauley, February 16, 2014 8:52
Didn't think HRC's would be so different; suspected BHO's might not be so different, but HOPEd it would prove different. Fooled agin' and still lookin' fer our Roosevelts...
written by MikeC, February 16, 2014 10:01
Dean, How did the Clinton admin engineer a strong dollar? Wouldn't the Fed have done this via high iinterest rates?
written by MikeC, February 16, 2014 10:07
Or did Treasury buy dollars to affect exchange rates?
written by watermelonpunch, February 16, 2014 11:39
@ MikeC : Just a guess here... but see John Puma's 4 through 8 above for the answer to your question..
Nonsense Article from Start to Finish
written by Dave, February 16, 2014 1:58
The entire article in WP is nonsense from start to finish. This is why nobody that cares about reality reads the WP. All you get is a false characterization of reality, which is almost always designed to maintain the status quo, whereby Republicans can continue to cater only to rich people without being booted out. As long as the both do it, they can claim, "Both parties do it!"

Warren's direction is the only direction for a viable economic future for the country. The old ways have failed, including Clinton's ways. We're not going there, so if the campaign for Hillary is as some say, designed and founded upon the record of BIll, many of us will vote for someone else. Green, independent, anything except Republican or Democrat.

written by Ian Winograd, February 16, 2014 5:14
@ Mike C: Dean has written about the strong dollar policy before. After the East Asian financial crisis, Robert Rubin (Treas Sec under Clinton) got the IMF to impose a policy on the countries of the region that essentially called for them to repay their debts by exporting like crazy to the United States. This meant taking advantage of currencies that were grossly under-valued relative to the dollar. .

Compared to the Great Depression
written by EJ, February 19, 2014 10:02
"... a cost to the country of $24 trillion ($80,000 per person) in lost output through 2024."

Over the first ten years of the Great Depression (1930's), Doug Henwood says the US lost 1.8 years of GDP.

The CBO is predicting 1.7 years of lost GDP over the first 15 years of the current depression.

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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.