President-elect Obama likes to tell people that his economic plan is similar to that of the one that President Clinton used to get us out of the economic funk in the early '90s.
The problem with that theory is that we were already in the middle of the Reagan Boom when Clinton became Pres. And even though there was slight downturn in 1991 by the time he was inaugurated the economy was already heading upwards. That's not to say that there was not another expansion at the end of Bubba's term but Obama has no Idea what caused that expansion.
By taking a look at the chart above you can see that there were 4 elements that created the economic boom in the Clinton Presidency:
- The Death of Hillary Care
- The Republican Take-over of Congress
- Feds easing up on the money supply
- A Cut in the Capital Gains Tax