Wednesday, December 13, 2006
Setting the historical record straight
The Nashville Today tabloid (sorry, no Web site) has a regular column called "Ticked Off," which features anonymous rants from some of Music City's finest citizens. The current "Ticked Off" features this astute gem:
"[Bill] Clinton ... took the helm at [a] time of economic ruin."
Unfortunately, this pernicious myth, first propagated by Bill Clinton himself during the 1992 presidential campaign, finds its way into the public debate from time to time. Each time I see it, I feel an overwhelming urge to correct the historical record. To wit:
Throughout the 1992 campaign, Bill Clinton and Al Gore stated over and over that George H.W. Bush had foisted upon the American people "the worst economy since the Great Depression." Problem was, however, they were telling an outright fib. In truth, the recession of 1990-91 was less severe than the 1981-82 recession Paul Volcker engineered to stamp out Jimmy Carter's stagflation.
The 1990-91 recession (dated August 1990 to March 1991) was relatively short. Based on official recession-dating by the National Bureau of Economic Research, it spanned eight months in duration, compared with the 11.8 month average for the five previous recessions. Weak consumption spending and residential investment was the primary cause of the 1990-91 recession. The Federal Reserve was reluctant, and hence late, to ease the fed funds interest rate in 1990, and the economy slipped into a mild recession.
Finally, the 1990-91 recession ended 20 months before the November 1992 election. (The NBER did not announce its end date until December 22, 1992 -- over a month after the presidential election.) Bill Clinton and Al Gore took office at a time when the economy was firmly rebounding. Any suggestion to the contrary is pure poppycock.
"[Bill] Clinton ... took the helm at [a] time of economic ruin."
Unfortunately, this pernicious myth, first propagated by Bill Clinton himself during the 1992 presidential campaign, finds its way into the public debate from time to time. Each time I see it, I feel an overwhelming urge to correct the historical record. To wit:
Throughout the 1992 campaign, Bill Clinton and Al Gore stated over and over that George H.W. Bush had foisted upon the American people "the worst economy since the Great Depression." Problem was, however, they were telling an outright fib. In truth, the recession of 1990-91 was less severe than the 1981-82 recession Paul Volcker engineered to stamp out Jimmy Carter's stagflation.
The 1990-91 recession (dated August 1990 to March 1991) was relatively short. Based on official recession-dating by the National Bureau of Economic Research, it spanned eight months in duration, compared with the 11.8 month average for the five previous recessions. Weak consumption spending and residential investment was the primary cause of the 1990-91 recession. The Federal Reserve was reluctant, and hence late, to ease the fed funds interest rate in 1990, and the economy slipped into a mild recession.
Finally, the 1990-91 recession ended 20 months before the November 1992 election. (The NBER did not announce its end date until December 22, 1992 -- over a month after the presidential election.) Bill Clinton and Al Gore took office at a time when the economy was firmly rebounding. Any suggestion to the contrary is pure poppycock.
# posted by Joltin' Django @ Wednesday, December 13, 2006 
