Clinton, William (Administration)

Biography and Philosophy

The youngest man elected to the presidency since John

F. Kennedy, Clinton had achieved the office absent his hero's privileged background. Born to a widow in one of the poorest states in the country, Clinton emphasized his personal experience with deprivation and the avenue for achievement that education had afforded him (he was educated at Georgetown, Oxford, and Yale). As governor of Arkansas for five terms, Clinton made a name for himself as an innovative reformer who sought consensus between the political parties.

Seen by many as a throwback to Kennedy, Clinton's campaign in 1992 was based on a combination of inspiring [Page 179]rhetoric, personal likeability, and a coherent message that a cautiously activist government should nurture responsibility, opportunity, and community. Clinton's poverty-fighting philosophy largely reflected these themes throughout his administration.

Poverty Policy and Economic Agenda

Clinton governed during the longest period of sustained economic growth in U.S. history. High-technol-ogy innovation, falling interest rates, and low inflation all contributed to the economic boom and provided the government with many of the resources necessary to ensure that the rising tide did, indeed, lift all boats. Clinton used essentially the same combination of macroeconomic tools, including tax credits and wage increases, that his predecessor had wielded to fulfill his campaign commitment to reward personal responsibility.

In sharp contrast to the George H.W. Bush administration, however, Clinton's first budget proposed a tax increase on workers earning more than $250,000 annually to pay for tax relief for working families, without exacerbating the national deficit. Revenue increases and some targeted spending reductions (predominantly in defense spending), coupled with the overall economic growth, combined to eliminate the budget deficit during the Clinton presidency and amass the largest budget surplus since 1951. These conditions made targeting the working poor a more palatable legislative priority.

In his first budget, Clinton requested an expansion of the Earned-Income Tax Credit (EITC). The EITC enjoyed bipartisan support and was expanded significantly in 1993, providing a family with two children a $.40 tax break for every dollar of income earned up to $9,500. In 1996, the president and Democratic allies in Congress managed to win an increase in the minimum wage from $4.25 to $5.15.

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