Show me the money: What happened to Bill Clinton's budget surplus?

When President Clinton left office, the federal budget was showing a $127-billion surplus.

The books are closed on fiscal 2008. The surplus the current President Bush inherited has turned into a record deficit: $455 billion.

That is more than twice the 2007 deficit of $162 billion and beyond the previous record of $413 billion in 2004.

But records are made to be broken.

While Barack Obama or John McCain will submit the next federal budget weeks after Inauguration Day, it will be largely drawn up by Bush's aides.

And regardless of who is inaugurated, as the country copes with the worst financial crisis since the Great Depression, the deficit is only expected to grow, our Los Angeles Times colleague Richard Simon reports in today's Times.

As the election campaign closes, look for the deficit report to figure in the debate -- and to add fire to House Democrats' efforts to pass another economic stimulus package to the tune of $150 billion.

-- James Gerstenzang

Photo: President Bush and President Clinton on inauguration day 2001. Credit: Shaun Best / Reuters

Comments

[Mary O'Connell]

You are all invited to say farewell to the deceased Free Market, Trickle down economics. The Party will be held on Nov 4th at 9:00 pm PST.

[letxa]

There was no Clinton surplus: http://www.letxa.com/articles/16 . It's a myth.

[David Paradine]

As usual your information is either incorrect or you continue to lie.

There never was a Clinton surplus......simply check the record not the Clinton White House