,,
By using this website you allow us to place cookies on your computer. Please read our Privacy Policy for more details.
Publication Date: October 2002
Publisher: Heritage Foundation (Washington, D.C.)
Author(s): Scott A. Hodge; William W. Beach; Mark Wilson
Research Area: Economics
Keywords: Budget
Type: Report
Abstract:
The evidence does not support the Administration’s claim that the 1993 budget plan triggered stronger economic growth. On the contrary, the critics of the 1993 legislation appear to be correct that because of it Americans are caught in what some refer to as the “Clinton Crunch,†the dual effect of declining real wages combined with higher taxes. The analysis by Heritage Foundation economists, using the WUMM model, indicates that OBRA-93 has had a damaging impact on the nation’s economy. Removing the effects of OBRA-93 in an econometric simulation shows that the economy would have been performing better today had Congress not enacted the legislation.