Abstract

In 1992, Bill Clinton won the presidency committed to an ambitious program of “public investment.” Yet the plan Clinton submitted to the Democrat-controlled Congress in early 1993 was sharply scaled back in favor of an emphasis on reducing the federal budget deficit. Congress then made further deep cuts in Clinton's plan. This Democratic retreat from public investment would continue throughout the remainder of Clinton's presidency. In this article, I argue that the fate of “Clintonomics” was due mainly to public opinion and electoral politics. In an epilogue, I examine the implications of this episode for the new intra-Democratic debate over public investment.