The Evaluation Of The Clinton Administration’s New Economy

"New economy" policy is a general term for a series of economic policies during the Clinton government, the implementation of this policy is very important for the United States of America economic history of the last century since the90’s. It successfully increased the government’s tax revenue, the federal government institutional reform, allowing the government to effectively exercise its economic function. The implementation of the industry policy makes the industry of new and high technology, especially information technology industry in the USA suddenly rises as a new force; while the enterprise reform making the United States domestic enterprises more dynamic and international competitive. In addition, various financial investments in the name of "the new economy" not only promoted the growth of the domestic economy, but also the development of the cause of education, scientific. research, concerning the long-term development of American society economy. At the same time, we think, any kind of economic policy has two sides; the new economic policy is no exception.Clinton’s new economic policy is based on the theory by many scholars call the "new Keynesian" economic Theory. This new economic theory is a comprehensive economic theory in the past. The main source of the"New Keynesian" theory is the theory of Keynesian. But different from the theory of Keynesian.Clinton’s new economic policy, based on the United States at home and abroad background are closely related. In an international context, mainly as follows:the end of the Cold War, prompted the United States to a variety of resources to focus on economic development; regional economic crisis in international capital flows to he United States:international energy price stability, making the United States and sufficient energy supply. In the domestic context, mainly for the domestic macroeconomic serious imbalance, high deficit, high debt, high interest rates, high unemployment, and a high trade deficit "high five" coexist, economic development there are some new trend, that high-tech industry is developing rapidly and some institutional innovationThe focus of this paper is that the New Economic Policy in the Clinton fiscal policy, fiscal policy has two basic starting point:first, the departure from the negative side, the main focus on to make up the deficit, to improve the Government’s fiscal position; Second, the positive aspects, the main focus on the promotion of long-term stable growth of the economy. The negative aspects to make up for the deficit mainly through income and savings Expand:raise taxes on personal income tax, corporate tax, medical care insurance tax, social security tax, transportation fuel tax increase of several tax incomes, the main analysis, the effects and consequences of the tax increases and a brief analysis; in terms of savings, mainly from two angles to streamline government agencies and reduce military spending, streamline government agencies and as discussed in the focus of this article, this article from the repealed cumbersome rules and regulations, budget reform, procurement reform, civil service reform four sub-proposition to expand. The Clinton administration through the two aspects of the reform of the income and savings, the Government’s fiscal position has been greatly improved. However, this is only the negative aspects of Clinton’s fiscal policy, the positive side, and promote long-term stable economic growth is the more fundamental purpose. The positive aspects of Clinton’s fiscal policy are mainly reflected in its industrial policy, industrial policy mainly consists of two elements:First, increase investment in high-tech industries, the implementation of the "information highway plan; Second, relax corporate governance, it mainly focus on two aspects to relax controls on corporate restructuring and deregulation of the enterprise price analysis. Increase investment in high-tech industries and enterprises deregulation, on the latter as the focal point of this article. Relax the control of corporate restructuring, detailed combing its deregulation historical process, and pointed out that this relaxation increased the competitiveness of enterprises, prompting a decline in product prices; same time, making large-scale capital to high-tech industries gathered to optimize the industrial structure. Relaxed price controls specific sort relax power industry price control, to relax natural gas industry price control, relaxation in the telecommunications industry price controls relaxed price controls of the banking and financial industry, relaxation of the transport price controls process.On the one hand, the fiscal policy of the Clinton administration focused on balancing the budget deficit, on the other hand, focus on the promotion of long-term stable economic growth, but how do we evaluate these policies? It can be said that for the United States, its impact has both advantages and disadvantages:On the plus side, mainly in the economic "one high and two low", to promote the improvement of labor productivity in the United States, the information industry has become a pillar industry in the United States; the negative side, mainly the digital has led to polarization, the new generation of monopoly. Impact from the international point of view, on the one hand, to change the status of the United States in three patterns in the United States, Japan, Europe, on the other hand, speeding up the trend of world economic regional blocs.