At no time was Clinton deficit zero, in 2000 it was $17Billion, but before and after were greater than $100Billion.
#135 | POSTED BY ANDREAMACKRIS
And you would be wrong.
Sources are below.
Why you are wrong? I found your "sources." They are going after the difference in the Federal Debt rather than the income versus outlays that year.
Unfortunately an increase in the National Debt doesn't mean the Government didn't run a surplus. It just means they didn't pay down the debt with the surplus.
A family owes $10,000 in credit card debt with 5% interest and has a surplus in their budget for the year of $1,000 after income from employment minus daily expenses. Instead of paying down the credit card debt, they put the money in savings. The credit card debt increases to $10,500. Under the Cash Method of Accounting, the Family saw a Surplus of $1,000 (debt only counts when paid). Under the Accrual Method of Accounting, the Family saw Surplus of $500 (surplus minus debt increase even if not paid immediately). Note that despite the Surplus, the Credit Card Debt still grew.
Even your own sources admit this is a problem when they respond to objections.
Why the National Debt Increased Still
The Federal Debt did increase that amount in 1999 on paper but not in reality. The Public Debt was actually paid down in 1997-2000. The actual increase came from the Social Security Administration buying US Securities (something its required to do with any surpluses). Basically Social Security loans money to the Feds whether the Feds need it or not by buying securities. The security counts as a debt as far as the national debt goes.
Again think of a Family. The bank gives the family a $1,000 loan at 2% called a security. The family can't say no. And the family can't repay the loan until the Bank decides to cash it in. So even if the family has a yearly surplus of $100,000, their debt will go up $1,000 from the Bank's loan and there is nothing they can do about it.
And that's why measuring surplus or deficit by the National Federal Debt is for people without a background in accounting.
Without even including Social Security, Clinton saw a surplus of $1.9 billion in 1999 and $86.4 billion in 2000 under the Cash Method employed by the CBO. Again, without even including Social Security, Clinton saw surpluses of $69.2 billion in fiscal 1998, $76.9 billion in fiscal 1999, and $46 billion for fiscal year 2000 under the Accrual Method.
But hey, why trust me? Trust what the CBO says. www.cbo.gov
Mackris is once again wrong. She misunderstands the difference in the National Debt and the National Deficit and how Social Security buying Securities with surpluses increases the National Debt regardless of Federal Government non-Social Security Surpluses.