Anatomy of Clintonomics
"...The performance of the American economy under Clinton has also been far more mixed than is acknowledged by boosters of his ‘Third Way’. GDP growth and productivity gains have not exceeded the performance of previous presidential eras, even after official statisticians have revised national accounts upwards to reflect putative contributions to growth by computer technology, and genuine acceleration since 1996. Moreover, while unemployment and inflation have both fallen, the drop has been in large measure due to the declining ability of workers to secure wage increases even in persistently tight labour markets. Finally, the real economic gains of the period have rested on a fragile foundation—a stock market in which prices have exploded beyond any previous historical experience, inducing an enormous expansion of private expenditure on consumption. But because household incomes have not risen to anywhere near as far as financial asset values, the result has been unprecedented borrowing to pay for the spending spree. The springs of economic growth under Clinton have come from a levitating stock market setting off a debt-financed private consumption boom..."
"Anatomy of Clintonomics" by Robert Pollin, New Left Review, May-June 2000