The Federal Budget
In his State of the Union address, President Clinton urged that prospective budget surpluses be reserved for rescuing Social Security. At that time, the projected cumulative surplus for 1999–2008 was $660 billion. The latest Congressional Budget Office projections show a cumulative surplus of $1.6 trillion over the same period. One might be tempted to conclude that budget surpluses and the President’s exhortation to devote them to restoring Social Security’s solvency herald a more responsible fiscal policy. Unfortunately, such a conclusion would be premature.
Suggested citation: “The Federal Budget,” Federal Reserve Bank of Cleveland, Economic Trends, no. 98-10, pp. 14, 10.01.1998.