THE US ECONOMY: THE DEFICITs ARE COMING BACK

This article presents the performance of the US Economy during the last two presidencies. The Clinton years are analyzed in the first chapter, showing particularly the outcomes on investment and growth as a consequence of pursuing fiscal discipline. In the second part of the article, the presidency of George W. Bush is analyzed, paying particular attention to the consequences of the laxed fiscal polices pursued by the new president. Chapter three highlights the reappearance of the Twin Deficits, in a manner quite similar to that of the 80s. A final chapter looks into the future of the US Economy emphasizing the problems posed by the rising US External Debt.