Bill the Bold, Bill the Pleaser; The best thing for the new president to do is concentrate on a few big problems.
There have been two Bill Clintons in the past year. The first is Bill the Bold. He's a guy who seems eager to break with past dogmas and face the daunting problems of government. The second is Bill the Pleaser. He's someone who will say almost anything (with a few exceptions) to satisfy the audience of the moment, and as a result, he's said a lot of contradictory things. We still don't know which Clinton will govern - or if both will try.</br></br>Ever since his election, the press has analyzed his every appointment and utterance, searching for signs of what he'll do. So far, we've come up short. He gave a long interview to the Wall Street Journal in which he talked tough on deficits and sounded like Bill the Bold. But was he simply telling the Journal's readers what he thought they wanted to hear? We don't know. Even he may not know.</br></br>Speculation is futile. Clintonomics is an empty phrase, not a policy. We will know what Clinton does when he does it. It's better to ask what he should do. The answer is that he should concentrate on a few big problems instead of trying to fulfill a host of small promises. Specifically:</br></br>The Budget Deficits. Although they don't immediately threaten the economy, their persistence poses long-term dangers. As the government goes deeper into debt, rising interest payments on its borrowings crowd out other government spending. Since 1959, the interest burden has risen from 6 percent to 14 percent of all federal outlays. Likewise, huge deficits may ultimately depress private investment by raising interest rates and discouraging businesses from borrowing. Lower private investment rates would in turn gradually undermine the prospects for higher living standards.</br></br>Health Care. As Clinton concedes, it will be hard to control budget deficits unless health costs are controlled. Consider the projections of the Congressional Budget Office. By the year 2000, Medicare and Medicaid spending is forecast to reach 23 percent of federal spending, up from 13 percent in 1991. The same process is squeezing take-home pay. Soaring health insurance premiums are draining more money from wages and salaries.