Out from the Archives: Slaying the Dragon of Debt
Slaying the Dragon of Debt: OHC’s Look into Federal Budgets from the 1960s into the 2000s.
Debt and deficits, budget reconciliation, CBO scoring. These arcana have again appeared at the forefront of social media feeds and on the front pages of newspapers as Congress and the White House attempt to pass the new President’s agenda while figuring out how to pay for it.
Back in 2010, OHC director Martin Meeker and then-postdoc scholar Patrick Sharma embarked on a brief but intensive oral history project — that we called “Slaying the Dragon of Debt” — exploring the recent history of federal debt and deficits. The central question asked at the beginning of the project went something like this: how was it that after running deficits for over 25 years, the federal government was able to produce a budget surplus in 1998 and every year until 2001, when we returned to deficits? As the project progressed, plenty of other questions were asked as well: Can the surpluses be attributable to President Clinton’s fiscal policies? To the belt-tightening mandated by Congressional Republicans? To the monetary policies of Alan Greenspan’s Fed? To broader economic trends, such as the dot.com boom? To something else entirely? To all of the above?
As we enter into a new fiscal regime, we think it is useful to return to our project on debt and deficits and attempt to seek insights into the complex workings of federal fiscal and monetary policy and how those policies are influenced by profound political shifts , warring parties, and memorable characters. As the nonpartisan Congressional Budget Office is now brought under criticism by the White House Office of Management and Budget, we want to know how have those offices worked together — or against one another — in the past. Has the work of CBO always been politicized and if so, how? Is the kind of rhetoric we hear today something entirely new or is it just another chapter in the decade’s long battles around government spending?
This project featured interviews with several former directors of the CBO, including Douglas Holtz-Eakin, June O’Neill, Rudolph Penner, Robert Reischauer, and Alice Rivlin. The project also includes interviews with a handful of former OMB directors, including: James McIntyre, Jim Miller, and, again, Alice Rivlin. Perhaps among the most revealing interviews are those with key staffers who worked behind the scenes, crafting legislation, and making policy. We recommend reading through the oral histories with Bill Hoagland, who served as staff director for the Senate Budget Committee from 1986 to 2003, and Joseph Minarik, who was the chief economist at the OMB throughout Clinton’s two terms. Let us know what you think!