Some people would argue that the Federal Reserve deserves most of the credit, while others would throw in Jimmy Carter as an important actor. President Clinton's performance is indeed noteworthy. His two terms of office have overlapped this period of prosperity. Increased business investment led to productivity increases that kept inflation in check and created vast numbers of new jobs. The deficits that plagued previous Administrations have disappeared.
Inflation is low and millions of new jobs have been created.
Republicans counter that the expansion was nearly two years old when Clinton came to office. It was Reagan-era tax cuts and deregulation, they argue, that started the economic expansion in November 1982. The reduction in income tax rates and the release of some industries from price controls and other regulations started the burst of entrepreneurial spirit that has continued today. Except for two brief recessions in 1990 and 1991, coinciding with the Persian Gulf war, this expansion is simply an extension of Reaganomics, which started the economy moving. Republicans also claim that it was pressure from them that caused Clinton to abandon big spending programs and to turn his attention to deficit reduction.