Although the Act did produce a modicum of success in curbing increases in spending, it could not prevent the decline of revenues from individual and corporate taxes that fell short of expectations. This could be a cautionary tale for the coming years. It wasn't until the Clinton administration that the deficit finally began to drop. In 1993, President Clinton and Congress made changes to the budget by introducing a deficit reduction package of spending cuts and various methods of increasing revenues. In 1997 the Balanced Budget Act was passed to further the goal of fiscal responsibility on the part of the government.
Future estimates seem positive with a growing surplus over the next four years.
While this would seem to indicate that these measures to curb the accumulation of debt have been effective, most analysts would disagree. This information or, alternately, Internet revolution has resulted in a massive private sector investment in information technology. As we have learned in class, this increase in investment can have a multiplier or synergistic effect on the economy. While there is little doubt that efforts to instill fiscal discipline on the federal government have contributed to the reduction and elimination of deficits, the general consensus is that the information revolution and its attending economic expansion are the driving factors in producing the current surpluses. How Much You got to be careful if you don't know where you're going, because you might not get there.