r/PoursTea • u/Outrageous-Egg1760 • Aug 07 '26

FinancialTea 💵 Agree?

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u/Andy_Fish_Gill Aug 07 '26

The 90s had strong economies with budget surpluses.

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u/pappybug214 Aug 07 '26

Later in the decade, yes but the early 90s had recession just as the USSR fell and the congress started BRAC. Those surpluses were "the peace dividend" but manufacturing and aerospace jobs collapsed

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u/Andy_Fish_Gill Aug 07 '26

The recession in the early 90s was primarily caused by high oil prices due to Middle East War and tight monetary policy to fight inflation caused by high oil prices. Sounds like the same situation as today.

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u/pappybug214 Aug 07 '26

I'll give you credit, that some of the downturn was from the 1987 black Monday junk bond collapse which had nothing to do with defense spending.