While that may be true, Clinton's 1994 budget deal saw a change in the way Washington did things. Before, both sides would rail against each other and in the end Republicans got their tax cuts and Democrats got their spending. The 94 budget deal was different. The 94 budget deal saw a small increase in taxes and constraint on spending. The resulting adult behavior sent a signal to the bond market that real interest rates could be lowered. That spurred the economy more than the peace dividend.