FROM EARLY STUMBLES to the rise and fall of Newt
                        to Monica Lewinsky and the long economic boom,
                         Clinton’s led us on a fascinating ride through the Roaring
                         ’90s. Key advisers like Robert Rubin, Leon Panetta,
                         George Stephanopoulos, Mike McCurry, Michael
                         Waldman and Gene Sperling rode the roller coaster with
                         him. Here are their memories.
 
 
                         The Deficit as Job One
 
                                ROBERT RUBIN,
                                Secretary of the Treasury, 1995-1999
 
 
 

                                THE MOMENT that most sticks in my mind was the
                         meeting we had with Clinton on Jan. 7, 1993, in Little
                         Rock. We met with him for six and a half hours on what the
                         budget strategy ought to be. From the beginning what we
                         [the economic team] recommended was that there ought to
                         be a dramatic change in policy, with the view that deficit
                         reduction should create lower interest rates and spur higher
                         confidence. Before the meeting George Stephanopoulos
                         told me this was going to be hard, [that Clinton] would have
                         to make that decision over time. But after about a half hour
                         at the meeting Clinton turned to us in the dining room of the
                         governor’s mansion in Little Rock. He said, “Look, I
                         understand what deficit reduction means [in terms of public
                         criticism for program cuts], but that’s the threshold issue if
                         we’re going to get the economy back on track. Let’s do it.”
 
 
                         Bumpy Beginnings
 
                                GEORGE STEPHANOPOULOS,
                                Senior advisor to the president, 1993-96
 
                                 WE CAME INTO the White House on Inauguration
                         Day, and there were no computers. They’d all been
                         disemboweled, all the hard drives taken out because of the
                         various investigations going on in the White House. And we
                         were already managing a crisis. Zoe Baird, Clinton’s
                         nominee for attorney general, was flaming out on Capitol
                         Hill. Her background check had belatedly turned up that
                         she had failed to pay Social Security taxes for her
                         household help and that the workers were illegal immigrants.
                         She had to go, and we couldn’t even find a word processor
                         to type a letter from Clinton accepting her withdrawal. She
                         agreed to step aside only if the White House agreed to take
                         the blame. My new deputy, David Dreyer, finally drafted a
                         letter that stressed that she had fully disclosed her domestic
                         situation to the transition team. Late that night, Clinton came
                         to my office to sign the letter. He was dressed in
                         sweat-pants and a baseball cap and was munching a banana
                         smeared with peanut butter. He told the group of staff
                         waiting for him in my office that he was disappointed to lose
                         Zoe, but added that he was happy to end it with a measure
                         of grace. After he signed, I introduced him to Dreyer.
                         Clinton stared at Dreyer’s long beard and asked when he
                         had started.
                                 “Yesterday,” Dreyer said.
                                 Clinton smiled. “Well,” he said, “it sure didn’t take you
                         long to screw everything up.”
 
 
                         Showdown with Newt
 
                                 LEON PANETTA,
                                White House chief of staff, 1994-97
 
                                 THE GOVERNMENT had shut down, and there had
                         been a huge snowfall in Washington, I think about 20
                         inches. So the city was pretty much shut down because of
                         the snow, but the country was shut down because of the
                         government. And we were sitting in the Oval Office, and
                         we’d gone through a series of negotiations. The president
                         always had a hope he could cut a deal with [House Speaker
                         Newt] Gingrich. As much as they had different philosophies
                         and different views, the president always felt Gingrich was
                         smart enough to see it was in his interest to cut a deal.
                         Those of us who had experience on the Hill kept telling him
                         it was impossible for Gingrich to compromise, particularly
                         after leading the revolution on the Hill, that he was under
                         tremendous pressure to hold the line. So I presented the
                         president’s last offer and Gingrich and [House Majority
                         Leader Dick] Armey said they couldn’t accept it. Finally the
                         president just looked at them and said, “You know, I just
                         can’t do what you want. I can’t go along with what you
                         want for the country. I think it’s wrong. It may cost me the
                         election, but you know, I’m not going to do it.”

                         I think Gingrich had been playing the same card the president was
                         playing—thinking that eventually the president would have to give
                         in—and for the first time he realized it wasn’t going to happen.
                         The line was drawn, and I think it was a turning point for the president,
                         and probably one of the key turning points that led to his re-election.

                         The Monica Mess
 
                                MIKE MCCURRY,
                                White House press secretary, 1995-98
 
                                 WHEN A REPORTER from the Washington Post
                         called one day in January 1998 to tell me that an
                         investigation of the president and a young woman named
                         Monica Lewinsky was not mere rumor, I suddenly knew
                         we were in for a huge and devastating story. But I didn’t
                         know then how that story would further pollute
                         Washington’s sulfurous atmosphere over the course of the
                         coming months. The Internet helped drive the nonstop
                         drumbeat of the endless news cycle and made it impossible
                         to focus on anything else, even the telltale signs of an
                         approaching crisis in Kosovo that would lead America to
                         war. I dreaded my daily drilling, walking into the press room
                         each afternoon knowing that the reams of information in my
                         briefing book would yield to queries from “respectable”
                         news organizations that were dredged from Drudge. Even
                         the humorous asides that we concocted in advance—”I feel
                         like I’m double-parked in a no-comment zone”—didn’t do
                         well as body armor.
                                 The great irony of the Clinton presidency is rooted in
                         both the promise and the excess of the Information Age:
                         President Clinton successfully guided economic and
                         regulatory policy in a direction that allowed the Internet and
                         the New Economy to blossom. But the Internet also helped
                         make whispered rumor and bitter argument a defining
                         feature of political discourse. The new technologies of
                         communication gave life and legs to a story that might have
                         run its course sooner, doing damage to the president’s
                         ability to govern. The reinforcing cycles of Internet and
                         cable television kept extending the shelf life of the story,
                         turning it into a soap opera. We couldn’t find the “off”
                         switch. I’d see these CNN promos under their “Crisis at the
                         White House” logo, announcing that they planned to carry
                         my routine daily briefing live. So I’d call CNN and ask
                         “Why are you airing my briefing?” And they’d say,
                         “Because that means we get 100,000 more households.”
                         But simultaneously, those same technologies, especially the
                         Internet, improved productivity and strengthened the
                         national economy, which, in the end, rescued the president
                         from the embarrassment of impeachment and scandal.
 
 
                         Midterm Blues
 
                                 MICHAEL WALDMAN,
                                Clinton’s former chief speechwriter
 
                                 THE 1994 MIDTERM election was a hammer blow,
                         just devastating to Clinton and those around him. It was the
                         worst electoral backlash for a new president in a century,
                         and it was hard for him to escape the sense of personal
                         rejection. But his mind was churning. He talked about how
                         the public no longer wanted a strong, permanent governing
                         class, and he saw the election as revealing just how
                         profound was the distrust of government. He knew
                         progressives had to do something to restore that
                         confidence. If people thought government couldn’t manage
                         a two-car parade, they’d never trust it to be involved in big
                         things like health care. “We have to start having some small
                         successes,” he told one meeting at Camp David. A few
                         weeks later he delivered a State of the Union address that
                         was an hour and 20 minutes long. All the pundits mocked it
                         and it looked like his presidency was in the ashes. But it
                         was a clear return to the centrist theme he had first run on.
                         His recovery, in fact, had begun.
 
 
                         Rider on the Storm
 
                                 GENE SPERLING,
                                national economic advisor
 
                                WE’RE IN THE [WHITE HOUSE] family theater,
                         going through the [1998 State of the Union] speech, the
                         world outside is dominated by scandal allegations, and there
                         he is, at this lectern, with his glasses on and us sitting in the
                         crowd and he’s up there like the maestro, rewriting, firing
                         questions to his policy staffers, and he comes to the punch
                         line Michael Waldman [Clinton’s chief speechwriter] and I
                         had written: “Save the surplus for Social Security.” And he
                         looks at it and says, “No, that’s not quite right. Why don’t
                         we just talk about the surplus and then we’ll just say, ‘I can
                         answer in four simple words: Save Social Security first’.”
                         And everybody just said, “Perfect.” And he said, “I still got
                         it.” There he was, able to do every single person’s job in
                         that room as well as they could, and everybody is looking at
                         him work, while all this is going on and thinking, “This guy is
                         amazing—his concentration is amazing under this type of
                         circumstance.”
 

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