Clinton and Gingrich found common ground. Washington must again

Americans have cast their ballots. Now they should be able to expect something in return: leaders willing to work together to make their lives better. A small business owner meeting payroll and a parent stretching a paycheck have every reason to demand that Washington turn the election’s arguments into progress they can feel.Former President Bill Clinton and former House Speaker Newt Gingrich showed that fierce political opponents could meet that obligation. Their 1997 budget agreement offers today’s leaders a practical example of how to negotiate without abandoning their convictions. Small businesses and working families deserve that same willingness to govern.The relationship began with confrontation. Republicans won control of the House and Senate in 1994, and Gingrich pursued a conservative agenda that challenged Clinton’s approach to government. Their budget battles produced two government shutdowns. The disagreements were substantial. Yet they found a way forward. In May 1997, Clinton and congressional leaders reached a framework intended to balance the federal budget by 2002. That August, Clinton signed the Balanced Budget Act and the Taxpayer Relief Act. Leaders who had fought over Washington’s direction accepted shared responsibility for moving the country ahead.Both sides made concessions. Republicans accepted less tax relief than they had sought. Clinton accepted greater savings in Medicare and other areas than he had previously proposed. Negotiation required them to decide which priorities mattered most and which demands they could set aside to reach an agreement.That bargain connected fiscal responsibility to the needs of households and businesses. It combined spending restraint with tax relief, education benefits, and the creation of the Children’s Health Insurance Program. The child tax credit reached $500 after its initial year, while new education tax credits helped eligible families meet college costs.The agreement addressed costs and obligations that small-business owners faced directly. The tax legislation expanded the home office deduction, eased alternative minimum tax requirements for small corporations and provided targeted estate tax relief for qualifying family businesses and farms. These provisions addressed the work of building an enterprise and the challenge of keeping it in a family.The agreement’s breadth helped make action possible. The Senate approved the final tax package 92-8. At the signing, Clinton welcomed “Americans of goodwill from all points of view and all walks of life.” Political differences remained, but they had left room for cooperation on decisions that mattered to the country.The fiscal results were significant. In fiscal 1998, the government recorded a surplus of roughly $69 billion, reaching balance four years before the agreement’s target. By fiscal 2000, the annual surplus was approximately $236 billion. A country accustomed to persistent deficits had demonstrated that a different direction was possible.That record should be presented honestly. Earlier budget decisions, lower defense spending after the Cold War, economic growth, and rising tax receipts also contributed to the surpluses. Clinton and Gingrich helped sustain fiscal cooperation as workers and businesses generated the activity behind those revenues. Government discipline and private enterprise each had a role.Today’s leaders have their own opportunities to turn difficult compromises into lower costs and greater confidence on Main Street. Housing offers a place to build on cooperation already achieved. The bipartisan 21st Century ROAD to Housing Act became law in July. Its provisions address housing supply, streamlined reviews, and manufactured housing. Congress should now oversee implementation and work with states and communities to shorten approval delays. For small builders, less time waiting can reduce carrying costs. For families, more homes can ease pressure on prices and rents.Energy offers another opening. Republican Sens. Shelley Moore Capito (R-WV) and Mike Lee (R-UT) joined Democrats Sen. Sheldon Whitehouse (D-RI) and Sen. Martin Heinrich (D-NM) on permitting legislation this fall. Their proposal would accelerate reviews, expand the grid, and give approved projects greater certainty. Leaders should finish that work while preserving environmental safeguards. More reliable supply would help a manufacturer plan production and a neighborhood grocer manage refrigeration costs, though relief would take time.RAND PAUL IS THE RIGHT POLITICIAN TO LEAD LIBERTY CAMPAIGN FOR PRESIDENTTariffs require a harder bargain. Republican Sen. Chuck Grassley (R-IA) and Democrat Sen. Maria Cantwell (D-WA) have proposed requiring congressional approval for new tariffs to remain beyond 60 days. That provides a starting point for accountability. Leaders should also negotiate targeted relief for essential inputs unavailable domestically, while retaining tools against unfair trade. When an essential input has no domestic substitute, tariff relief can give a small manufacturer more room to protect payroll, hold prices, and invest.Clinton and Gingrich proved that leaders can fight hard for their principles and still reach common ground. Today’s leaders owe Americans that effort. The owner putting personal savings into a business and the employee counting on the next paycheck need Washington to do its part. The election is over. The responsibility for making their lives better lies with both parties.Dan Varroney is an economic strategist, founder and CEO of Potomac Core, and author of Rethinking Economic Growth.