Clinton would have none of it. “If they send me a budget that says simply, ‘You take our cuts or we’ll let the country go into default,’ I will veto it,” Clinton said at the time, calling Republican tactics “economic blackmail.”
Instead of attempting to negotiate over the cuts, Clinton simply vetoed both bills. “America has never liked pressure tactics, and I would be wrong to permit these kind of pressure tactics to dramatically change the course of American life,” Clinton said. “I cannot do it, and I will not do it.” The government shut down.
Still, even though Clinton enjoyed political and economic advantages that Obama does not, his no-compromises strategy had some clear advantages. Unlike Obama, he refused to let the threat of default set the national agenda. Because he would not enter into negotiations over the debt ceiling, the issue barely roused the public consciousness. On November 9, 1995, a senior administration official told the Washington Post, “Our position is it does not matter what they put on this legislation, we are not going to accept anything but clean bills because we will not be blackmailed over default. Get it? No extortion. No blackmail. What you hear are their screams of complaint as they realize we are not, not, not budging on this.”
Quotes from How Clinton Handled His Debt Ceiling Crisis Better Than Obama | The New Republic