Posts Tagged ‘Obama vs Reagan’

Democrats Want The Obama Road To Economic Implosion; I Want A Reagan Recovery

January 31, 2012

The following article does a great job in ramming home just how miserable Obama has been for the economy versus how wonderful Reagan was for the country.

In fact, the information contained probably explains why Reagan is considered “the greatest president in American history” and Obama is “the most polarizing president in American history” (both as measured by Gallup).

So do you want to recover or do you want another Obama term of abject failure?

The $1.2 Tril Gap: Obama’s Subpar Recovery Continues
Posted 06:50 PM ET

 

Economy: The latest economic data make it clear that President Obama’s policies aren’t helping the country get stronger. Rather, they’re smothering what should have been a solid recovery.

Real GDP climbed a less-than-expected 2.8% in final quarter of 2011, and just 1.7% for the entire year, down from 3% in 2010. The trend of subpar growth under Obama continues.

To get a better sense of how bad Obama’s recovery is, consider this: Under Obama, real GDP has climbed a total of just 6% in the two-and-a-half years since the recession ended in June 2009.

By comparison, real GDP had grown 16% by this point in the Reagan recovery, after the very deep and painful 1981-82 recession.

Had Obama’s recovery been as powerful as Reagan’s, the economic pie would be $1.2 trillion bigger today.

And had job growth under Obama kept pace with job growth during the Reagan recovery, there would be 10 million — yes 10 million — more people with jobs today.

So what explains the difference between these two recoveries? Obama and his legion of liberal defenders claim the last recession was so deep that we’re just now getting back on our feet.

Plus, they claim that a financial crisis invariably causes a slow recovery.

Neither excuse holds water. First, the 1981-82 recession was almost as long (16 months vs. 18 months), and as deep (unemployment was actually higher, peaking at 10.8% in that earlier recession).

But even that didn’t stop a rip-roaring comeback.

Second, a recent Federal Reserve Bank of Atlanta report found: “U.S. history provides no support for linking low employment and high unemployment in the current recovery with the financial crisis of 2007-2008.”

Plus, nobody at the time expected the Reagan recovery to be as fast and as powerful as it was.

So what’s different? The presidents’ policies.

Reagan enacted sweeping and permanent tax cuts, aggressively eliminated or reduced regulations, reined in domestic spending, and championed the private sector.

Obama’s approach has been the opposite — a huge increase in regulations; meager, targeted and temporary tax cuts; a massive increase in size and scope of the federal government; and a barrage of invective against businessmen and the wealthy. Obama has bashed Reagan’s approach, saying that cutting taxes and regulations “has never worked” to spur growth.

Obama might think the U.S. is “getting stronger,” as he put it in his State of the Union speech, and maybe it is, a little. But if he keeps choking it with his misguided policies, it will never be as strong as it could be, or should be.

It strikes even me as strange to conclude one article by producing the opening paragraphs of another, but I wrote this about what Ronald Reagan accomplished a couple of years ago:

The numbers told the sad story of the Jimmy Carter presidency: interest rates of 21%; inflation at 13.5%, and an unemployment rate of 7%. And a relatively new economic device called “the misery index” – the combination of the unemployment and inflation rates which Carter had himself used to great effect in his 1976 campaign to win election – was at a shocking 20.5%.

And those who went through those dark and difficult times may soon be looking back to that period as “the good old days.”

Welcome back, Carter.

When Ronald Reagan took office from Jimmy Carter, inflation was at a meteoric 13.3% and the country was in the throes of a fierce recession. There was a real question as to whether workers’ wages would keep up with the costs of living, which made people afraid to either spend or save. And nobody knew how to control inflation – which had risen from 1.4% in 1960 to the aforementioned 13.3% in 1980 – causing a real erosion of confidence in the future. Jimmy Carter answered a reporter’s question as to what he would do about the problem of inflation by answering, “It would be misleading for me to tell any of you that there is a solution to it.”

But Ronald Reagan had a solution. And by the time he left office, he had solved the problem of creeping inflation increases and had actually reversed the trend: he left behind a healthy inflation rate of 4.1%.

Reagan’s policies set the trajectory for growth that would last for 20 years.

And the only thing that could truly destroy the fruit of Reagan’s policies was the coming of another Jimmy Carter.

And of course that’s exactly what we got in this turd:

Obama obviously has no solution to anything but trying to get himself re-elected so he can continue his “fundamental transformation” of America into a failed socialist banana republic.

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