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Reaganomics vs. Obamanomics

hypocritexposer

Well-known member
Reaganomics vs. Obamanomics

By Peter Ferrara
Director, Entitlement and Budget Policy, Institute for Policy Innovation

President Reagan’s economic recovery plan included four specific components on which he explicitly campaigned over and over and then implemented once elected.
(FOX News/AP)

These were:

1. Reductions in tax rates to restore incentives for economic growth. This consisted of, first, a reduction in the top income tax rate of 70% down to 50%, and then a 25% across the board reduction in income tax rates for everyone. The 1986 tax reform then reduced tax rates further, leaving just two rates, 28% and 15%. Reagan also cut corporate income tax rates and capital gains tax rates

2. Spending Reductions. The reductions included a $31 billion cut in spending in 1981, close to 5% of the federal budget then, or the equivalent of about $150 billion in spending cuts for the year in 2008. In constant dollars, non-defense discretionary spending declined by 14.4% from 1981 to 1982, and by 16.8% from 1981 to 1983. Moreover, in constant dollars, this non-defense discretionary spending never returned to its 1981 level for the rest of Reagan’s two terms! By 1988, this spending was still down 14.4% from its 1981 level in constant dollars. Even with the Reagan defense buildup, total federal spending declined from a high of 23.5% of GDP in 1983 to 21.3% in 1988 and 21.2% in 1989. That’s a real reduction in the size of government relative to the economy of 10%

3. Anti-inflation monetary policy to restrain money supply growth.

4. Deregulation. Reagan’s deregulation plan has now saved consumers an estimated $100 billion per year in lower prices. Reagan’s first executive order, in fact, eliminated price controls on oil and natural gas. Production soared, and the price of oil declined by over 50%.

The results were spectacular. These four components produced a 25-year economic boom from 1982 to 2007. In their new book, “The End of Prosperity,” Art Laffer and Steve Moore call the these years “the greatest period of wealth creation in the history of the planet.” They note that — adjusted for inflation– more wealth and income was created during this Reagan boom than in any other prior period in U.S. history. That’s right, than any other entire period dating from President George Washington all the way up to Ronald Reagan.

But Barack Obama is doing exactly the opposite on each of these four points:

–He is still promising tax rate increases, at least by letting the Bush tax cuts expire.

–He just passed the greatest increase in government spending in the history of the planet.

–He is promising massive increases in regulatory burdens, including global warming cap and trade regulation that would cost the economy another trillion dollars a year.

–The Fed is already furiously reinflating the money supply, sowing seeds of further havoc in the future
 

TSR

Well-known member
hypocritexposer said:
Reaganomics vs. Obamanomics

By Peter Ferrara
Director, Entitlement and Budget Policy, Institute for Policy Innovation

President Reagan’s economic recovery plan included four specific components on which he explicitly campaigned over and over and then implemented once elected.
(FOX News/AP)

These were:

1. Reductions in tax rates to restore incentives for economic growth. This consisted of, first, a reduction in the top income tax rate of 70% down to 50%, and then a 25% across the board reduction in income tax rates for everyone. The 1986 tax reform then reduced tax rates further, leaving just two rates, 28% and 15%. Reagan also cut corporate income tax rates and capital gains tax rates

2. Spending Reductions. The reductions included a $31 billion cut in spending in 1981, close to 5% of the federal budget then, or the equivalent of about $150 billion in spending cuts for the year in 2008. In constant dollars, non-defense discretionary spending declined by 14.4% from 1981 to 1982, and by 16.8% from 1981 to 1983. Moreover, in constant dollars, this non-defense discretionary spending never returned to its 1981 level for the rest of Reagan’s two terms! By 1988, this spending was still down 14.4% from its 1981 level in constant dollars. Even with the Reagan defense buildup, total federal spending declined from a high of 23.5% of GDP in 1983 to 21.3% in 1988 and 21.2% in 1989. That’s a real reduction in the size of government relative to the economy of 10%

3. Anti-inflation monetary policy to restrain money supply growth.

4. Deregulation. Reagan’s deregulation plan has now saved consumers an estimated $100 billion per year in lower prices. Reagan’s first executive order, in fact, eliminated price controls on oil and natural gas. Production soared, and the price of oil declined by over 50%.

The results were spectacular. These four components produced a 25-year economic boom from 1982 to 2007. In their new book, “The End of Prosperity,” Art Laffer and Steve Moore call the these years “the greatest period of wealth creation in the history of the planet.” They note that — adjusted for inflation– more wealth and income was created during this Reagan boom than in any other prior period in U.S. history. That’s right, than any other entire period dating from President George Washington all the way up to Ronald Reagan.

But Barack Obama is doing exactly the opposite on each of these four points:

–He is still promising tax rate increases, at least by letting the Bush tax cuts expire.

–He just passed the greatest increase in government spending in the history of the planet.

–He is promising massive increases in regulatory burdens, including global warming cap and trade regulation that would cost the economy another trillion dollars a year.

–The Fed is already furiously reinflating the money supply, sowing seeds of further havoc in the future

I like this statement : These four components produced an economic boom...... "85-2007. I also liked the deregulation part saving us money. Deregulation has worked really well hasn't it especially withrespect to corporate/banking interests? But I know, I know, that darn Dem. minority jumped in there in 2008 and spoiled those 22yrs. of Reaganism/advancement. What relation to Reagan is this author?
 
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