Given the current economic realities, with real unemployment at 14.9% and reported unemployment at 8.2% (the 41st consecutive month over 8%); a $5,000,000,000,000 increase in US debt in 3 years (more than all US Presidents in history combined, nearly $20,000 for every man, woman and child in the US); approximately $16,000,000,000,000 in stated US debt (100+% of our economy or Gross Domestic Product, and over $51,000 for every man, woman and child in the US), nearly $60,000,000,000,000 in total US debt (including entitlement liabilities, or nearly $200,000 for every man, woman and child in the US); gas prices having doubled since 2008 to $3.80 per gallon, home foreclosures having risen to historical heights, the US is in a world of hurt, and in spite of Obama’s continued proffering, the trends are not favorable!.
That said, Mr. Obama has done a tremendous job blaming George W. Bush, and everyone and everything else, for all things economic since his ascendency to the Presidency of the United States. If you say something long enough or if your public relations machine is sufficiently myopic in their message before long the distortions become reality in the minds of the electorate – as evidenced in recent polling. Apparently, the Obama message of blame and distortion seems to have taken hold in America where a majority still blame Bush or believe the President cannot really affect jobs and the economy. Even so, it is time for a reality check that needs to be shouted from every rooftop! Mr. Obama owns this economy as it should have turned long ago, and he cannot expect to turn this economy with his latest ObamaCare Tax.
The economic realities can be viewed through an historical lens. During the Carter Era the US suffered its greatest economic stress since the Great Depression. All economic metrics were at historical highs. Ronald Reagan was elected President amid great economic and global tumult, and within his first term had turned the tide. Below is a brief of why with respect to the economy. As to global tumult, Reagan turned the tide with strength and decisiveness – restoring America to its divine exceptional role of advocating for freedom and liberty!
Stephen Moore of the Cato Institute stated that “no act in the last quarter century had a more profound impact on the US economy of the eighties and nineties than the Reagan tax cut of 1981.” He claims that Reagan’s tax cuts, combined with an emphasis on federal monetary policy, deregulation, and expansion of free trade created a sustained economic expansion creating America’s greatest sustained wave of prosperity ever. He also claims that the American economy grew by more than a third in size, producing a $15 trillion increase in American wealth. Consumer and investor confidence soared. Cutting federal income taxes, cutting the US government spending budget, cutting useless programs, scaling down the government work force, maintaining low interest rates, and keeping a watchful inflation hedge on the monetary supply was Ronald Reagan’s formula for a successful economic turnaround.
In a speech by Milton Friedman to the Cato Institute:, Friedman states that “Reaganomics had four simple principles: lower marginal tax rates, less regulation, restrained government spending, noninflationary monetary policy. Though Reagan did not achieve all of his goals, he made good progress.” This is why entrepreneurs flourished under Reaganomics: lower tax rates and inflation coupled with less regulation favored improved environments for market-based funding, risk-taking, access to labor (leading to greater employment), and a more level playing field between these entrepreneurs and large corporations. Illustrating this, the Heritage Foundation: states that this is why “the U.S. government must allow the entrepreneur to enjoy the rewards of success. If taxes take away most profit, then the entrepreneur will have less incentive to take a risk. If there are great restrictions on how the entrepreneur can use his profit, then there is little reason for the entrepreneur to take a risk. The entrepreneur’s courage to take a risk is what leads to new American discoveries and what drives the U.S. economy forward. Reaganomics knows this. It is one of the reasons why Ronald Reagan has reduced American taxes dramatically”*
*quotes gathered from Wikipedia.
Since taking office Barack Obama has done the exact opposite of Ronald Reagan and we are experiencing the results of his failed economic policies. Barack Obama has no one to blame but himself. Barack Obama owns this economy!
Proven in the policies of Ronald Reagan, the POTUS can positively or negatively have a profound affect on the US economy. Leadership matters; policies matter, and President Obama has through his failed policies severely and negatively affected the US economy. Obama’s spending, borrowing, tax and regulatory policies, energy policy, government overreach, and Obamacare have had their intended effect – to create a more dependent American society; we are becoming a ‘purchased society,’ and as such, we are losing our freedoms and liberties with each passing day. November counts and so does change!
What is Romney’s Plan? See Part II.
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