How often have you heard a Democrat prattle on and on about how well Barack Obama has done with the economy, given the mess he inherited? Usually, it’s some version of, “Things are getting better, but the economy the President started with was so awful, so he’s done as well as anyone could expect.”
When Ronald Reagan took over from Jimmy Carter in ’81, things were actually worse economically compared to when Obama took over from George W. Bush in ’08.
Consider these three important comparisons of economic indicators, then and now:
– Unemployment was at 10.8% versus 7.7%
– Inflation (Consumer Price Index) was at 13.5% versus 2.7%
– Interest rates (prime rate) was at 21.5% versus 3.25%
In other words, Reagan inherited a bigger mess. Yet, there’s this chart of job growth:
Yes, you read that right: net job growth has declined under Obama. And by the end of the second year of their terms as President, economic growth under Reagan averaged 7.1% , under Obama an anemic 2.8%.
So, how did Reagan manage it? Across-the-board tax cuts, non-defense spending cuts, a restrained monetary supply, and deregulation.
What’s Obama done? Tax increases, spending increases, a massive money-supply increase through “quantitative easing,” and an explosive increase in regulations.
Game, set, and match to Ronald Reagan- and a sound, conservative economic policy.
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Michael Hausam is a writer for The Independent Review Journal.