Saturday, July 11, 2009

Perspective on the Obama Stimulus

In August 1981, Reagan signed his Recovery Act into law.
He promised to find additional cuts to balance the budget, which
had a projected deficit of $80 billion -- the largest, to that date, in
U.S. history. That fall, the economy took a turn for the worse. To fight inflation, running at a rate of 14 percent per year, the Federal Reserve Board had increased interest rates. Recession was the result. Blue-collar workers who had largely supported Reagan were hard hit, as many lost their jobs. The United States was experiencing its worst recession since the Depression, with conditions frighteningly reminiscent of those 50 years earlier.

By November 1982, unemployment reached nine million, the highest rate since the Depression; 17,000 businesses failed, the second highest number since 1933; farmers lost their land; and many sick, elderly, and poor became homeless.

The country lived through the recession for a full year before Reagan finally admitted publicly that the economy was in trouble. His budget cuts, which hurt the poor, and his tax cuts, which favored the rich, combined with the hardships of a recession, spawned the belief that Reagan was insensitive to his people's needs. (Although it was a 25% across-the-board tax cut, those people in the higher income brackets benefited the most.)

As economic hardship hit American homes, Reagan's approval rating hit rock bottom. In January 1983, it was estimated at a dismal 35 percent. Having failed in his promise to deliver economic prosperity, Reagan's reelection in 1984 seemed unlikely. With a failing economy, hopes for a balanced budget vanished.

While Reagan finally agreed to a moderate tax increase on businesses, he steadfastly refused to raise income taxes or cut defense spending, despite a growing negative sentiment toward the buildup. In January 1983, with his approval rating at an all-time low, the economy slowly began to right itself. Unemployment, as high as ten percent in 1982, had improved enough by 1984 for his popularity to be restored, and
by the November presidential election, it was hard to believe that a second term was ever in doubt.

Source: PBS

5 comments:

Reaganite Republican said...

The Porkulus is a train-wreck… these jobs figures are far worse than the ones the White House warned us about if we DIDN’T pass the bill- so it was passed, and then unemployment soars anyway?

Instead of creating jobs, interest rates were bumped up, the dollar slid… and it didn’t help anybody get any work. Much of this is due to the fact that Obama’s agenda has mortified almost every source of job-and-growth creation in the country.

The Dear Leader couldn’t deliver the type of “temporary, targeted, and timely” bill that he promised repeatedly. Regardless of his image in the MSM, Obama simply lacks the the political stature to control Pelosi and Reid… who hit the trough hard, while bickering like children.

And the lack of GOP co-conspirators exposed Obama politically… this legislation now looks to be a HUGE gamble. And when all this pork-n-welfare fails to generate any real economic gains, the Democrats face a bloodbath in 2010.

http://reaganiterepublicanresistance.blogspot.com

Anonymous said...

Hello !.
You re, I guess , probably very interested to know how one can make real money .
There is no initial capital needed You may begin to get income with as small sum of money as 20-100 dollars.

AimTrust is what you haven`t ever dreamt of such a chance to become rich
AimTrust incorporates an offshore structure with advanced asset management technologies in production and delivery of pipes for oil and gas.

Its head office is in Panama with affiliates around the world.
Do you want to become an affluent person?
That`s your chance That`s what you really need!

I feel good, I started to get income with the help of this company,
and I invite you to do the same. If it gets down to select a proper partner who uses your money in a right way - that`s it!.
I make 2G daily, and my first investment was 500 dollars only!
It`s easy to join , just click this link http://pycyqyqu.kogaryu.com/uwojut.html
and go! Let`s take this option together to feel the smell of real money

Anonymous said...

Hello!
You may probably be very curious to know how one can manage to receive high yields on investments.
There is no need to invest much at first.
You may begin to get income with a sum that usually goes
on daily food, that's 20-100 dollars.
I have been participating in one company's work for several years,
and I'm ready to share my secrets at my blog.

Please visit blog and send me private message to get the info.

P.S. I make 1000-2000 per daily now.

[url=http://theblogmoney.com] Online investment blog[/url]

Anonymous said...

Hi!
You may probably be very curious to know how one can manage to receive high yields on investments.
There is no initial capital needed.
You may commense to get income with a money that usually is spent
on daily food, that's 20-100 dollars.
I have been participating in one company's work for several years,
and I'm ready to share my secrets at my blog.

Please visit my pages and send me private message to get the info.

P.S. I make 1000-2000 per day now.

[url=http://theinvestblog.com] Online investment blog[/url]

Anonymous said...

Glad to materialize here. Good day or night everybody!

We are not acquainted yet? It’s easy to fix,
my name is Peter.
Generally I’m a venturesome analyst. recently I take a great interest in online-casino and poker.
Not long time ago I started my own blog, where I describe my virtual adventures.
Probably, it will be interesting for you to find out how to win not loose.
Please visit my web page . http://allbestcasino.com I’ll be interested on your opinion..