From: http://www.huffingtonpost.com/peter-birkenhead/reagan-legacy-debt-ceiling-crisis_b_907487.html?ir=Media

“a much less visible, much more ruthless Reagan ignored the raging AIDS plague, de-funded much of America’s safety net, nominated candidates to run agencies whose missions they opposed, fired 11,000 air traffic controllers and decertified their union, increased the number of American families living in poverty by a third, tripled the national debt, lied about selling weapons to Iran in exchange for hostages, and, ahem, raised the debt ceiling to one trillion dollars for the first time in the nation’s history.”

Ah, ,memories:

Economy grew except when it didn’t – 81 recession was not affected by massive tax cut of 8/81 – indeed it is not until the massive tax increase of 82 takes hold that the expansion begins. Indeed from time of administra­tion start in 81 to end of term Reagan has a good, but rather average, growth rate of 3.3% – but he did get a bit of growth from all that deficit spending – didn’t he? And he collected 70% of the tax he would have collected under the Carter tax law – Carter by the way getting a growth of 3% annually despite massive oil price increase shock, and its following inflation, and Volker putting the screws on monetary policy to kill growth.   Heck Reagan blamed Volker for his recession .

Then there was the S&L bubble bust in 87 that claimed the G H Bush administra­tion’s growth rate – but you did get some growth. The Greenspan change to the CPI calculatio­n in 83 had a lot to do with that growth rate – every hard drive capacity increase was treated as a drop in inflation. And Greenspans “substitut­ion” that says steak goes up and you move down to hamburger and the CPI has gone down – that sure helped those growth numbers post Reagan. 

Manufactur­ing begins to speed up its going overseas as the regulation­s and tax laws that prevented that exodus are not enforced under Reagan. Job formation at 70% of the Clinton rate, with Clinton doing it without massive deficits.

And somehow the above means we need austerity today and the extremely low tax rates continued – rules Reagan never followed.

 

papau

papau

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