Why The Obama Administration And Democrats Ignore The Economy And Jobs

When I was watching the State Of Union Address President Obama said it was time to focus on the economy and jobs. Since this address to the American people he has done everything up focus on the economy and jobs. It was just amazing to see him just go right back to healthcare like he did but I know why he did because that is his signature legislation that he wanted past. He believed that his Presidency was dependant on the passage of healthcare.

If President Obama wanted to see how the econmy could be helped he should just look back to President Reagan's econmy and see how he turned that economy around. Reagan's economy was worse than Obama's. Reagan had double didget inflation and unemployment. Reagan's view on fixing the economy was to help the economy get back on tract. He knew government wasn't the answer to the economy getting back on tract he knew that it was the private sector and small business. What he did was cur taxes on business to help them start making products and hiring more people. He cut the top marginal income tax rate from 70% to 28%. He lessened restrictions on business so they could operate better and produce more jobs. Reagan knew how capitalism worked and knew that our economy is based on capitalism which made it the best working economy in the world. He knew once the private sector got going again the economy would inprove and jobs would be produced by small business. If I remember correctly Reagan did a reversal of the tax treatment on small business. This was accomplished by reducing the tax bias among types of investments and increasing taxes on new investments.

Now let me tell you the basis of Reagan's economic policies which were called "Reaganomics." In reaganomics there are 4 principles to his economic policy which were to:

1. reduce government regulation on the economy,

2. control the money supply to reduce inflation,

3. reduce government spending,

4. reduce income and capital gains marginal rate,

By doing all of this Reagan wanted to increase domestic spending while lowering taxes.

Let just describe the economy as Reagan entered his first term in office. There was double digit inflation around 12% and double digit unemployment around 10.8%. His goal to stimulate the poor economy was to cut taxes across the board. All of this that I have just explained is "Reaganomics."

In summery on how Reagan's economic policies turned the economy around are as follows. His economic policies took unemployment from 10.8% to 7.5% and took inflation from around 12% in 1980 to 4.1% by 1988. The GDP under Reagan had 5 quarters of growth at 8.5% after the 1982 recession and then through Reagan's Administration at GDP grew at 9.4% a year. Under Reagan 16 million new jobs were produced.

President Reagan's economic policies and changes brought about one of the largest peacetime expansions in US history.

If President Obama wanted to actually learn how to stimulate the economy and produce jobs he could look back to Reagan to learn something about from a man who knew how to do it. He would see all over this government spending and taxing is only going to hurt the economy and prolong the recession. It will not help the private sector produce jobs either.

With the economy the way it is now makes me want Reagan back now. It is amazing the stark contrast of a conservative and liberal on how they want to help the economy and run the government.