A good example why it is not a good idea to fight the Feds: Big Spending Reagonomics Stock Market circa 1980s " The Recession of 1982 By 1982, âReaganomicsâ had taken its toll as several banks failed, the stock market plummeted, and unemployment soared in the worst economic recession since the Great Depression. Eventually the economy pulled out of the pit, thanks in part to sound policies from the Federal Reserve Board. Deficits and Debt Although Reagan entered the White House promising to reduce government spending and return more power to the states, he ironically became the biggest spender in American history. Not even Rooseveltâs New Deal during the Depression or Johnsonâs Great Society had dumped so much money into the economy as Reaganomics. Between 1980 and 1988, Congress overspent its budget by more than $200 billion every year, while the national debt soared from roughly $1 trillion to $2.5 trillion."
Well, the President sets the agenda especially a very popular President. In this case, Reagan got his way (big military spending), which yielded a gigantic Bull market.
So I take it you believe the blame for the big-spending Clinton and Bush II years belongs at the feet of Gingrich and Hastert?
No, the blame goes to the President AND congress. The Congress ensures enough pork for their districts, and will strangle the president's goals if it does not square with their own interests and agenda.
Does large font help get your point across easier? Or are you just pandering to those who need glasses?
The major point is that big government spending is known to create jobs and move economies out of recessions. Obama's will be bigger. He can afford to, since there is no possibility of inflation any time in the near future.
If Reagan had gotten his way, spending on entitlements would have been smaller. He didn't get his way.
The Recession of 1982 was not solved by government spending. First of all, it was caused by Volker's tightening the money supply to squeeze hyper inflation out of the economy. The top marginal tax rate was cut from 78% to 28% and that encouraged investment rather than tax avoidance. Tax cuts and lower inflation led to the boom of the next two decades. Whoever wrote that garbage you excerpted from is brain-dead. And uh...I guarantee you that when he compares Reagan's spending to FDR's, he's doing it in meaningless nominal dollars, not real dollars. Plus, what the hell does this journalist mean by "dumped so much money on the economy". If Reagan had dumped a shitload of money on the economy at that the time the journalist claims, we would have had Zimbabwe style inflation.