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A Tale of Two Leaders and Two Recoveries

October 16, 2016 in Economics 101, Uncategorized

Before providing Facts of Crises and eventual Recoveries, please, take just a moment to read just a bit of the background to get some perspective. 

Many don’t realize that two years after Reagan’s inauguration, his popularity was declining quickly.  The economy was not improving fast enough for anyone’s satisfaction.  Most people failed to understand that Economic problems are built over time.  They don’t just pop into being overnight.  Not, can even the best, absolutely perfect policy bear fruit overnight.  Positive economic turnarounds grow gradually.  That is a simple fact of economies.  So, two years into his administration, there had yet to be seen any of the substantial economic improvement that the country was counting on.  

Calls for changing tactics and policy were everywhere.  He was being considered a failure and was faced with non stop pressure to change course!  Instead of doing that which was politically expedient, Reagan did what he knew was right!  Without Reagan’s unwavering dedication to pursuing his policies and steadfastly implementing the economic principles that had become so unpopular, the Reagan miracle would not have occurred.  The political price he was paying was enormous, but he stuck to his guns.  In the end, both he and the country reaped the rewards. 

ISN’T THAT WHAT A LEADER DOES!  Many can rightly, say the same of Obama.  In spite of much political fallout, he continued on course ignoring immense political pressure.  I applaud the his persistence, but was he leading down the right path?  But there’s a huge and fundamental difference between the actions of Reagan and Obama.  Reagan’s policies had some historical evidence that they would prove to be effective. That is not true of Obama.  In fact, the opposite is true.

We’ve all hear of the roaring 20s?  Reagan’s policies were similar to those that created that economic boom  i.e. low taxes, limited regulation and government spending.  The Reagan prescription resulted in one of the most prosperous times in our history.   

Even Bill Clinton implemented a variant of the Reagan principles when he finally acquiesced to conservative pressure and agreed to changes to tax, social and spending policies.  The result?  An economy that turned around and a deficit that improved.  Go back even further to John F. Kennedy.  What did he do?  Massive tax cuts, even while concentrating on strengthening our defenses.  The result?  Economic growth and additional revenue to the government.

Obama policies? What did he do?  When faced with his economic crises, and it was large, to be sure.  However, Obama, chose to do precisely the opposite of what has proven, time and again, to work.  He repeated the depression like failed socialistic policies that actually prolonged the great depression… Massive spending, Jobs programs, Increased taxes, Massive borrowing… and surprise, surprise, he also achieved depression like results!  i.e. Just about the most prolonged economic malaise of our history and unquestionably the WEAKEST recovery in our history.

CARTER, REAGAN AND OBAMA- Following are historical facts that can be easily verified

AT THE END OF CARTER’S ADMINISTRATION… an administration that relied on standard liberal policy,  the country was suffering with the following…

  • * Interest rates of 18% and prime rate peaking at 21.5%
  • * Inflation of 13.5%
  • * Unemployment on an incredible upward spiral i.e. May of 1979 it was 5.6% and by May of 1980 7.5% and rising quickly.
  • Under Carter, the POVERTY RATE soared by 33% from 1978 to 1980 (when Reagan took office).

WHEN REAGAN TOOK OFFICE, not only were things already bad, they were getting worse, quickly.

As with Obama, Reagan inherited a problem, a big one.  Big remember, no issues are solved overnight. Not by Reagan and not by Obama.  Bad policy can take years to really know they are bad, and good policy can take years to bear good fruit.

But if policies are on the right course, the economy will eventually follow.  The wrong policy will lead to what Obama gave us… the most anemic, “recovery” in the history of the US.  

And yes, it is somewhat better now, but not because of his policies, but rather in spite of them.  Realize, the US system is historically the strongest, largest economy in the world.  Unless fundamentally changed, it is impossible for it to be kept down forever.  But quite frankly, when you examine the results of left wing policies, isn’t that little by little, what has been happening?  Isn’t that what Obama actually say he would do?

Compare the Policies and RESULTS of Obama and Reagan.


  • *  Cut taxes
  • *  Reduce Spending
  • *  Deregulation, including elimination of price controls on oil and gas. This allowed markets and competition to determine prices, rather than our “all knowing bureaucrats”.

Of course, true to script, liberals lambasted him as giving a gift to the rich of tax cuts, putting our safety in jeopardy with deregulation and crippling the ability of our government to act because of lower spending and diminished revenues caused by tax cuts.  The only problem with that assessment was that it was untrue… but like Hillary and Obama… the facts didn’t matter much.

So, what were the results of Reagan’s “heartless”,  “radical policies” of lower taxes and less regulation?

  • Thanks to de-regulation, consumers saved an estimated 100 billion per year in lower prices. Production soared and the price of oil declined by approximately 50%
  • Nearly 20 million new REAL jobs were created.
  • Employment dropped to 5.3%.  Because people *actually found jobs*; NOT because they stopped looking, as is the case in the Obama economy.  Note: When one becomes discouraged and stops looking, for work, they are no longer considered “unemployed”.  See… http://allsolutionsnetwork.org/blog/obamas-economy-unemployment-drops-isnt-this-great-news  
  • Within 2 years of Reagan’s presidency, ECONOMIC GROWTH was almost 6.8%, almost SIX TIMES!!! the average we’ve been getting under Obama’s policies!*
  • PLUS… due to that economic Growth, i.e. more jobs means more tax payers, which creates an increased tax base, which creates more revenue, because… Even though the Tax Percentages were lower, the revenues to the government were increased.
  • With increased revenues, the government can do more for the poor right??  So why do liberals always see the solution to everything as being a Tax Increase, when we’ve seen that lower taxes generate higher revenues??  


  • A Simple Explanation that can be understood by anyone.
    • FACT– If you have less money to spend, you spend less money…
    • Higher taxation, takes money out of citizen’s pockets, So…
      • Consumers buy less i.e. fewer cars, houses, clothes, go out to eat less, etc…
      • So, Companies earn less;
      • Since they earn less, they pay less taxes to the federal coffers, resulting in less federal revenue:
      • Since business is down and they have less income, they must cut expenses, which usually includes slicing payrolls and laying off workers… who now don’t pay taxes so even less government revenue!
    • So now we have fewer workers:
      • Fewer tax payers means a reduced tax base so less money flowing to the federal coffers…
        BUT WE NOW HAVE… more EX workers who are now receiving unemployment and Welfare.

        • So, we not only have less money flowing into the federal accounts…
          • At the same time, there is more money flowing out of those accounts because the Feds are now paying additional unemployment and welfare benefits… That’s right, additional expenses that were directly caused by increasing taxation to increase revenues.
            • Now, because of the increase in taxes, the government is now receiving fewer tax revenues, while at the same time, they have increased expenses!!! 
            • AND NOW because the government has less tax revenues available and higher expenditures so need additional income… What is the Liberal Solution??? ANOTHER JOB KILLING TAX INCREASE!!!  That’s liberal thinking!  see http://allsolutionsnetwork.org/blog/the-reality-of-taxation
              • Directly from the Congressional CBO as of 8-23-16
                As of 8-23-16 we now have reached the highest level of debt relative to our economy in the history of our country! This is in spite of the fact that we are one of the heaviest taxed countries in the world.  And the liberal solution is more taxes???

Liberal politicians are provably NOT concerned with effective policy… only getting and keeping power!  Think about it… We are one of the highest taxed countries in the world, but we have never been in so much debt.


Does anyone really think that democratic leaders are too stupid to recognize the fallacy of their policies? Of course they do… but they also know who their supporters are and what it takes to keep their jobs.

For liberal leaders, job security is dependent on the size of their lies!

Think about it, why does Hillary lie? To hide the ugly truths of what she does and what she believes. Neither is good for this country, but amazingly enough, those lies might put her in power

Liberal lies that persuade the uninformed electorate is much of why our government has been failing. Having more of our electorate understanding how this country really works is vital to our nation’s future.

President Obama has chosen to EXACTLY the OPPOSITE of what Reagan, Kennedy and even Clinton proved created economic growth.  Yes, it’s finally getting better, but not because of Obama, but rather in spite of him.   The intrinsic power of the US system makes it almost impossible to keep it down for long… There is no doubt that his policies slowed down our economy and our recovery.

*  Here’s what Obama policies have given us.

  • Fact- For every person that found work, 4 lost hope and stopped looking. 
  • Fact- After 4 years in office we had experienced 43 straight months of 8% plus unemployment, the longest stretch ever recorded!
  • Fact- We are still experiencing the worst most anemic recovery in history.  Yes, in spite of the great and inspiring disingenuous speeches, to the contrary, this remains a fact.  
  • Fact- Even with the recent supposed “DROP” in UNEMPLOYMENT, it is due mostly because of the fact that those who get so discouraged that they stop looking ARE NOT considered “unemployed”.   

*THE DESPICABLE DECEIT OF UNEMPLOYMENT RATES… How the unemployed are calculated*  
Unemployment rates are calculated in such a fashion that as “joblessness” goes UP, i.e. when one Stops Looking, they are no longer considered unemployed!… So the more workers who get discouraged and give up, the lower the Unemployment “rate” becomes!  And Dems take credit for it!    I wonder?  Is this is an accident?  or another lie to keep voters in the dark?

The Obama policies are responsible for the lowest overall job participation rate in 38 years… and for men, the lowest in history!… and that includes the tragedy of the Great Depression!  And the dems run around talking about the low unemployment rate!!!

…  Dems have used the fact that hundreds of thousands of Americans, your neighbors, your friends, our children; LOST HOPE; they became so discouraged they gave up looking (thus improving the unemployment number)…  Then our president and DEMS use their loss and despair as EVIDENCE that their policies work, are good for the country and they deserve to stay in control.

Millions of uninformed Americans actually do not know better and buy this garbage and VOTE based on this lie.
http://allsolutionsnetwork.org/blog/encourage-informed-voting  PLEASE DON’T BE ONE OF THEM!


*It is also proven that higher taxes cannot solve our problems*.

WHAT DOES HISTORY PROVE WORKS?  The history of the US and the rest of the world, (China, Greece, the USSR, Venezuela, and every country that’s tried both)  has shown repeatedly that there is a fundamental set of diverging governmental policies; one that creates strong economies while increasing government revenue and another that does not.  

When government controls everything, we see that countries and people suffer.  The more government controls, the more inefficient and less prosperous a country and its people become.    One of the most obvious proof of this simle concept is the divergence between North Korea and South Korea.  

  • South Korea is a bustling prosperous successful capitalistic society.
  • North Korea is a corrupt, failing dictatorship in which the government makes all decisions and is ridden with abject poverty and starvation.  
  • What is the difference between the two?  Nothing at all!… UNTIL you factor in the fact that

In the history of the world, Socialism nor anything like it has ever been successful  for more than a generation or two.  It takes time for that particular poison to take effect  but it always kills.  http://allsolutionsnetwork.org/blog/is-government-the-answer

The fact is, other than building an army, there is virtually nothing the government does, that could not and would not be done more efficiently by private parties. Just a few quick minutes thinking of government operated services vs privately operated services: 

  • Compare the average hospital (prior to Obama Care) with the ongoing situation with VA hospitals.
  • Does anyone really think that a for-profit company would not be able to serve the public better and more efficiently than the beloved DMV?
  • Compare student learning in charter schools vs public schools.

 Is it any surprise that we are getting EXACTLY the opposite results that were obtained by Reagan policies? He believed in the Genius of people over the control of government.

Is it possible that Obama and the democrats are more in love with a quasi-socialistic ideology, personal power and control than preserving the American ideal of freedom and opportunity?   All anyone has to do is consider that mountain of lies spewed by Hillary and Obama of the last 10 years.  I have to ask this.  Even assuming you love the ideas put forth by Hillary, why would it matter?  She has proven she will lie at anytime for any reason, as long as it is perceived to benefit her.

ONE MORE QUESTION… The Obama policies are proven to be catastrophic to our economy.  Why did he, at no point, pivot to try something that might work?  Almost 8 years of Obama’s tax and spend policies have accomplished little other than creating the largest debt that has ever existed in the history of man… Did you know that you, your spouse and each of your children are in debt to Uncle Sam to the tune of well over $150,000 EACH???     http://allsolutionsnetwork.org/blog/economics-how-much-do-you-owe-uncle-sam  Obama and Hillary probably forgot to tell you that those things they are promising, really aren’t free?  Or is that just another despicable lie? 



  • Is it possible that like Hillary, who says one thing to the public, then another to donors, that Obama is just lying to us about what he really believed?  Is it possible he has always had a hidden agenda, as we now unquestionably know Hilary does? 
  • The  beliefs and principles that drove Obama were fundamentally different from those of every other U.S. president.  When one considers Obama’s formative years, how could anyone expect otherwise?:

Although, well hidden, the foundation of Obama’s belief system bears little relation to the principles on which our nation was founded, namely capitalism.  He actually taught a course on Rules for Radicals which is basically a playbook for how to overturn the American way.  please see… http://allsolutionsnetwork.org/blog/rules-for-radicals-saul-alinsky  

How could any U.S. president possibly have such a mindset?  

Obama’s father was more than a socialist, (a concept anathema to the American way of life), he also wrote extensively in favor if it.   Of course, that doesn’t PROVE anything about Obama.  However, Obama himself states that in college he sought out Marxist professors, attended socialist conferences at coopers union, etc…

For any Obama apologists who tries to assert this was just a youth who was intellectually curious about other philosophies and not actually reflective of the well rounded intellectual he became; realize, he also launched his political career in the living room of a terrorist and self-described Marxist, William Ayers.
Ok, yes, he says he hardly new him and he was just in a house that Ayers was also in. Maybe?But then there is…

  • * 20 years in the church of reverend Jeremiah Wright?
  • *His long time friendship with felon Tony Resco?
  • *Right hand man was soon to be felon Jon Corzine?

For those who simply believe that he could not possibly actually have the kind of mindset or character implied by these facts, let me ask a simple question…

Do the people you choose to surround yourself with, provide any insight as to who you really are?  We all know the answer to that is yes.  With that being the case, how could we be surprised at Obama’s governing tendencies when we see… the Friends and Appointments of Obama. http://allsolutionsnetwork.org/blog/the-company-we-keep-friends-and-appointments-of-obama  


Are they more concerned about equality of result rather than equality of opportunity?  BUT… THAT’S NOT THE AMERICAN WAY… IS IT?

 I can’t get in the head of Obama or any other Democrat leader; but generally, actions and our associations reveal more of who we are and what we think, than do campaign speeches.  HIS FRIENDS SAY A LOT.


Please, share this with everyone, Twitter, Facebook, Google+ Linkedin, etc… Remember, all that is required for tyranny to prevail, is for good people to do nothing!. Please help… share the knowledge.


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