Winstonm, on Mar 2 2009, 01:20 AM, said:
PassedOut, on Mar 2 2009, 12:42 AM, said:
luke warm, on Mar 1 2009, 03:31 PM, said:
winston, would you say that the recession reagan inherited was greater than, equal to, or less than the one obamba inherited?
Reagan got the economy going again with huge amounts of deficit spending, so that strategy clearly works.
You forgot to add "in the short term" after "definately works".
Yes, it is a short term solution, and I should have said so (even in a one-liner post).
Reagan continued to stimulate the economy through deficit spending long after the recession had ended, believing that "voodoo economics" would save the day. To be fair, though, it's not clear how much analytical ability Reagan retained at the age he took office: his budget director, David Stockman, documented the old actor's inability to grasp the most rudimentary financial concepts.
luke warm, on Mar 2 2009, 06:12 AM, said:
the spending came later, the tax cuts came immediately
The spending was already in place, so the tax cuts created deficits immediately.
Unlike Reagan and the voodoo economics people, Obama has made clear that he understands that the deficit spending must be reversed after this crisis. Because of the huge unnecessary Bush deficit he inherited, Obama's task is much more difficult.
But everyone with common sense knew that the Bush tax cuts were going to lead to the present situation. Fortunately the US has a smart, honest, analytical president now to tackle it.
The growth of wisdom may be gauged exactly by the diminution of ill temper. — Friedrich Nietzsche
The infliction of cruelty with a good conscience is a delight to moralists — that is why they invented hell. — Bertrand Russell