Is It Time Reaganomics Once Again?

When Ronald Reagan entered the White House in January of 1981, the nation’s economy was in a tailspin from the disastrous administration of Jimmy Carter.  He had to do something and do it quickly.

The result has come to be known as Reaganomics and consisted of four basic things.

  1. Reducing taxes for everyone, not any one class of people over another.
  2. Regulation reduction in which he did away with many federal regulations that proved to be unnecessary, burdensome and often hindering to a struggling economy.
  3. Stabilize the US monetary system by working with the Federal Reserve.
  4. Curb federal spending by setting limits on expenditures and restructuring some government agencies.

By Reagan’s second term of office, the economy had turned around and led America into one of the greatest periods of economic growth and prosperity in the nation’s history.  Reaganomics was like bringing the people into the land of milk and honey.

Today, the milk and honey have been replaced with muddied water and bitter herbs.  Obamanomics has steadily taken away many American’s ability to buy milk or honey.  There are families doing their best to try to live on macaroni and Ramen noodles with an occasional hot dog thrown in for luxury.

While all of the presidential candidates talk about how they would help the economy, perhaps it would behoove them to turn to a program that was implemented in the real world and proven to be quite successful.  After all, if it worked once, it just may work again.


Comments

comments

  • daves

    They forgot the war on the working class that President Reagan started. You know - the reason salaries at the top have gone up 400% while middle class wages have actually gone down when adjusted for inflation.

    That really set our economy on fire. At least for some.

    • bob Fowler

      I believe that the actual percentage is more closley to 700%. Workers wages have remained stagent for the last 30 years when adjusted for inflation. Reagan ushered the era of greed and elitism. Yes the economy {9(of the elite) boomed, but thousands of workers lost their jobs and many more thousands lost their pensions as the crooked executives of many companies stole the money from the retirement funds, while many others failed to pay into the retirement funds as required by law. But with an elitist in the President's office, who was going to enforce the law. He surely would not. He had already acted unlawfully when he fiere PATCO.

    • Will

      Hey it sounds like you've been liberalized. Open your eye's Friend.

      • Mark in LA

        What do you think looking the other way on illegal immigration, an eventual fraud ridden amnesty, guest workers and free trade did to the American worker's pocketbook? These were all policies put into motion by the Reagan administration. Reagan may have been too stupid to understand the long term consequences of these polices but you can bet his trainers understood them.

        • TerryT

          You mean the Democrat party amnesty that they SWORE would be the last one! so since he was lied to, gee he actually took someone at their word (i know naive considering it WAS Democrats). I am from California, he left it with a surplus to be wasted by his successor. the US was left with a good budget, but was again destroyed by those who thought they could do better. Reagan actually listened to TRAINED and EXPERIENCED people on things like the economy. Democrats listen to professors who might have the training, have no real life experience, just their theories.

        • daves

          "I believe in the idea of amnesty for those who have put down roots and lived here, even though sometime back they may have entered illegally," Ronald Reagan

        • Mark in LA

          More Reagan myth kool-aid drinking. NOBODY can deceive the President get it NOBODY. Reagan was advised by both Peter Brimlow of Vdare and John Roberts about how bad that amnesty would be. However, the worst most fraud ridden part was put in by Republicans at the behest of California farmers. Senator Pete Wilson did that. Just show up with a pice of paper saying you were a fieldhand for 6 months and you were in. Alan simson wrote that it was the Reagan Administration's James Baker who told him amnesty first when Simpson was having trouble getting Republicans to agree. Simpson was thinking about a trigger of some sorts and Baker told him no amnesty first.__The Republicans thought the Mexicans would be their n***ers after the amnesty and they would have a solid voting block to counter the Democrat's blacks - people voting reflexively for the patron. Brimlow knew better but he wasn't listened to. Why do you idiots persist with the Reagan mythology - his actions showed he had nothing but contempt for working people. All he ever wanted was to go to A list parties and never work. When the movie gig ran out he tried pitchman, when that dried up he did the SAC gig. When that dried up he did politics. He was as useless as an artic day was long.

    • 1599

      Yeah, I remember those union busting years too. Thanks for reminding us Dave.

      • TerryT

        Unions NEED to be busted. someone who runs a machine gets paid 50-90 an HOUR that is more than ludicrous. the pensions etc are driving companies out of the country, and the liberal tax plans are continuing that trend. When a company like Hostess files for Bankruptcy twice in less than 10 years, and the main issue they have is their pension liabilities, that should tell you something. Unions are no longer needed or viable, they are only in it for the money they can throw behind the candidate who will promise the most for their union, not the vaunted "Fairness" they claim they are for.

    • Mike

      The reason why the working class has not fared well recently is not because of Reaganomics. it is the Progressive Liberalism of tax and spend and government give a way that has gone on for far too long. There is no reason why someone can't do well in this country if they work hard and get the education. The lazy slobs who want a hand out, free this, free that will not get ahead. The OWS crowd do not want to excel at anything and want everything handed to them on a silver platter. Job creators will hire if the government gets out of the way. Regulations out the cazoo and burdensome taxes will not create private sector jobs. Unions are also big job killers because of work rules, guaranteed pensions which make labor uncompetitive with the rest of the world. Right to work states are much better and they create jobs.

    • Homie

      Not to mention, that Reagan doubled the national debt.

  • Mark in LA

    What's behind lie number 3?:

    Stabilize the US monetary system by working with the Federal Reserve.

    Jimmy Carter put Paul Volker in as Fed Chief in 1979 knowing he was going to try and crush inflation. Carter got the worst of it and Reagan was lucky that Volker losened up after 4 year, 2 of which were on Carter's watch. Paul Craig Roberts and Jack Kemp repeatedly begged Volker to lower the rates. Reagan to his credit did try to lean on Volker but giving Reagan credit for being in the right place at the right time is hardly deserving of kudos.

    • just sayin

      You have to be kidding!

      • Mark in LA

        Instread of showing your ignorance use some actual facts to refute it.

    • Mark in LA

      Reagan DIDN't try to lean on Volker. Sorry about the typo. Carter did lean on the previous Fed chief to get him to resign in order to put Volker in. Anybody giving Reagan the credit for ending inflation is a fool or a Republican shill.

    • 1599

      One thing is certain, you could earn some hefty intrest rates on your savings under Carter. That's how my daughter went to college without going in debt.

      • Mark in LA

        Yes some smart people got 10 year CDs at 16% and if you bought 30 year Treasury bonds you also made money on the principle as the rates came down all through the 80s. The problem I have is the nonsense of assigning all the blame to one side and all the kudos to the other when there hasn't been a dimes woth of difference between them since the 50s. People also forget that Carter also spent more on the military when he came in and he greenlighted the B-2 bomber. He also deregulated just as much as Reagan, including the Savings and Loans - just not as much as Reagan for the S&Ls. They both should have shut the S&L industry down but it had too many bought and paid for Congressman to try and do that.

        This chart shows the Carter "period of neglect". However it was created by the Heritage foundation and is adjusted for inflation so it makes Carter's increases look smaller than they were in actual dollars at the time since the inflation under Carter was much higher than for any other President.
        http://philebersole.wordpress.com/2010/11/18/mili...

        • 1599

          Inflation may have been higher then but I didn't feel it as much as I do today.

  • 1599

    Here we go again, blaming Obama for this current economy when in fact there have been several presidents, Democrat and Republican since Reagan who contributed to this problem. The four points listed in the article do not go far enough in correcting this economic nightmare that we are enduring. There is only one candidate who is proposing radical change and that is Ron Paul and he does not go far enough, especially in the "free" trade area. Incentives have to be given back to manufacturers so that we can begin making things in America again.

  • chvietvet

    Reaganomics was a disaster for America. Reagan broke the record of Franklin D. Roosevelt for increasing the national debt. He was the biggest fiscal liberal in the history of America, and it was not until the George W. Bush administration that his horrible record for wreckless spending was broken. His deregulation led to such catastrophes as the savings and loans scandals. Even though he squandered billions on an ever more corrupt bureaucracy, he said that he had no money to provide veterans of the Vietnam War with the benefits they had earned, and he continued the program started by Jimmy Carter to kill off the veterans through employment discrimination leading to the homelessness of hundreds of thousands of veterans, a phonomenon never seen to that extent in any civilized country. Most of those who became homeless perished of starvation, exposure, and untreated diseases decades before reaching the average age of an American. Reagan's government spread the slander that the homelessness was caused by the veterans' own psychological problems, substance abuse, or lack of qualifications, in order to cover up the fact that they were being murdered by the government they had defended in war. Reagan's OPM illegally abolished veterans' preference, and his Department of Labor made it a policy to consider only jobs paying less than $25,000 per year as "suitable for veterans." Reagan paid billions of dollars to colleges and universities at which servicemen and veterans were openly insulted and barred from faculty positions. The social breakdown of America continued under Reagan, and the breakdown of the family as an institution increased dramatically. Although he is sometimes referred to as a conservative, his actual record shows him to have been the most liberal American president up to that time.

    • Mark in LA

      chvietvet - There was an organized campaign to paint him as a conservative. Many paleocons have come to the conclusion that what he really was was a right wing liberal. He was for massive military spending and a belligeent foreign policy but was a social liberal at heart.

    • 1599

      Thanks chvietvet. The truth behind Reagan is coming out.

    • TerryT

      gee both presidents that were involved with wars (Reagan the Cold War which he "won", and Bush the Iraq/Afghanistan, which we won) look at the rest of the spending, and they were less than the democratic spending. Wars are NOT a valid debate on the budget as they are not really planned for, also both of these presidents had to rebuild the military after the Democrat predecessor reduced them to next to nothing.

      • 1599

        Did Reagan win the Cold War? Where is America in relation to Russia today?

        • Mark in LA

          Yeah Reagan did it all by himself. All those dead in Korea and Vietnam were ghosts, they never existed. Neither did all those trillions spent on weapons in the 50s, 60s, and 70s. None of that mattered. Reagan gets all the credit even though the USSR collapsed long after he left office - thats what I like about the Reagan myth believers. Nothing bad that happened under Reagan's watch is his fault but anything good within 30 years of Reagan's Presidency is due to him.

    • Small moves

      Most of what you say is incorrect. The reason for the national debt increase was because of a Democratic Congress led by Tip ONiel. He refused to cut spending.

  • bob

    What world economists don't yet know is what causes prosperity or depressions. They live in the opinion and political world of thinking. If you would like to read a bit of the new economic theory replacing Keynes email to <[email protected] It is the premise everyone has overlooked. Wow! And it is in operation and control right now.

  • just sayin

    Wow! That was no fun. I guess it's daytime and only Democrats and Socialists are able to get on the internet!

  • Boletero

    Reading the above comments makes my day!
    I am so relieved to know who is the guilty one!!

    However, arshlocher, what we need to is what the HELL do we do now!
    What needs to be done tomorrow morning to corre the SCREW up by the current admin !!!!!!!!!!!

    Saludos del Sombrero, Vatos.........

  • Pete0097

    I don't know about the merits of "Reagonomics", but in 1982, I was just out of college and unemployed, in the spring of 1983, I had a job and started my career. Many of my friends in school were older, but they didn't get their first jobs until the spring of 1983 either. There just was no allowance for job creation or confidence in the gov't that at least they would be stable to allow job creation.

    • Mark in LA

      Reaganomics had nothing to do with it. We had a serious recession due to Paul Volker letting interest rates rise to market levels after the inflation due of the deficit spending for the Vietnam war. The previous Fed chiefs kept rates lower than the market in order to keep employment high. However, inflation was now in the 12% range and people were spending too much time and effort dealing with it's consequences. The prime rate peaked out at 21% and businesses stopped borrowing. This lead to a severe recession and few people got hired unless you were in the few areas in demand such as computers.

      • 1599

        Whatever the real inflation rate was then was not as bad as it is today. Have you been to the grocery store lately? Interest rates have been way too low too long.

  • bob Fowler

    You hit the nail on the head.

  • disgusted

    We NEED something - NOT the "patches" & that "they" are 'suggesting'!

  • Blair Franconia, NH

    Yes, it is. Obamanomics hasn't worked.

  • ONTIME

    The one thing I myself experienced was that Reaganomics was cut from my life after a mere 8 years and I have been challeging this growing government with all I know since, my sucess has been minimal, the government has gotten far to big, extremely costly and incredibly inept, I am not deterred.

    I am now wishing that primaries were the time when you whupped out your Mr. Potatoe Head kit and built a acceptable candidate, the last two elections have exceeded my patience and the non representation imposed by eltism and incumbency of our failing congress has only added to my disgust with the courts and the activism within. So now I push with few tools, to Re_Pare this faulty display of the Republic founded by our forefathers and try to convince my peers and brethern that the loss of this Republic would be monumental and a very long time before we could ever return to try again.....Repair and maintenance was not said to be easy, the keepers of freedom know this.

  • William Weldon

    All patriotic Americans, PAY ATTENTION: We must rise up and use all our talents and resources to back the candidates who will preserve the American way of life. We need elected officials who will guard the Constitution and preserve our rights. Get these Democrat slackers out of office before they destroy our economy and turn us into a socialist nation. RISE UP!!! VOTE!! Exercise your right to vote. So any other countries don't have voting rights. Be grateful we can vote. I knw the econmy is bad and money is tight; but please give as much as tou possibly can to support the candidate of your choosing. Last week Obama's election fund topped eight hundred million dollars! Please give. Volunteer to help your candidate's campaign by making phone calls, stuffing envelopes or just helping in anyway possible. As the Minutemen sacrificed to make this country, and as the heroes of our military fought and still fight to preserve our way of life, let us sacrifice also! THANK YOU !!

  • tod

    reagan was a Union Leader for the Actors Gill,and he didn't tear the wall to set them free,he tore down the wall to let them in Washington !!! Dr.Ron Paul 2012 for Our Last Chance for Our Beloved Constitution !!!

    • Frankcastle1958

      I was once a Union member too... SO WHAT??? A REAL MAN, is one who SEES he made a mistake, and CORRECTS it.
      Obama seems to think he is INFALLIBLE.... men like THAT, are DANGEROUS, and STUPID....

    • Frankcastle1958

      by the way.. that's "Actor's GUILD"... a GILL is something a FISH has.... LOL!!!

  • Anne S

    Wow this web site has been infiltrated with liberal liars and historical revisionists.I guess all the conservatives are at work. I am retired. I got out of college in 1982 and every interwiew I went to they said when can you start? In all fairness I was a Registered Nurse at the time. Oh that's right, you have to pick a major that actually leads you to a job!

    • Mark in LA

      And you think Reagan and Reaganomics had something to do with it since you graduated when he was President? Well guess what, I graduated in 1978 and I got a job under Carter - I guess I owe my job to him and not to the fact that I got a degrees in Match and Computer Science. Stop with the liberal bad / conservative good crap.

      • 1599

        I agree Mark. I had it pretty good under the Carter years, even though I had an 11% mortage.

    • Frankcastle1958

      The Liberal buffoons are out in force!! I like, how they DENY provable facts... that "Reaganomics" WORKED...and at the same time.. INSIST, we do the LIBERAL plan.. which FACTUALLY can be showed, to NEVER have worked...anytime, anywhere, in HUMAN RECORDED HISTORY of the ENTIRE PLANET!
      How blind and deluded,and Anti-Constitutional, can the members one one party BE?

  • SEAN MURRY

    It is time for for us to get out of this mess caused by Obummer.

  • TheLibtardsAreHere

    Reagan was awesome, but now unfortunately is not with us any longer (deceased). We need a conservative that will shrink government, and lower tax rates so that the "fraction within a fraction of the top1%(from Dingy Harry Reid)" will start hiring Americans once again and make this country thrive and get back our status in the world.

    We do not need someone that is perfect, but instead we need a conservative Human being (Jesus the only one ever being perfect), that will lead us into the next phase of America, not the LAST.

    No Libtards please, you are what is wrong with this country and all should leave.. Now in saying that, not all Democrats are Libtards,,,,
    Still, we need a constitutional conservative that has Balls... big, huge ones that will not waiver when the times get tough.. One that will not flinch when Vetoing something on his desk that will harm his country!

    We need someone that will tell a world leader like Mahmoud Ahmadinejad NO, and we are coming to get them or we will blow all Nuclear sites up, as there are way too many in existence now...

    WE NEED A TRUE CONSERVATIVE, NOT JESUS, NOT REAGAN, BUT A MAN (Seeing as all of the women are now out of the race, except for Romney) that has the USA'S GREATEST AT HEART

    May God save these great United States of America and have mercy on our souls for what WE THE PEOPLE might have to do to save this great Christian land

  • bett

    2002 predictions to Congress came true but they still sold us out, see clip and vote us out of the New World Order http://www.youtube.com/watch?v=ifJG_oFFDK0

  • ozwizard

    brett - ???????????????????????????????????????????

  • Carol

    I just wish there was another Regan on there but there is only one and sadly that is a fact.

  • http://www.linkedin.com/in/GaryMallast Gary Mallast

    Yeah. I agree.

    And the only one pushing an agenda anything like that is Ron Paul.

    Mitt Hussein Romneycare is just Obama light.

    Mr. Gingrich has a remarkable talent for political self-destruction and recovery. But we can't rely on him being in recovery mode next November. Besides his economic proposals are wimpy.

  • uclown

    You liberels ,2 things I went for a morgage in 1980 101/2 percent interest to lose that morgage the next one was at 221/2 percent Igot the first one.Second, neither the soviets or Iran mess with Reagan.Now the iranains threaten us the Russians warn us the arab brotherhood use us and the Chicanese own us.I have not voted my party since the peanut farmer.I allmost went with this clown.Then I started listeing to what he was saying. IT WAS BUBBLES! He had no idea what he was saying or doing.He just wants to be in power.he cares nothing for America or for its citizens. The constitution is in his way. We will never get our freedom back like we want,it will take 100 years to undo the mess the libs and progressives have gotten us into.But I don't blame them I blame me I went to sleep and let it happen. May God forgive us for throwing such a beatiful constitution away!

  • James

    Ineptocracy (in-ep-toc'-ra-cy) - a system of government where the least capable to lead are elected by the least capable of producing, and where the members of society least likely to sustain themselves or succeed, are rewarded with goods and services paid for by the confiscated wealth of a diminishing number of producers.

    The new definition above describing our Government to a tee is the very reason we must elect none other than RON PAUL for President! He is the only choice, period!

  • cheryl jessup

    You bet we need another Regan and it took him about 3 yrs to start to turn things around. The 90's would have never been so successfult with out the policies in force. He rubuilt our military after Carter almost destroyed it. It not only raised the respect with Americans but made the rest of the workd sit up and take notice. If you noticed Iran let are prisioners free after Reagan was in office. They knew the could screw with Carter but Reagan would not stand for it. He was a strong leader unlike the traitor we have in office.