Reagan’s 4th Year in Office: 7.2 GDP – Obama’s 4th Year in Office: 2.2 GDP
The Death of Keynesian Economics… Reagan’s 4th Year in Office: 7.2 GDP… Obama’s 4th Year in Office: 2.2 GDP
Yesterday we were slammed with further proof that Keynesian economics is a bust. The government reported that the first quarter GDP this year dropped to 2.2 percent.
The Obama-Pelosi regime bet the farm (and a trillion taxpayer dollars!) on a big government Keynesian stimulus package and it failed. Back in 1980 during a similar economic downturn President Ronald Reagan took the exact opposite approach as Barack Obama. Reagan cut taxes and regulations. When Reagan signed the Economic Recovery Act at his ranch in 1981, it was the largest tax cut in American history. And it was a massive success. Jobs were created. In 15 months in 1983-84 job growth was 4,655,000, while in the comparable 15 months in 2011-12 it was 2,475,000, just a little more than half as many. The average GDP during Ronald Reagan’s 4th year in office was a whopping 7.2%.