When Ronald Reagan took over from Jimmy Carter in '81, things were actually worse economically compared to when Obama took over from George W. Bush in '08.
Consider these three important comparisons of economic indicators, then and now:
- Unemployment was at 10.8% versus 7.7%
- Inflation (Consumer Price Index) was at 13.5% versus 2.7%
- Interest rates (prime rate) was at 21.5% versus 3.25%
In other words, Reagan inherited a bigger mess. Yet, there's this chart of job growth:
Net job growth has declined under Obama. And by the end of the second year of their terms as President, economic growth under Reagan averaged 7.1% , under Obama an anemic 2.8%.
So, how did Reagan manage it? Across-the-board tax cuts, non-defense spending cuts, a restrained monetary supply, and deregulation.
What's Obama done? Tax increases, spending increases, a massive money-supply increase through “quantitative easing,” and an explosive increase in regulations.
Game, set, and match to Ronald Reagan- and a sound, conservative economic policy.
This post has been edited after publication.