Skip to main content

View Diary: Fiscal cliff deal leaves major economic problems unresolved (115 comments)

Comment Preferences

  •  You are being very misleading.. (0+ / 0-)
    It didn’t work.  Growth averaged 3.4% per year during Reagan’s presidency
    Did you intentionally only want to list the "average"?

    By Reagan's 4th year in his first term, GDP was smoking hot - it hit over 9% one quarter and averaged 7.75%.  The economy was on fire.  It did indeed "work".  Or something did and it was coincidental.

    Whatever the reason, you cannot imply, as you try by averaging, that growth was lackluster under Reagan.  It took a few years, but the economy was booming.  There is a reason Reagan won 49 States and 550 electoral vote landslide in '84.

    •  Talk about misleading (0+ / 0-)

      Yes the GDP did increase dramatically for a very small number of quarters leading up to the 1984 election, but dropped back after the first two quarters of 1984 and averaged 3.7% for the second term.  In that era, it was a common practice to stimulate the economy going into an election so that economy would look strong and Reagan did that.  Real wages, btw, did not increase under Reagan. All the increased GDP went to the top.

      I'm truly sorry Man's dominion Has broken Nature's social union--Robert Burns

      by Eric Blair on Wed Jan 02, 2013 at 11:21:24 AM PST

      [ Parent ]

      •  real wages of the unemployed sure went up (1+ / 0-)
        Recommended by:

        Unemployment dropped precipitously as the GDP went up.

        And it dropped because people were actually getting jobs.  The labor participation rate went up.

        The current lowering of unemployment is from people leaving the national workforce.

        Going from zero income to a steady paycheck sure seemed to count for something back then.  The 20+ million out of work right now might gladly take that, regardless of the "real wage".

        •  You have been reading too much right wing (0+ / 0-)

          propaganda.  When Reagan came into office the economy was improving gradually and the unemployment rate was just over 7%.  His policies then bumped it up to about 11%.  From that point it gradually decreased to about 5% when he left office.  Given the fact that the Volker interest rate increases had imposed a substantial drag on the economy (albeit with the benefit of killing inflation) a more realistic view is that the Reagan policies caused a substantial temporary increase in unemployment that was superimposed on a trend of gradually reducing unemployment.  This was particularly unimpressive given that he borrowed more money than all the previous Presidents combined and changed the US from the world's largest creditor nation to the world's biggest debtor nation.  One would think that all that borrowing would have resulted in more jobs, at least transiently.  Instead most of it enriched the rich and military contractors.  Under Bill Clinton, by contrast, the unemployment rate started at about 7% and steadily decreased to 4%.

          I'm truly sorry Man's dominion Has broken Nature's social union--Robert Burns

          by Eric Blair on Thu Jan 03, 2013 at 11:12:00 AM PST

          [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site