A tale of two recoveries
Filed under: American History, economy, Obama Economy, Our Dear Leader, Politics, Taxes
First let us review some history and economic theory. Now you have heard often enough that the recent recession was the “worst since the Great Depression.” This bit of disinformation is repeated by those with a poor grasp or history and/or really don’t care if their information is accurate as long as it furthers their political agenda.
The worst recession “since the Great Depression” was clearly the recession American suffered through in the late 1970s. Double digit unemployment, double digit inflation and double digit interest rates! The prime rate actually hit 21%! So even if you had a job, the cost of living was rising faster and higher than you could possible get a raise and forget about buying a house with interest rates around 20%.
So we have that lie out of the way, let us get to some actual facts. The last recession end way back in mid 2009. That is when economy when from negative GDP growth to positive GDP growth. You may ask what growth? In most of America, there are still far too many empty store fronts as small business are shutting down faster than they are opening. What growth we have had has been anemic at best. GDP growth has not been over 2% in the three and half years since the last recession ended and employment has been over 7.5% and has even hit 10% during that time as well. What you are experiencing is clearly the worst recovery since the Great Depression.
Let’s review, worst recession followed by a roaring recovering in four years. Not the worst recession, worst recovery on record with no signs of getting better. Why such a glaring difference? Well the nice folks at Forbes covered this nicely. Let us review the facts about Reaganomics vs Obamanomics.
Reaganomics had four key points.
1. Cut tax rates to restore incentives for economic growth (just like JFK)
2. Real spending reductions, nearly 5% of the federal budget
3. Anti-inflation monetary policy
4. Deregulation, which saved American consumers an estimated $100 billion per year!
This simple plan resulted in the longest peacetime expansion in American history. The American standard of living increased by close to 20% and the poverty rate declined every year.
Now let’s look at Obama’s economic, and we are being generous here, plan. It is the exact opposite of President Reagan’s plan, which was clearly very successful. In addition to the new Obamacare taxes, he is calling for a sharp increase in the federal tax rate on the Americans who already pay the majority of the federal income tax. In additions, Obama is calling for increases in:
1. The capital gains tax
2. Corporate dividends tax
3. The Medicare tax
4. The death tax
Instead of spending cuts, Obama and the democrat controlled congress opened with nearly a trillion dollars in new federal spending, most of which was borrowed money, further increasing an already high federal debt.
Then we have the double-whammy of an inflationary monetary policy (the Quantative Easing non-stimulus acts) and massive re-regulation in health care, finance, energy and pretty much anything else Obama thinks he can get away with.
Mr. Ferrara sums up the results of the two policies nicely:
As a result, while the Reagan recovery averaged 7.1% economic growth over the first seven quarters, the Obama recovery has produced less than half that at 2.8%, with the last quarter at a dismal 1.8%. After seven quarters of the Reagan recovery, unemployment had fallen 3.3 percentage points from its peak to 7.5%, with only 18% unemployed long-term for 27 weeks or more. After seven quarters of the Obama recovery, unemployment has fallen only 1.3 percentage points from its peak, with a postwar record 45% long-term unemployed.
Previously the average recession since World War II lasted 10 months, with the longest at 16 months. Yet today, 40 months after the last recession started, unemployment is still 8.8%, with America suffering the longest period of unemployment that high since the Great Depression.
This is the Obama Economy. The worst recovery from a recession since the Great Depression. To make it worse, Obama’s policies are likely to cause that record to be broken, rather than produce real, sustainable economic growth.
Monday Book Pick: No Easy Day
Filed under: American History, Monday Book Pick, US Military
No Easy Day by Mark Owen & Kevin Maurer
This is an autobiography of a US Navy SEAL, and member of DEVGRU, who took part in Operation Neptune Spear. That was the mission where Osama bin Laden died of acute lead poisoning, when one of the SEALs shot him in the head. It is a very stright foward book that tells the story of how Mark Owen (not his real name) trained and deployed prior to the mission, as well as the boots on the ground perspective of how the operation took place. It is not a political book, the authors don’t have political axes to grind. They do make an honest assesment of VP Joe Biden though. A good and honest read. Well worth the money and time invested.
Ann Althouse’s great alternate history of Presidents if JFK lived
Filed under: American History, Politics, Science Fiction
The original is here. Great stuff.
In 1964, JFK is reelected, with LBJ as VP. The GOP does not yet do its big shift to conservatism, and its defeated candidate is Nelson Rockefeller (whose VP choice is William Scranton). Barry Goldwater rises up in 1968, and he is successful, defeating LBJ (who has Hubert Humphrey as his VP). Goldwater’s VP is William Miller (as it was, in actual history, in 1964), and Goldwater is an immensely successful President, winning the war in Vietnam, leaving civil rights issues to the states (and in the process preserving federalism values, to be used to excellent effect in succeeding years), and foreseeing and avoiding the problems of dependency on imported oil. Goldwater is reelected in 1972, defeating Hubert Humphrey (who has Scoop Jackson as his VP).
In 1976, Bobby Kennedy is the Democratic nominee (with Walter Mondale as VP), and he wins, defeating William Miller (who has Bob Dole as his VP). Bobby gets health-care reform, called “Bobbycare.” But Bobbycare goes too far, and RFK goes down in 1980, crushed by Ronald Reagan (whose VP is George H.W. Bush). Reagan is reelected in 1984, defeating Walter Mondale (who has Geraldine Ferraro as his VP).
In 1988, it’s Michael Dukakis and Lloyd Bentsen against George H.W. Bush and Jack Kemp, and — no big surprise — Bush and Kemp win. But they’re in for only one term. Blamed for the economy — stupid! — they lose, in 1992, to Bill Clinton and Al Gore. Clinton and Gore are reelected in 1992 (facing Jack Kemp and his VP choice Tommy Thompson).
In 2000, it’s Gore (with Lieberman) against George W. Bush (with Cheney), and Bush wins. In 2004, John Kerry (with John Edwards) lose to Bush and Cheney. In 2008, it’s John Edwards against Mitt Romney, and Mitt Romney wins. (We won’t worry about their VPs right now.) Challenged by Hillary Clinton, Mitt Romney is reelected in 2012. And we don’t get our first woman President. But the Romney terms come to a close. Now it’s 2012, and Hillary goes for it again, only to be defeated in the primaries by another “first,” the possible first black President, this fascinating upstart with the funny name Barack Hussein Obama. (But America, having avoided dependence on foreign oil, thanks to Barry Goldwater, never got dragged into crazy interactions with those Middle East countries, and there was never a 9/11 terrorist attack or an Iraq war, or any of those things that would make “Hussein” seem truly odd.)
Speaking of firsts, there’s a first coming up on the GOP side, a woman! It’s the hyper-competent and stunningly beautiful Sarah Palin. With 8 years as Governor of Alaska, her executive experience and record of accomplishment wow America. (She was term-limited in 2014, and spent the next 2 years running for President.) And so in 2016, we have our big first, the first woman President: Sarah Palin!
Quote of the Day
Filed under: American History, Barking Moonbats, History, Politics, Space Tech, Technology
“Is it gonna go to where the astronauts planted the flag?”
Texas democrat and member of the US House of Representatives, Sheila Jackson Lee while being shown video of the Curiosity rover on Mars during a visit to NASA’s Johnson Space Center in Houston, Texas.
I was going to post this without comment, but frag it, statements that stupid deserve comment.
The democrat from Texas, representing the district the Johnson Space Center is in, is so bloody ignorant of not so distant American history, that she doesn’t know that in 1969, Americans walked on Earth’s moon, not Mars.
This is beyond the level of ignorance so called “tolerant” liberals accuse Republicans in their fantasies. If anyone with a “R” behind their name, every news talking head would be leading their broadcast and the propagandists at NBC “News” would special graphic and running it constantly.
Since the Congressperson in question is a far left extremist liberal democrat, you can count on hearing crickets chirping before CNN runs this.
Independence Day Quote of the Day
“Races didn’t bother the Americans. They were something a lot better than any race. They were a People. They were the first self-constituted, self-declared, self-created People in the history of the world.”
The Glorious Fourth
Bill Whittle takes a look at American History.
June 11, 1964, Senate democrats filibustered the Civil Rights Acts
Filed under: American History, Congress, History, Politics
An important historical fact to remember, congressional democrats opposed the Civil Rights Act.
Senate democrats filibustered the Civil Rights act for 57 working days, which included a speech by democrat Senator Robert Byrd against the bill that lasted fourteen straight hours. Byrd’s opposition was not surprising, since the late Senator got his start in politics as a recruiter for the Ku Klux Klan.
The filibuster was finally ended when the Senate Minority Leader, Senator Everett McKinley Dirksen, a Republican from Illinois, pushed for a closure vote in a speech that called for the democrats to end their filibuster and accept racial equality.
The Civil Rights Act was finally voted on, and passed with a majority of Republicans and minority of democrats voting for it.
President Reagan D-Day speech at Normandy
In honor of D-Day, which occurred on this day in 1944, here is a speech given by President Ronald Reagan at Normandy.
Update: The official US Army D-Day page.
Originally posted on June 6, 2009
Quote of the Day
“A wise and frugal government, which shall restrain men from injuring one another, which shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned. This is the sum of good government.”
Thomas Jefferson, third President of the United States of America
Quote of the Day
Filed under: American History, economy, History, Obama Economy, Our Dear Leader, Politics
“According to the worst President in American history, “you’re on your own” economics, which apparently extended from the founding of the country until the day Barack Obama took office, didn’t work. Sure, it produced the most technologically advanced nation on the planet, the world’s largest economy, and made us into a super power, but that’s “madness” compared to Obamanomics, which cost us our AAA credit rating, has produced the longest streak of above 8% unemployment since the Great Depression, and is on track to produce 13 trillion dollars of debt over the next 10 years.
Listening to Barack Obama lecture ANYONE else on economics is like getting a lecture from Jimmy Carter on the proper way to execute a hostage rescue.”