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American Debt and Who got Us Here!

Prior to 1980 America had never reached a debt of one Trillion dollars, but with the election of  Ronald Reagan we passed that mark and then some.  When Ronald Reagan took office our national debt was a mere 900 billion dollars; give or take a few hundred million dollars. Reagan ushered in the theory called “Reaganomics” which would be later referred to as “Trickle Down Economics” (see; http://www.econlib.org/library/Enc/SupplySideEconomics.html) but by either name it set in motion an approach to monetary policies that would devastate America, but I digress.

Reagan’s presidency ushered in Reaganomics which was an approach that relied on 3 key policy/fiscal foundations; tax cuts which reduced the operational capital of government, deregulation which opened up corporate welfare and corruption, and the role of government to that of noninterference (which is how Republicons referred to government protections from corporations and money’ed interests). America believed that Reaganomics would increase investments by the wealthy in the job market and in turn would stimulate prosperity for all. I refer to this as “trickle on economics” but again I digress. Reagan would  go on to deregulate savings and loans markets; he reduced taxes, increased military spending which directly led the stock market crash in 1987. The start of deregulation of banking and investment markets by Reagan,  and the administrations that would continue this approach, would come to roost later in American history but I will cove that later. This approach would take  the debt from 930 billion to 2.6 trillion in a mere 8 years or $10,058.90 per capita for a population of 258,709,873. I would again note that this had not happened since the start of America until Reagan’s presidency. The Reagan administration increased debt by roughly 2 trillion over an 8 year period which is an increase of 189% of the debt he inherent-ed; just WOW!

Reagan set the table for economic policies that would be adopted in large parts and small from this point forward. Bush Sr. (Reagan’s vice-president) would be elected in 1989 and continue the “trickle down economic policies of Reagan and would fare no better than his predecessor  Bush Sr. would lead the country to an economic collapse and end his one term presidency with the nation in debt for a staggering 4 trillion dollars or $4,064,620,655,521.66 to be exact. This result was in spite of him raising taxes in 1992 in order to curtail the disastrous fiscal policies he continued from Reagan. You would think that Bush would have learned from Reagan’s fiscal FAIL, but Republicons (I refuse to call them “conservatives”; there is nothing conservative about them) did not learn and America was fooled by slogans and propaganda that still exists today; and again I digress. I think that you are starting to see that I digress a lot, but what can I say I have a lot of un-expressed political history in my head. So now we are at the 4 Trillion debt mark. The Bush Sr. administration increased debt by roughly 2 trillion over an 4 year period. Supply Side Economics and Republicon governance quadrupled the national debt to over $4 trillion in twelve years (1980-1992) and they call themselves “conservatives”! Bush Sr’s administration governed over an increase of the U.S. debt of what would equal an 55% increase in just one term; I dare to speculate that with another term he would have nearly equaled Reagan’s debt disaster! That’s right I said it.

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Behind the Unemployment numbers; for real!

Ronald Wilson Reagan was the 40th President of the United States (1981-89)

40th President of the United States (1981-89)

Barack Hussein Obama II: the 44th and current President of the United States

44th and current President of the United States

I have been listening to the pundits talk about the unemployment numbers of Obama and their possible effect on his potential re-election without pointing out that these numbers were made possible after 8 years of Republicon rule. I found it amazing that pundits and Republicons constantly yammer out about the numbers being horrible and that this is why he will not get re-elected.

I think that it is fair to take a look at Obama’s situation and progress in comparison to the president (Ronald Reagan) that is held in high esteem by conservatives (loosely used) everywhere.

Reagan was elected in 1981 and was up for re-election in 1984. President Obama elected in 2009, and is up for re-election this year. Unemployment throughout 1981 may be attributed to the policies of Reagan’s predecessor, Carter. The unemployment throughout 2009 may be attributed to Obama predecessor, Bush. With that fact established, we can look at what they did after they survived their predecessor’s last budget year. I will only include the last 3 years of Obama’s and Reagan’s first term. I neglected to note that federal budgets end every October of the following year, so every president is stuck with the previous president’s budget for their first year (Civics son!).

I hear Republicon pundits argue that Reagan had the highest unemployment rate of any president seeking re-election which was at 7.2%. Pundits insist that unemployment under President Obama exceeds Reagan’s unemployment rate, and puts a damper on a possible second term for Obama. Now let’s take a look at the numbers in order to get a true gauge of what they had to work with and how they performed overall. Now I will admit that these are just raw numbers that do not do true justice to the given situations, but they are something to work with. Read more…

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