To the editor:
With all the pundits proclaiming Obama’s inauguration speech as “Reaganesque,” I thought a comparison was in order.
Reagan came into office amid the worst recession since the Great Depression. He cut government spending by 5 percent across the board or $31 billion — $178 billion in 2011 dollars.
He cut marginal tax rates by 25 percent across the board. Federal income tax revenues doubled in 5 years! Unemployment fell from 12 percent to 6.8 percent; inflation fell from 12.8 percent to 3.2 percent. Interest rates fell form 21.5 percent to 8.6 percent. And the economy grew by 5 percent to 6.6 percent per year.
Obama entered office to the worst recession since 1982.
He increased spending by more than $1 trillion per year. He increased regulation, and gave more than $132 billion to his largest donors and bundlers.
Income tax revenues are stagnant. Unemployment has risen from 7.8 percent to 10.1 percent, only falling due to people leaving the labor force. If the labor force participation rate were the same as it was in January 2009, the unemployment rate would be 10.9 percent today. GDP growth is stagnant at 1.7 percent. The debt has increased by $6 trillion in four years. There are trillion-dollar deficits every year, and promised for the next 10 years.
As we can see, Obama is the anti-Reagan. While Reagan believed in the power of the individual, Obama believes in the power of government.