Why don't people realize both Reaganomics and Obamanomics are both garbage economic theories?
Instead of following the economic policies of all of his predecessors, which virtually remained unchanged, Reagan decided to try something new. 1981 Reagan signed legislation that would drastically reduce taxes for the wealthy and corporations. Following the tax cut, the deficit soared from 2.5 percent of GDP to over 6 percent, alarming financial markets, sending interest rates sky high, and culminating in the worst recession since the 1930's. He would not rescind the income tax cut, but other taxes were acceptable. In 1982, taxes were raised on gasoline and cigarettes, but the deficit hardly budged. In 1983, the president signed the biggest tax rise on payrolls, promising to create a surplus in the Social Security system, while knowing all along that the new revenue would be used to finance the deficit. Reagan dipped into Social Security funds extensively and now that system is nearly bankrupt. On the other extreme, there is Obama, who thinks he can tax everyone sky high and simultaneously spend hundreds of billions of dollars to somehow bring this country back intro prosperity. He wants the money to flow from the wealthy to the poor, while poor people do not spend money, so that money will not be going into investing in the economy. His theory is just as bad as Reagan's. Why can't Obama try using Dwight D. Eisenhower's economic philosophy (rich are taxed higher than most other people, but at an amount that they can easily afford to pay and does not make them feel like they are being punished for being wealthy), for example, or virtually most of his predecessor's besides Reagan, Bush 41, Clinton, and Bush 43? The four clowns we had before Obama all had pretty poor economic philosophies, so that is why I said they should be excluded. Well, I am not a Marxist, and not anywhere close (I am a moderate Republican). I think that being a Republican doesn't mean you have to support supply-side economics.
Asked By: - 8/22/2010
Best Answer - Chosen by Asker
EVERY president starting with Carter has failed utterly to address the root cause of our economic decline... More
Answered By: gws35 - 8/22/2010
Additional Answers (12)
Reagan had a policy. supply side economics, trickle down economics, no tariffs( let our workers compete with 3rd world workers making pennies) and tax cuts for the rich it was well defined Obama doesnt seem to have a plan
Answered By: Dave87gn - 8/22/2010
Some of us do, we're called Marxist Lol
Answered By: Ryan - 8/22/2010
In your idyllic Eisenhower Administration, the Rich were taxed much higher than they currently are, and higher still than anything Obama would think of proposing... More
Answered By: Jason K - 8/22/2010
Reagan's policies set the stage for 25 years of wonderful and almost uninterrupted economic prosperity in America. Obama's policies are destroying America. Let's not confuse them or equate them.
Answered By: Shovel Ready - 8/22/2010
but... but... if you dont tax at those rates, you cant spend at those rates. i suggest you shrug off the old and start anew, markets may be similiar but are distinctly different from those of several decades ago.
Answered By: I AM A TROLLey -LOL- - 8/22/2010
I would remind you that under Eisenhower the high end individual tax rate was 90%. In fact during the most prosperous years of the US, 1950 to around 1976, the high end tax rate was over 90% up to 1964 when it lowered to 71%. Then in 1981 it was lowered to 39% under Reagan. Obama is looking at raising it back to 39... More
Answered By: ndmagicman - 8/22/2010
Reagan's policies were founded in the understanding that people respond to incentives, Obama's policies are founded in envy and jealousy.
Answered By: Omega57 - 8/22/2010
You are materially, FACTUALLY wrong... More
Answered By: Peace through blinding force - 8/22/2010
THE BEST ECONOMIC SYSTEM IS STATE CAPITALISM LEARN FROM THE CHINESE
Answered By: Southern Er - 8/22/2010
You don't seem to have a very good grasp of events during the Reagan years... More
Answered By: Mjǫllnir - 8/22/2010
Although every Economic Theory must incorporate some sort of "trickle down" effect, there is a very big difference between the Reagan and the Obama policies... More
Answered By: YB Logical - 8/22/2010
Both ideas are Keynesian in nature, that Government controls the economics of the nation.this is false... More
Answered By: Provider Class Member - 8/22/2010
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