Economic Developments / Government Watch / History & Culture / Opinion / Politics

What Reagan Could Teach Biden About the Economy

Reagan

It was a new year. A new president was being sworn in against a backdrop of a fledgling economy on the brink of recession. Americans were suffering from high taxes, high unemployment, high interest rates, and a low national morale. No, I’m not talking about 2021 when President Biden was sworn in, although the comparisons are strikingly similar. I’m talking about 1981 when Ronald Reagan was sworn in. 

Reagan came into office with a mission and a plan to execute it. Bringing America back was President Reagan’s top priority. During his inaugural address, Reagan faced the crisis head on, stating, “This Administration’s objective will be a healthy, vigorous, growing economy that provides equal opportunities for all Americans, with no barriers born of bigotry or discrimination. Putting America back to work means putting all Americans back to work. Ending inflation means freeing all Americans from the terror of runaway living costs. All must share in the productive work of this ’new beginning,’ and all must share in the bounty of a revived economy.”

His economic plan consisted of four pillars: 1) cut federal income tax and the capital gains tax to encourage investment; 2) reduce the growth of government spending to “starve the beast”; 3) cut government regulations to make starting and operating a business easier; and 4) tighten up the money supply in order to reduce inflation. Reagan faced charges of promoting “voodoo economics” or “trickle down economics” but helped push these changes through even despite the criticism he received from Democrats and even those in his own party. Nevertheless, Reagan plowed ahead, trusting his instincts that putting more money in people’s pockets, reducing spending, and getting the government out of the way will enable the free market and boost the economy.

He worked with Congress to produce and push forward the Economic Recovery Tax Act of 1981, which laid the foundation for the “Reagan Recovery.” A few years later, the Tax Reform Act of 1986 brought the lowest individual and corporate income tax rates of any major industrialized country in the world.

President Reagan’s numbers tell the story. According to the Ronald Reagan Presidential Foundation, over eight years of the Reagan Administration: 

  • “20 million new jobs were created”
  • “Inflation dropped from 13.5% in 1980 to 4.1% by 1988”
  • “Unemployment fell from 7.6% to 5.5%”
  • “Net worth of families earning between $20,000 and $50,000 annually grew by 27%”
  • “Real gross national product rose 26%”
  • “The prime interest rate was slashed by more than half, from an unprecedented 21.5% in January 1981 to 10% in August 1988”
  • “Given actual rates of inflation, through 1987, the Reagan tax cuts saved the median-income two-earner American family of four close to $9,000 in taxes from what it would have owed in 1980.”

As they say, the proof is in the pudding. Rather than embrace a proven economic model to reduce inflation, which now sits over 10% versus last year, and cut taxes, President Biden and the DC liberals are still promoting a slimmed down version of, his disastrous “Build Back Better” plan. Biden’s BBB plan would raise taxes, pump taxpayer dollars into growing government bureaucracy (in addition to the trillions already spent), and accelerate inflation. Democrats want these policies enacted even while small businesses are still struggling to recover from the pandemic.

President Biden should abandon this disastrous plan and work with Republicans, as he pledged to do on the campaign trail, to halt this runaway train of spending and debt. Heading into recession territory is no time to raise taxes and overspending is a recipe for disaster as inflation is raging. There’s a few things Reagan could teach Biden on the economy and much of it comes down to this: do the exact opposite of what you are currently doing.

Bob Carlstrom is President of AMAC Action and served in President Reagan’s Office of Management and Budget 


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Smike
21 days ago

And by the way, what does this have to do with the virus??? Another misplaced duplicated article that’s already in another section.

Smike
1 month ago

We need to look, listen and learn. Why did Trump lose? Because too many people will vote for anyone but Trump. That is not going to change. After Jan 6, I will never vote for Trump again. I will not vote for Biden, never had and never will. There are Regans out there, find them…and I will vote for them.

Michael
1 month ago

Reagan couldn’t teach Biden anything! Biden’s head is so far up his fanny that he’s probably deaf…

Wayne
1 month ago

Reagan is gone, so he can’t teach Biden anything. Biden’s brain is gone, so he can’t learn anything.

Patty
1 month ago

Even President Reagan could “not” teach Biden anything…. Biden has spent “FIVE DECADES in DC”, and during that time, he’s become so adept at lying, he even believes his own LIES.

Sam
1 month ago

Reagan could NOT teach Biden anything! Joe is too stupid to learn. Let’s GO Brandon.

Rich
1 month ago

President Reagan could teach Biden: “If more government is the answer, it must have been a really stupid question”. Providing of course Biden could understand.

Mike
1 month ago

DeSantis – Scott in 2024. We’d get Trump like policies without all the drama. Dump Trump, now! He brings to much baggage, to much drama.

DeSantis – Scott will bring back sound economical policies but, more importantly they will begin to reunite our country. We need this more than anything else.

PaulE
1 month ago
Reply to  Mike

DeSantis yes, but Scott no. Don’t be fooled into thinking Scott is an actual fiscal or constitutional conservative, because he dusted off Mitt Romney’s old 2012 outline and put it forth as something new. He’s already back-tracking from parts of that document after receiving pressure from RINO McConnell. This country needs leaders with strength and conviction of principles.

As for Trump’s so-called baggage, the second Trump announces he is not running, the MSM and the Democrats will go after DeSantis with the same fury and determination that they went after Trump. Every Republican is viewed as the second coming of Hitler and a threat to the Democrat’s socialist agenda. If the Democrats don’t treat a Republican candidate like total sh*t, it is because that Republican is a RINO and will just play along with the Democrats after getting elected.

As for reuniting the country, I hate to break it to you but this country has been composed of two diametrically opposed groups for decades. Our public education system as done an outstanding job of cranking out two whole generations of pro-socialist young people, who believe socialism is the path to Utopia. Every time we extend an olive branch to the Democrats, they rip it out of our hands and proceed to beat us with it non-stop and demand we give them more. They are NOT interested in real compromise. They just want our total and complete surrender.

Rik
1 month ago
Reply to  PaulE

I would like to see a ticket of Trump and DeSantis, that way paving the way for DeSantis in 2028!

PaulE
1 month ago
Reply to  Rik

Yes, the country would need at least 12 continuous years of real leadership in the White House to clean up this mess and put the country on much firmer footing going forward.

Patty
1 month ago
Reply to  Mike

I will choose ”drama” over Biden’s disastrously but purposefully orchestrated recession every day of the week.

Letts Brandon
1 month ago
Reply to  Mike

“F” the reuniting, I want the bastards d**d!

Myrna Wade
1 month ago

The Biden ‘s are pushing losses for ordinary people and some of them must be aware enough to know it. If they take an ethics class, they wear ear plugs.

Rik
1 month ago

NO, Biden is too stupid to do anything that will help and don’t forget that his puppeteers wouldn’t let him anyways! After all, Jackass Joe is taking all the blame and doesn’t seem to even know it!

Bob L.
1 month ago

What appears to be a lack of basic kindergarten economics knowledge by the Biden administration is actually a planned and orchestrated take down of not just the economy, but the nation.

Artzy
1 month ago

the Reagan years were very good years.

Rich
1 month ago
Reply to  Artzy

Especially after the Carter years. It makes me think there might be hope.

Mike L
1 month ago
Reply to  Artzy

I liked Reagan, he had enough guts to “fire” FAA air traffic controllers that went on strike.

johnh
1 month ago

WH secretary daily claims Biden is doing everything he can to decrease inflation. He flat out refuses to back off his War on Fossil Fuels & will not even admit it. And then , yesterday his top Executive Order of the day is that all states must allow transgender people to play women sports. What does Joe have against women & how did this become the most important in America yesterday. Where are the rest of Democrats that are letting this happen??

Rich
1 month ago
Reply to  johnh

Where are the women’s groups that support women’s rights?

Kim
1 month ago
Reply to  Rich

Now, there’s an inconvenient truth!

johnh
1 month ago

America could be great again if another Reagan type would step up to the plate & run for President of US. He knew how to unite this country by treating everyone equal.

Ollyoop
1 month ago

Hell, my 16 year old cat has more financial sense in his little claw then Bidung has in his entire body! Unfortunately, about half of the voting citizens in our once great country don’t have a clue either! I really don’t see a change coming from this despotic regime until they look out their gilded windows and see their constituents foraging in the streets for food – of course by then it will be too late to right the ship! But then, that may be exactly their desire!

Wayne
1 month ago
Reply to  Ollyoop

The change won’t come until they look out their windows and see about three million of us with AK47’s (the modern day version of a pitchfork).

Morbious
1 month ago

Reagan teaching Biden is as ludicrous as Paul of Tarsus instructing Tiberious in moral living. Reagan and Biden are from entirely different moral universes. My opinion of Biden was formed during the Clarence Thomas confirmation hearings. Biden was a demon from hell screaming accusations. He still is, but with diminished capacities. Soon he will enter his real home, but not before inflicting as much damage as possible.

tika
1 month ago

bye-den’s incapable of learning. just start there.

Boz
1 month ago
Reply to  tika

Beat me to it. That goes for any Dem. They do NOT possess the ability to learn or for critical thinking.

Bill T
1 month ago

This article is ridiculous, BIDEN has single-handedly (well not quite if you know what I’m saying) took control of a severely wounded country that was in the middle of a medical crisis. Instead of doing everything in his power to help heal and strengthen our country he went ahead and with a poison pen literally destroyed our economy in a few minutes, once our oil and other energy resources were shut down and we all immediately started to pay outrageous prices for gas and diesel fuel it’s started a domino effect with everything, that’s not to mention his pork ridden stimulus packages that we are stuck with right now. The earthquake is right around the corner, get ready, this will be a disaster guaranteed. How dare you even mention a great American president like Ronald Reagan in the same breath as this treasonous trader of our country and all our American citizens.

Bob Ribeiro
1 month ago
Reply to  Bill T

It’s traitor, not “trader”. Otherwise, spot -on.

Philip Seth Hammersley
1 month ago
Reply to  Bob Ribeiro

Well, Joey might be a “trader” as well. He trades friendly policies towards our enemies for big dollars to himself and Hunter!

David Neal
1 month ago
Reply to  Bill T

I’m inclined to believe if yo thought our country was decided because of the previous President you are more the problem than FJB.

Kim
1 month ago

In the first paragraph, Mr. Carlstrom writes, “A new president was being sworn in against a backdrop of a fledgling economy on the brink of recession. Americans were suffering from high taxes, high unemployment, high interest rates, and a low national morale.” While the author is referring to President Reagan’s taking the White House, I wouldn’t draw the same parallel when biden inherited the presidential baton. Instead biden caused these conditions during his short year and a half in office, after being handed a healthy recovering economy from President Trump.

It will take another conservative to oust these liberals and their nonsensical economics before we can get back on track–back to Reaganomics and Trumponomics (The Trump Bump?). One thing we know for sure is that the current administration has no interest in doing the right thing. So we will continue to suffer until this nightmare is over. (I’m planting lots of vegetables out back.)

Robert
1 month ago
Reply to  Kim

Before any conservative can be put in office the stealing of elections must be stopped.

Max
1 month ago

President Reagan had a plan, implemented that plan, and executed that plan, that got this nation out of the idiotic Jimmy Carter fiasco. Pres. Biden came in with a plan to destroy the integrity and economy of the nation for those who are his handlers and is continuing the process with no end in sight. Biden will not become a “Ronald Reagan” to avert the disaster that has been started. This rollercoaster is still heading downward at a great speed that will end in disaster.

PaulE
1 month ago
Reply to  Max

Well said Max. Yet another fantasy article pushing the idea that Biden or his team will realize the error of their ways and do a complete 180 degree turn to adopt the policies of Reagan or Trump. Not going to happen.

President Reagan had a plan to put the country back on track after years of mismanagement by both political parties. He rejected the status quo of the time, that there was nothing that could be done to fix anything other than more of the same old same old tax and spend policies. President Carter was simply the culmination of Washington ineptness that finally drove the country off the road and into a ditch of stagnation, inflation, high unemployment and general malaise.

President Biden came to Washington with his handlers’ plan for Obama’s third term by dismantling all the economic and job gains, as well as American energy independence that President Trump managed to accomplish despite the constant obstruction of Democrats and the RINO wing of the Republican Party in Congress. To date, President “Where am I????” has been succeeding quite well, with a lot of consistent help for the usual 18 or 19 RINOs in Senate, in trashing everything both domestically and on the foreign stage. The end goal being a much weaker and subservient United States. So far the plan is working beautifully, sich is of course NOT good news for the United States or its people.

Both Reagan and Biden came to Washington with a plan for the country. Reagan to build the country back up and create broad-based prosperity and Biden to tear it all down and prepare the United States for its greatly diminished future, if the American people don’t act soon.

Max
1 month ago
Reply to  PaulE

Agree all the way, Paul E.

Robert
1 month ago
Reply to  PaulE

To stop it you will need to separate Obama from the Prism Program. Why else do we have so many Rino’s, even on SCOTUS?

PaulE
1 month ago
Reply to  Robert

Lots and lots of money from China, which buys a whole lot of influence on both sides of the aisle. Remember, the vast majority of people who get into politics are in it for the money and power, because they frankly aren’t able to achieve the kind of lifestyle they want based on their skills and talent in the provate sector. Those that go into politics with the goal of actually helping people are an actual rarity in Washington politics. They exist, but are vastly out-numbered by those who perpetually have their hand out looking to benefit themselves.

Those selling out to the CCP are under the delusion that they are somehow going to treated special or will be somehow exempt from how the CCP always treats those that sold out their own countries for a quick buck. When the CCP ultimately controls us, those people will find out they will be the first ones rounded up and eliminated, as they will be of no further use to China. That is how it has been working in every country China has moved into to.

Ollyoop
1 month ago
Reply to  PaulE

Well, I for one believe that ‘act’ is just a short time away; whether there’s any country left will depend on the extent of corrective action those who have the courage to stand up take. It may either be non-violent (as at the voting booth) or from millions of individually owned arms. Either way, the country is in for a massive re-awakening of the ‘old’ spirit that allowed the USA to become the most desirable country on earth to reside in.

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