Posted 5 years ago on Oct. 20, 2012, 10:19 a.m. EST by ThomasKent
This content is user submitted and not an official statement
Romney and other conservative politicos are absolutely off the mark. If we compare Barack Obama’s first term to conservative icon Ronald Reagan’s first term, the Obama administration outperforms Reagan’s on most key economic measures.
Many Americans are too young to remember, or perhaps have forgotten, how frenetic President Reagan’s first term was.
Reagan, like Obama, inherited an economic mess from his predecessor (Carter), and was so beleaguered by the economy that as late as August of 1983, when unemployment stood at 9.5%, he did not believe he would be re-elected. Reagan’s objective was to implement his theory of “Reaganomics,” which was based on stimulating the economy with tax cuts, tax credits and accelerated depreciation (supply-side economics).
Reagan’s primary catalyst to achieve this objective was the passage of the Economic Recovery Tax Act (ERTA) in July of 1981, which introduced phased-in reductions in marginal tax rates that were substantial. ERTA was however a “bridge too far” and failed miserably creating massive budget deficits and weakening the economy, culminating in a severe recession which lasted through 1982.
Luckily Reagan saw his error, and with the passage of TEFRA (Tax Equity and Fiscal Responsibility Act) in September of ‘82, the economy began to get its footing back. TEFRA became the remedy to ERTA. In fact, TEFRA was the largest peacetime tax increase ever signed into law by any of our presidents, and ironically it was a Republican, Ronald Reagan, who signed it into law.
TEFRA kicked off one of the most substantive bull cycles in our financial history: one that endured for more than five years. Reagan deserves credit for backing TEFRA and for its powerful economic result. However, few realize it was Democrat Pete Stark of California who sponsored TEFRA. Had it not been for Reagan’s pragmatism and ability to work across the aisle with Democrats like Stark, Speaker of the House Tip O’Neill, and other members of Congress, TEFRA would not have happened and Reagan would likely have been a one-term president.
Reagan vs Obama
Reagan Worst President Ever http://www.youtube.com/watch?v=-b1ePD_Hi_w