CNN: Why Obama can’t match the Reagan recovery

CNN: Why Obama can’t match the Reagan recovery

CNN has an excellent piece up today regarding the differences between what economic pressures President Reagan had to cope with versus President Obama today.  Conservatives like to herald Reagan as a super-president, but comparing his situation at this point in his first term to President Obama’s is comparing apples to oranges. 

From CNN:

Reagan had an advantage over Obama: The recession of the early 1980s was caused by runaway inflation, which the Federal Reserve countered by hiking interest rates. When inflation dropped, the Fed lowered rates and a massive economic boom resulted.

The major causes of the recent recession were a banking crisis and housing bubble that exploded during President George W. Bush’s final months in office.

Another difference: With comparatively small debt loads, Reagan was able to push through a 23% across-the-board cut of individual income tax rates. Obama, meanwhile, entered the presidency with substantial budget deficits and an economy contracting at a rate of 6.7%.

Something that doesn’t come up in the CNN article but I think bears noting: politics in 1984 were not nearly as partisan as they are today.  Back in the 80s “compromise” was not a dirty word.  Politicians were more statesman-like and put country first.

From the beginning of the Obama administration, the GOP in DC has stated their main goal for four years was to make President Obama a one term president.  And they have done all they could to stop any progress in the US knowing that, even at the pain of the lower and middle classes, if they held progress to a minimum – while cashing their $170,000+ annual salaries – they would diminish President Obama’s chances at reelection.

Read the whole article at CNN.com