Is the cycle of economy a pure coincidence? Reagan Bust - Bush Sr Bust - Clinton Boom - Bush Jr Bust?

Question

The rust belt exploded under Reagan. The economy was good during his presidency if you were a day trader or outsourcing factory owner. The number of homeless likewise exploded. taxes for the middle and lower middle class increased as tax breaks were created for the wealthy. Any Reagan job growth was in the service sector, as the union manufacturing jobs, which had made America the foremost manufacturer of durable goods on the planet, dried up and disappeared. He wrote the template for the next two GOP presidents. Trickle down theory as a way to "just say no" to growing the middle class majority while fattening the top 2%.

Clinton's watch stood like a beacon cutting through the murk of all these other rotten economy presidents.

We often hear "it's all cyclical." But is it? Isn't the pattern of the coincidence mighty uncanny?

Answer 1

You are absolutely incorrect. Please cite the information you have provided.

First of all, go farther back to the time of Jimmy Carter where, at the end of his presidency, both inflation and unemployment peaked to the highest EVER seen in the history of the U.S.

The Clinton years saw great economic growth - by coincidence. Remember the internet bubble??? Yes, it burst right at the tail end of his presidency (by no fault of his own) and upset the economy for three years.

During the G.W. Bush administration, the U.S. stock market saw the Dow break MULTIPLE records.

Unemployment rate also is currently the lowest that it has been in 30 years at 4.9% (down from 10.9% during the Carter administration.)

Inflation over the last eight years has occurred at the lowest rate in the past 100 years.

August 2007: 1.97%

1970 Average: 5.84%

1974 Average: 11.03%

1981 Average: 10.95%

1992 Average: 3.03%

1996 Average: 2.93%

Real Estate prices are also the lowest they have been in over 50 years taking into account the relative inflation of the economy. - This means that for the first time in a while, young people like myself are able to go out and actually afford a house with low interest rates. (Interest rates for home loans averaged 20% during the carter administration. Currently, they average 7%.)

A higher percentage of employers now more than EVER are paying above minimum wage by an average of about $2.09.

And do you even understand the U.S. Tax system??? Do you realize that those "Fat 2%" you talk about bear almost 50% of the tax burden in the U.S. while the bottom 50% of income-earners bear only about 4% of the tax burden???????

In the real world bud, that fat 2% pays no taxes at all, no matter how much the IRS charges them. That fat 2% owns the U.S. steel companies, oil companies, agricultural markets, retail industries, etc.. Not a dime of the 50% of the taxes collected in the U.S. comes out of their pockets. They pass it on to the consumer..... If the government raises their taxes to punish them, they are only effectively raising the food, gas, toy, computer, etc. prices. This is why Trickle-down economics has PROVEN to work.

And since we are at it..... If you think government regulation is the answer, well think about this:

Total average profit made on a gallon of gas is 4% - this means that the oil companies who pump, ship, refine, distribute, ship again, and market gasoline, make an average of 16 cents per gallon. In my state, the gas tax is $0.20/gallon. The federal gas tax is 18.5 cents/gallon. This means that the government, who does nothing makes, in many cases TWICE the profit off of a gallon of gas that the oil companies earn.

Answer 2

Yeah, the unfair tax system has not helped our economy.  That's a main reason I don't want McCain to win.  He says "Obama would raise taxes."  But, the tax change would would be a tax reform, and not a tax increase.  This would make our economy stronger because rich people do save a lot of money.  Also, they are 3% of the nation compared to the rest.

Answer 3

incorrect, both in Reagan and the present Bush's terms, we had sustained Economic growth. In Clinton's term the growth was an illusion because of the Dot.com craze.I notice you didn't menction Jimmy Carter, why not? His term puts your theory in the trash where it belongs.