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Barrack Obama is No Ronald Reagan

A week after Ronald Reagan’s 100th birthday celebration, comparisons between presidents Obama and Reagan continue.

The conversation began when Obama praised Reagan in a USA Today op-ed. He commended Reagan’s leadership, his confidence in and optimism for America, and his great ability to communicate his vision for the country. Reaganites like myself appreciate these sentiments.

But so far, the differences between the two presidents are still huge. Begin with the economy. Reagan and Obama both inherited deep and brutal recessions. But the first six recovery quarters look completely different for each president.
So far, real GDP has averaged only 3 percent annually for Obama. Employment as defined by nonfarm payrolls has increased by a paltry 121,000.

On the other hand, going back to Reagan’s first six recovery quarters, real GDP averaged 7.7 percent annually while nonfarm payrolls rose by 5.3 million.
No two situations are exactly alike. Reagan inherited massive double-digit inflation with 20 percent interest rates. Obama was left with a colossal financial meltdown. But Reagan’s economic vision put private-sector free-enterprise at the center. Obama has chosen a massive expansion of government power.

These are huge differences. One succeeded, while thus far the other has not. While Obama’s first act was an $800 billion government-spending package, one of Reagan’s first decisions was a near $50 billion domestic-spending cut ($100 billion constant dollars today). Obama went for a nationalized health-care plan, energy cap-and-tax-and-trade, and pro-union card check. Reagan ended wage and price controls, deregulated all energy prices, terminated the Synthetic Fuels Corp., and fired the striking air-traffic controllers. Big differences.
Drawing from the work of Arthur Laffer and Robert Mundell, Reagan saw the economic-growth benefits of limited government, lower tax rates, and a dollar as good as gold. Gold prices plunged as Reagan and Paul Volcker worked to vanquish inflation. Ever-soaring inflation was the cruelest tax hike of all. But in the Reagan years the inflation rate dropped from near 13 percent to as low as 2 percent — a huge disinflation tax cut. Accompanied by lower marginal tax rates, the Reagan policies sparked a powerful recovery in business and jobs.

Reagan slashed tax rates across-the-board for individuals, investors, and businesses. At the margin, his reforms lowered the top personal rate from 70 percent to 28 percent. And he left a simple two-bracket tax code that cut thousands of pages of IRS rules and regulations.

And while the top individual tax rate was slashed under Reagan, individual income-tax revenues increased from roughly $300 billion to $450 billion. In other words, the Laffer curve worked. With surging economic growth, the incentives from lower tax rates actually raised tax revenues.
Mr. Obama, on the other hand, campaigned to raise tax rates on successful earners and investors. Along with the dozens of taxes legislated into Obamacare, these are all job stoppers.
Only after the 2010 election landslide did Mr. Obama finally agree to extend the 2003 Bush tax rates for a couple of years. But, he continues his pledge to hike those taxes again when the deal expires in 2012.

From his experience as a movie actor facing a 90 percent tax rate, Reagan always encouraged success. Everyone’s success. And he came to believe that if it pays more after tax to work and invest, then people will do so. Of course, Reagan increased the defense budget to defeat the Soviets. But during the seven fat years of growth — to use the late Robert Bartley’s term — overall federal spending dropped from 23 percent of GDP to 21 percent. (Obama has taken the size of government to 25 percent of GDP.)

As for the budget deficit, Reagan left it around 3 percent of GDP — almost exactly where he inherited it.
Overall, Reagan’s policies created 21 million new jobs as real GDP averaged 3.5 percent annually during the seven fat years of recovery. The unemployment rate dropped to 5.3 percent from 10.7 percent. The stock market rose nearly 200 percent. And household net worth expanded by $8 trillion.
Quintessentially, Mr. Reagan was a private-sector, free-enterprise man. His policies of low tax rates, lighter regulation, domestic-spending limits, and low inflation rescued the country from the malaise of stagflation. Meanwhile, his military build-up, tough diplomacy, and “evil empire” battle cry defeated Soviet communism. Reagan was an optimist, but a tough-minded one. He believed in American exceptionalism. He also fervently believed in freedom.

Since last November’s Tea Party election, Obama has read about Reagan, talked about Reagan, and very cautiously moved economic policy in the direction of Reagan. I am open-minded. Let’s hope the current president stays on his new Reagan path.

But let’s never forget: Ronald Reagan saved the country 30 years ago. He also saved our future. Hopefully Mr. Obama will learn from that.


Click to view image: 'bb44156e71fd-timeobamareagane1296393903932.jpg'

Added: Feb-13-2011 Occurred On: Feb-13-2011
By: yorba
In:
News
Tags: Ronald Reagan, Obama Comparisons, Arthur Laffer, Paul Vockel, Inflation, Economy
Views: 7672 | Comments: 75 | Votes: 3 | Favorites: 3 | Shared: 0 | Updates: 0 | Times used in channels: 1
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  • That stupid comparison between Obama and Reagan was made simultaneously by NBC, MSNBC, and Time magazine. It could only have come from the White House itself.

    Posted Feb-13-2011 By 

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  • obama would not make a pimple on Reagan arse.

    Posted Feb-13-2011 By 

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    • Please don't degrade Reagan's ass

      Posted Feb-13-2011 By 

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    • Pleas quit sucking reagan's ass he 's dead .
      Ronnie was a criminal period . You pathetic neo-cons worship him for all the wrong reasons . Obama will be and has already been a much better president than ronnie ever was .

      Posted Feb-13-2011 By 

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    • In an unrelated but totally parallel instance, Justin Beiber is now claiming to be the Kurt Cobain of his generation. Can we do something to raise money to buy him an 870?

      Posted Feb-14-2011 By 

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  • Hell he aint even American. Theres absolutely no comparison to Ronnie.

    He is however a lot like Mao Chow Mein.

    Posted Feb-13-2011 By 

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    • Hawai isn't in america?

      Posted Feb-13-2011 By 

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    • DUH, no actually it isnt ya knucklehead. It's 2000 miles west and south of the mainland.

      But in obama's case, I fail to see the pertinence of your query.

      Posted Feb-13-2011 By 

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    • Ok, Mr. Technical, Hawai isn't in the United States? OR, do you think he is from Kenya on a mission to turn us muslim? Birther? I'm ok with that, we all have our opinions, but it does lump you right in with the "George Bush blew up the World Trade Center" crowd.

      Posted Feb-13-2011 By 

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    • You have simply made the mistake of thinking I could give a fuk what "lump" you put me in. I give about the same credibility to what you socialist loons say and believe as I do islamist.

      And no, obama isnt from the United States or he would have put this question to rest a long time ago. But instead he chooses to keep his education and birth records a (whispering) secret. So lets give this poor horse a rest already.

      Posted Feb-13-2011 By 

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    • Okay you are a birther, lmfao, done talking with you.

      Posted Feb-13-2011 By 

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  • They try to compare Obama to past great presidents because NO ONE REALLY KNOWS WHO THE F OBAMA IS! HE'S DONE NOTHING....YET PRETENDS TO BE EVERYTHING!!! YOU FOOLS WHO VOTED FOR HIM are just that....FOOLS!

    Posted Feb-13-2011 By 

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    • Reagan a past "great" president? LOL, the guy was a puppet, just like Bush Jr. Clueless fucks who did whatever was told to them by smarted adivors that surrounded them.

      There is a great scene in Micheal Moore's most recent documentary where a Wall Street guy is telling Reagan to hurry up in reading his speech, as if he was like a little bitch.

      Posted Feb-13-2011 By 

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  • This is a painful article for liberals. The silly accusations that Reagan was some sort of "puppet" is absurd and ignorant. He stared down a recession, and he won. He stared down the striking air traffic controllers, and he won. He stared down the Soviet Union, in its entirety, and he won. And he did it with class and dignity. This is the worst possible scenario for the snickering, juvenile, twisted in the head progressive movement of today.

    This article is dead on. Stop fucki More..

    Posted Feb-13-2011 By 

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    • Hey yorba, next time you post an article on Liveleak, provide a link to the original author. That's what people typicallty do here.

      We don't know who the author is, the source that published it or anything. People like to know this shit. This neocon propaganda piece looks like it came straight from The Weekly Standard or somthing.

      Posted Feb-14-2011 By 

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  • My gosh, the metaphor is perfect!
    Most notable achievement of Ronald Reagan: Ending the cold war.
    Most notable achievement of Barack Obama: CASH FOR CLUNKERS.

    Posted Feb-13-2011 By 

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  • more like Ronald McDonald

    Posted Feb-13-2011 By 

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  • Obama isn't fit to lick the dog shit from the bottom of Reagan's shoe.

    Posted Feb-13-2011 By 

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  • REAGAN FORGOT MORE ABOUT BEING AN AMERICAN THAN BARRY WILL EVER KNOW

    Posted Feb-13-2011 By 

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    • Barry is in a desperate search to find an identity. Even he has no clue who or what he is. He wants to be everything to everyone and has no understanding the public can see right through his deceptions.

      Barry Hussein Obama will GO DOWN in history as the single worst POTUS ever.

      Posted Feb-14-2011 By 

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    • You are right. Nevermind what anyone thinks about Reagan, it just looks lame and silly for the big O to parade around in cowboy hats claiming to be like Reagan. It is embarrassing. What handler thought this would be a good idea? Michelle? Kinda like Kerry asking "is this where I get me a huntin' license?" or maybe Dukakis sticking his fool head out of a tank. These people have no pride and no shame whatsoever. Pitiful.

      Posted Feb-14-2011 By 

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  • Lets face facts. Obama is no Obama either. He definitely doesn't do what it said on the tin.

    Posted Feb-13-2011 By 

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  • Comment of user 'ReplicantDeckard' has been deleted by author (after account deletion)!
  • Obama loves Lenin more than Reagan.

    Posted Feb-13-2011 By 

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  • oh, but the media is sure playing the Reagan card huh...all you freaking idiot progressives shoud at least get a CLUE. Damn, your ignorance on these matters is pathetic.

    Reagan was patriotic and BELIEVED in THIS country. he brought a 30 year rise in the middle class did'nt he? What does Obama believe in....wake the fooook up and smell those roses!!

    Reagan had BALLS! Something this entire country is lacking right now. PC BE DAMNED!!!!!!!

    Posted Feb-13-2011 By 

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    • Comment of user 'Zardoz003' has been deleted by author (after account deletion)!
  • No comparison, Obama does not have Alzheimer's.

    Posted Feb-14-2011 By 

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  • Jew York Times quotes?

    Posted Feb-14-2011 By 

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  • President Reagan was an actor and a puppet.. so stop acting stupid like you dont know.
    look up Iran/Contra Scandal, and about 8 other american $$$ induced wars VP Bush Sr and his CIA pals concocted under the protection of your hero puppet President Reagan. the beginning of your sick karmic downfall.

    Posted Feb-14-2011 By 

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  • barack obama is no barack obama - - - he is barry soetoro ! ! !

    Posted Feb-15-2011 By 

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  • Obama is more like Paul Martin...

    Posted Feb-13-2011 By 

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  • Reagan raised the national debt from $997 billion to $2.85 trillion. I can see the similarities.

    Posted Feb-13-2011 By 

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  • what we do know is that Nancy Reagan was Hollywood's blowjob queen. No man or woman suck a cock better than she did. What do we know about Michele Obama's abilities? Does she even take up her super-sized ass? Until these issues are settled we will never really know who was the better President.

    Posted Feb-13-2011 By 

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  • "Barrack Obama is No Ronald Reagan", and the entire world lets out a sigh of complete relief.

    Posted Feb-13-2011 By 

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  • Did anyone see the time's article? Or are you all just blinded by GOD.

    Posted Feb-13-2011 By 

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  • reagan was a mass murderer, which is most likely why so many hardcore conservatives love him so much

    Posted Feb-13-2011 By 

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  • The truth is we'll never know how "Ronnie" would have handled the complete boondoggle Bush handed to President Obama.

    Posted Feb-13-2011 By 

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  • Obama is more conservative then Reagan. If Reagan was alive today, most teabaggers would be calling him a RINO. That's how far the right-wing has travelled over the last 30 years. They're in "new world order" fringe territory now. Just ask Glenn Beck.

    Reagan was a disaster for America and the middle class. Workers took it up the ass after Reagan was done with them. He broke the back of the labor movement in America and since then they have seen their wages stagnat, benefits tr More..

    Posted Feb-13-2011 By 

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    • You have no clue. Clinton brought in NAFTA. Reagan deregulated several industries that brought huge economic growth and lower costs/prices. Trucking and Airlines for example. The debt did rise because the Democrats in control of congress broke the deal they had with Reagan. The standard of living for the middle class, the poor and minorities increased greatly during his 8 years. Conservatives love him because he believed in limited government. He rightly believed the government prevents e More..

      Posted Feb-13-2011 By 

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    • Typical Far Left rhetoric...your party has you ALL brainwashed nonetheless, Obama will be a one term president and go down as this country's WORST ever president.

      Posted Feb-13-2011 By 

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    • Who you got to beat him?

      Posted Feb-13-2011 By 

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    • Libs Re-writing history, once again.

      Posted Feb-13-2011 By 

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    • Even worse then W.? The guy left office with an approval rating of 22%, the lowest ever recorded since polls were taken.

      Over 200 presidential scholars in America rated W. near the bottom of all American presidents ever.

      Posted Feb-13-2011 By 

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