January 13, 2011

Latest Pajamas Media Column (‘Reaganomics vs. Obamanomics: It’s Reagan in a Rout’) Is Up

Filed under: Economy,Taxes & Government — Tom @ 8:44 am

It’s here.

It will appear here at BizzyBlog on Saturday morning (link won’t work until then) after the blackout expires.


Make sure to see the column’s key graphic.

The jobs scoreboard through 18 post-recession months (Reagan: October 1982 through March 1984; Obama: July 2009 through December 2010) reads as follows:

  • Total non-farm jobs: Reagan – 4.240 million; Obama – 72,000 (seriously)
  • Private-sector jobs: Reagan – 4.133 million; Obama – 378,000

This is even before considering today’s much larger potential workforce, and it glosses over the National Bureau of Economic Research’s contention that the country was still in a recession during October and November of 1982.

As I wrote yesterday in the pre-column tease about what this should mean to Keynesian clingers: “It’s embarrassing — no, make that humiliating.”

What follows are a couple of preemptive rebuttals.

One commenter yesterday tried to claim that the POR (Pelosi-Obama-Reid) Economy’s recession (he didn’t refer to it that way, but they own the recession, as I have demonstrated time and again during the past 30 months) was worse and/or presented more of a recovery challenge than the early 1980s recession.

Hardly. Reagan faced:

By contrast, under Obama, core inflation remains tame (though Ben Bernanke’s “quantitative easing” is running a huge risk of ruining that), and interest rates are almost at the “free money” level. Businesses and consumers aren’t reacting to these low rates because of pervasive administration-induced uncertainty, regulatory hostility, and, more recently, high oil prices, which are also an administration-induced phenomenon. The poor job growth in the first 18 months after the POR Recession ended, despite a supposedly stimulating debt buildup of more than $3 trillion that as of today is jeopardizing USA’s credit rating, is directly traceable to Obama administration policy choices.

The severity of the housing mess is the other attempted rebuttal. Putting aside that it’s really the Democratic-driven mortgage loan crisis resulting from frauds by design Fannie Mae and Freddie Mac, the whole thing could have worked itself out during the first half of 2009 if the administration had chosen the right policy prescriptions. It didn’t. Because it didn’t, we have a mediocre economic growth and a still-pathetic job market. It’s on them.

No wonder our current president (assuming it’s not a faux-triangulating pose) is reading up on Reagan. Although I suppose there’s always hope that a hardened leftist like Obama can somehow comprehend what made the Gipper so great, especially in this case his economic policies, I’m not optimistic.


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