I certainly understand where you are coming from.
Economics is a dastardly profession. My point was simply that the economics as practiced by Obama produced MASSIVELY different and worse results than that practiced by Reagan.
Reagan literally changed the world. I lived it. I lived in the 70s. I saw how the US was on it’s butt economically. Interest rates in double digits, inflation in double digits and worse. We were doing worse than the Soviets according to my economics professors at MIT. We had been underperforming Europe for decade.
After Reagan the US succeeded and I don’t need to go into a lot of economics statistics because it’s incredibly obvious that the US jerked into a massive huge upswing. Our growth rate was over 7 % in some quarters! We were acting like a third world country in growth. It was so successful a time that the US dominated all the world and everyone converted to Reaganomics even if they wouldn’t say so publicly. Another proof point that is stunning as I said before was Ireland. Ireland a country used to feeling like the poor duckling, always the poorest country in the EU they were always crying over spilt milk. In 20 years by employing Reagan tax cuts Ireland became the RICHEST country in Europe. Talk about transformation. I don’t think the Irish ever could get over the fact they always thought of themselves as the poor country. Suddenly they were wealthy!
I will explain the Reagan revolution to you very simply and why Obama’s economics failed so miserably. This is simple enough I believe anybody can understand how economics works.
Reagan thought that if he gave money by lowering tax rates people would spend the money on real things. In other words they would buy stuff that was useful stuff. This would create jobs. However, Obama and liberals believe this too. They think that if the government spends money it is equivalent to giving the money to people by lowering taxes. Thus there is no need to reduce taxes because we can spend the money instead.
The problem is that the way government spends money is fundamentally different than what people spend money on. Government will build a road or something. They hire some people and for a short time it appears that the 2 are equivalent. However, after the road is finished the people are laid off. Suddenly the stimulus is gone and all the people who built the road find the skills they got building the road didn’t help them get another road job. The road itself may or may not have been a good investment. Maybe the road gets used maybe not. The government didn’t build the road based on strong economic need but because they wanted to employ people to boost the economy. We don’t know if the road will ever pay off.
In the Reagan tax cut the jobs people gained from the spending by real people was on things like cell phones or housing improvements or some new car. These jobs don’t go away because the cell phone companies that sold their phones continue to sell phones and grow. There are a lot of jobs in this and these other businesses that are REAL jobs, jobs that will last you decades of wealth building. Jobs that serve a function that people want. These jobs are jobs that produce more wealth for the cell phone company which makes better cell phones and the world gets better.
With the road situation the road may be used or not. The people are out of a job. and have no improved marketable skill.
In the beginning both ways of stimulating the economy seemed the same and economists being smart people do all kinds of gymnastics to show that stimulus either way produces all kinds of results but the fact is that the Reagan way worked and the Obama / democrat way didn’t.
Your issue of debt is certainly a concern. Over-reliance on monetary concerns is a problem. Surely debt is not good but while debt climbs sometimes wealth climbs as well. The question is does debt climb faster than wealth.
The biggest error of Obama and I can’t fault him because he just did what his liberal economics masters told him to do. They constructed the monetary policy that drove the abysmal results of Obama. The overreliance on monetary policy may have prevented a collapse of the economy but it didn’t set us on to a good path. Simply manufacturing money is NOT the same thing as growing business and good jobs for people. Obama did exactly what his liberal economists told him to do and it was a total failure.
After 8 years of democratic financial jurisprudence as you point out our debt had risen $10 trillion. The worst part of that is that the economy grew so slowly that we really LOST $10 trillion. In the Reagan years the US economy became massively more wealthy and this compensated for higher debt (I admit not in the early years). At least we could say we were more in debt but we were also worth a lot more.
The obama years are in. We now know he created about 2% more full-time jobs and LOT more part time jobs and temp jobs. A lot more insecurity for the american working class, a lot of more poverty for the poorest class including blacks. The male death rate climbed. People were so anxious they are taking opioids. The middle class wealth dropped 40% drastically increase the insecurity of the middle class. It was about the worst performance and ominous for the future. The US was being turned into a 3rd world country with a hollowing of the middle class we would soon be a nation of serfs and elites and no middle. The elites didn’t care. They didn’t see any problem with the loss of the middle class. These were the deplorables anyway.
It would be awesome if we could grow the economy without taking on debt. It would be awesome to stop having deficits but any economist will say (including me) that going to zero deficit will crush the economy and send us in a spiral of really bitter economics. We could choose a path somewhere between and maybe in the end that is better.
Obama’s problem like Hillary’s is simple. They actually could care less about economics. Hillary professed no interest in the subject and planned to turn it over to her rapist husband. Obama spent the last days of his presidency giving 500 million to poor countries to implement global warming mitigation NOT helping middle class voters get jobs. He could care less about the jobless black or white. He left it all to the “experts” his democratic economics professors who knew all and left us on a dark road to poverty. Obama wanted to foment racial warfare and “activism” you know yell about the injustice of it all. Demonstrate. Resist the man. Throw bombs. Yell and scream. That’s what Obama really thinks we should be doing. COmplaining about the situation to the white leaders who obviously were oppressing everyone else. Economics be damned. Those deplorables just need to cough up more of their wealth. And to accomplish this what he needs is billionaire donors like Soros and Frankenberg and such. That’s the solution.
Trump is a business man and he can’t help it. He goes in and he sees waste and he understands fundamentally that a government cannot provide benefits to its people without a strong private sector. The private sector makes the things we need and it produces the wealth and taxes that enables government to exist. Government cannot produce wealth because by definition government doesn’t produce anything. They consume and redistribute. They can only consume and redistribute what the private economy makes so it is crucial to grow the private economy.
Obama hates the private economy and business. He wants to kill them. How can that work? Really? I’m sure you agree. He was destined to fail.
Trump can’t help making things cheaper. The first thing he runs into is his presidential jet and he sees the thing is ridiculously expensive. He spends time to cut it. He can’t help it. He chops a billion here a billion there and pretty soon you are talking some real money. He is chopping maybe $10 billion in wasted climate spending. Money completely wasted on bogus science. Lots of science today is irreproducible. We need to look again if we are getting our money’s worth of everything. We need someone to come in and clean ship. He has put in powerful bureaucrats from the business world. Billionaires who have run giant bureaucracies themselves. They can actually mange and slash these things. At least one can hope.
Trump understands also that free trade a concept I fully endorse and understand is being abused. China doesn’t buy American. They steal. About $50 billion a year. I’ve seen it. I’ve been to China trying to sell. They won’t buy anything unless they absolutely are forced to and believe me as soon as they don’t have to they will stop. That’s what Apple and some other gullible american elite companies don’t understand. The Chinese only sell to us and use tactics that are manifestly unfair. They will crush our companies if we let them. They will use the entire power of the Chinese federal government to crush every US corporation eventually. I don’t say this because I hate Chinese or anything. I say it because it’s true and because it’s simply the Chinese don’t understand that the road they are on is unsustainable and will create war and instability. We need to teach the Chinese how to do capitalist economics so it works for everyone. This is a huge issue Trump needs to solve or huge problems are ahead. I don’t think the Chinese want war. I think that if we work with them they will understand this is about fairness and long term stability for them and us.
I could go on and on but Trump’s instincts are good. The problem is that he doesn’t sugar coat them like Reagan. He says things and does things that piss some people off. He’s not a politician but in another sense he is. There may have been no other way to get what the United States needed than someone like Trump who would challenge the democrats on every level. He was willing to do what Romney and Bush weren’t and take them on every level. He put their identity politics crap in the hopper and chewed it up. He’s got them reeling and he keeps them reeling. He gets stuff done, he never gives up and the democrats always give up. He won’t stop. He’ll change tacts. He will change message but he won’t give up. The democrats will.