Yet conservatives continue to claim Obama is ruining the economy.
I'm sure that will come to a screeching halt when the loonies in the GOP shut down the government at the end of the month.
Presidents FDR and Reagan would disagree with you. They both used economic stimulus to get the economy out of recession.
- Scientist James Lovelock
We've been through numerous times. Facts show that it did. Every economic indicator had improved at the end of his first term.
This continued except for a mini-recession in the late 30's. The economic stimulus of the spending to fight WW II was the end of Great Depression and led the US back to prosperity.
Reagan did lift price controls on oil and gas. While that helped the economic recovery, his almost tripling of the national debt (incurring record deficits not seen in the post WW II era) was the major factor in recovery.
It's really pretty simple econ. One person's spending is another person's revenue, and one person's revenue is another person's spending.
Usually they're municipal bonds. Road projects, school projects, the Moonbeam express..
All are temporary jobs lasting about a year. Not enough job security to commit to buying a house, or even a car. Maybe pay off the credit cards, or catch up on house payments, but not enough to replace emptied savings accounts or sold stocks.
That coupled with the penchant for most companies to hire part time (over 50% of new jobs) to do an end run around Obamacare. Doesn't do a whole hell of a lot for our economy except for Team Obama to claim they are lowering unemployment numbers and working hard to improve things.
Now all that money is sitting in banks and going into wall street.That is true. Plus, the Fed announced they would not start their taper yet, but hinted earlier that they would do it by the end of the year. Nothing is written in stone, so they may not taper at all for a while.
Also, Kramer mentioned the RE bubble. This could be another bubble, but with equities. Gold has been also following suit because of the Federal Reserve actions.
I agree with Wabash about the way the Fed has responded. During the Depression they tightened things up and things got worse. Bernanke didn't do that, but IMO, they should start tapering. But that would be bad for equities, but it would be better than another crash of maybe 2K or 3K points on the Dow??? I think Wall Street had already built in the taper price, but when no taper was announced, it bounced back.
How did he get away with this when he had a spend-happy democratic house and senate under his two terms?Fordama wrote: Reagan borrowed and spent like crazy.
- Scientist James Lovelock
Yet another conservative myth. Albeit this one is only a partial myth. While the Dems enjoyed a majority in the House during Reagan's administration, the GOP enjoyed a majority in the Senate for the first six of his eight years.
More importantly, Reagan never used his veto power as president. So his fingerprints are on that deficit knife.