Bill Lawson compares the administrations of Reagan and Obama while ridiculing Paul Krugman, Nobel Prize winner, professor of economics at Princeton, author of 20 books and 200 articles in scholarly journals. What arrogance that Lawson claims to know more than this widely acclaimed economist.
Reagan’s recession was caused by runaway inflation that the Fed ended with higher interest rates. The Fed restored the 1980s economy, not Reagan. Donald Duck could have been president and the result would have been the same.
With a small national debt, that he later quadrupled, Reagan was able to push through an across-the-board 23 percent cut in income tax rates with the cooperation of a Democratic Congress.
Obama had to deal with a Republican House that did not care what happened to our economy as long as members could hurt him. (“We will ensure he is a one-term president.”)
Bush-Cheney left Obama with a massive deficit and a severely contracting economy. Fourth quarter 2008 showed the economy contracting at nearly 10 percent, 750,000 job losses per month and interest rates at historic lows.
Lawson tries to rewrite history. The recession Reagan faced was a garden variety; Obama faced the worst economy since the Great Depression, also caused by the Republicans.
Michael S. Dana,