The New American Economy: The Failure of Reaganomics and a New Way ForwardObama could learn from Reagan:
Thanks to the 1981 act, 20 million new jobs were created. Inflation dropped from 13.5% in 1980 to 4.1% by 1988 and unemployment fell from 7.6% to 5.5%.
The net worth of families earning between $20,000 and $50,000 annually grew by 27% at the same time the real gross national product jumped by 26%. The prime interest rate was slashed from 21.5% in January 1981 to 10% in August 1988.
The amount of individual tax revenues rose from $244 billion in 1980 to $446 billion in 1989. Total tax revenues jumped grew by almost 100%, rising by 99.4% during the 1980s producing 92 months of healthy economic growth - the longest period of peacetime in the post WWII period.
Marginal tax rates were cut from a top rate of 70% to 28% while revenues to the U.S. government from all taxes nearly doubled – increasing from roughly $500 billion to an astronomical $1.1 trillion in 1990 - benefiting the Clinton administration.
What can we say about Obama's big government policies, higher taxes and excessive federal government regulations?
As a domestic policy advisor to Ronald Reagan, Bruce Bartlett was one of the originators of Reaganomics, the supply-side economic theory that conservatives have clung to for decades. In The New American Economy, Bartlett goes back to the economic roots that made Impostor a bestseller and abandons the conservative dogma in favor of a policy strongly based on what’s worked in the past. Marshalling compelling history and economics, he explains how economic theories that may be perfectly valid at one moment in time under one set of circumstances tend to lose validity over time because they are misapplied under different circumstances. Bartlett makes a compelling, historically-based case for large tax increases, once anathema to him and his economic allies. In The New American Economy, Bartlett seeks to clarify a compelling and way forward for the American economy.
“Bruce Bartlett, who took the measure of President Bush in his New York Times bestseller, Impostor, has written another highly useful winner: The New American Economy. In this short, tough-minded and often amusing book, he lays out what the Obama Administration is doing to the economy and tells why it will work.”
—Richard Whalen, Senior policy adviser to Ronald Reagan and author of The Founding Father: The Story of Joseph P. Kennedy
Obama. deficit? spending? revenues? do you even know the real numbers?