Obamonomics = Reaganomics: a primer

Essentially the pillars of Reaganomics were as follows:

1. Deduct government spending,
2. Reduce income and capital gains marginal tax rates,
3. Reduce government regulation of the economy,
4. Control the money supply to reduce inflation. ... http://en.wikipedia.org/wiki/Reaganomics



However, in practice, pillar #1 was always sacrificed on Reagan's altar of national security. Does that sound familar? So, how does this stack-up with Obama's first year.

1. Deduct government spending,

In the State of the Union Obama will promote the idea of a discretionary spending freeze.

2. Reduce income and capital gains marginal tax rates,
In this case, Bush had lowered them so much that there is little room to go anywhere. Tax credits and breaks have been a key part of Obama's economic strategy. Initially for a capital gains increase, Obama has since backtracked and has even proposed their temporary elimination for some businesses. http://radioviceonline.com/obama-suggests-elimination-of-capital-gains-congress-doubles-tax-to-35/

3. Reduce government regulation of the economy,

While he called for more regulation during the campaign, nearly 1 year into office there has been little movement on this front. His team has talked a good game ( http://www.nydailynews.com/news/politics/2009/06/18/2009-06-18_star_wars_of_financial_regulation.html ) but once again, what has happened?

4. Control the money supply to reduce inflation.

Well, that will come soon enough. The efforts to keep Bernanke and bring down spending are all part of this.



...But, more importantly Obama is silently pushing what looks a lot like the Ronald Reagan theory of economics, the trickle down theory. Reaganomics. Remember during the campaign he mentioned that he admired the Reagan presidency. His insistence on pushing funds into the banking system, appear to be a “hope” that the banks will loosen up credit to other businesses and will trickle down to the everyday consumer. This sure smells like Reaganomics to me. It didn’t work for the masses of U.S. population then and certainly is not working now. The banks have not loosened up credit and are continuing to fail.

Its obvious there will be fewer jobs. When we look at the auto industry alone we see fewer models being made, which means fewer manufacturing lines, which means less people working directly for the car companies. This in turn means less people working in the smaller companies that manufacture lights, bumpers, seat belts, etcetera. I suppose this would be the reason the president is pushing so hard for some sort of health care reform since he is well aware a recovery will not entail employment (Raw dawg Buffalo postulates a recovery is not possible without employment.) This should signal our sensory perception that this man has no intention of putting people back to work. At least not like it was before this recession/depression. All in all there is still money to be made, but now is the time to dig deep within yourself and pull out the business woman or man trying to get out.... http://ensaynreality.squarespace.com/journal/2009/9/24/mr-obama-are-you-practicing-reaganomics.html

PS: looks like Robert Reich gets 'it' too... http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x7572581

things like expanding unemployment benefits, increasing social spending- which Obama has definitely done in his first year- don't fit with your theory.

1. The cuts are supposed to be targeted in the OPPOSITE way a Republican would target cuts - keeping the 'good' stuff.
2. When Bush's tax cuts expire, he will be raising them for those top earners who've been enjoying a tax break for too long.
3. He's going to be increasing regulation - and this is why the market crashed this week
4. Soon enough?

You compare Obama to Reagan on this flimsy evidence? I laugh in your general direction.

:P

:shrug:

Incredibly sad.

To be angry is easy. But to be angry with the right man at the right time and in the right manner, that is not easy.
Aristotle

...And it’s a betrayal of everything Obama’s supporters thought they were working for. Just like that, Obama has embraced and validated the Republican world-view — and more specifically, he has embraced the policy ideas of the man he defeated in 2008... http://krugman.blogs.nytimes.com/2010/01/26/obama-liquidates-himself/?