Gay Patriot Header Image

Guess Barack Obama missed the Reagan Recovery*

When President Obama talks about the economy, it seems he derives his information not from historical facts, but instead from Keynesian theory.  At a campaign fundraiser in Maine, the politician once billed as post-partisan accused his partisan rivals of “madness”:

“We won’t win the race for new jobs and new businesses and middle-class security if we cling to this same old, worn-out, tired ‘You’re on your own’ economics that the other side is peddling,” Obama said.

“It was tried in the decades before the Great Depression. It didn’t work then. It was tried in the last decade. It didn’t work,” he said. “You know, the idea you would keep on doing the same thing over and over again, even though it’s been proven not to work. That’s a sign of madness.”

Well, the economics that the incumbent derides as “You’re on your own” created more jobs in September 1983 than were created in the past five months, among the best months for job creation since Mr. Obama took office.

In the decade** before the Great Depression, under the policies of Republicans Warren G. Harding and Calvin Coolidge, the United States enjoyed the “Roaring Twenties,” an era of “sustained economic prosperity.“  It was only when Coolidge’s successor, Herbert Hoover, increased federal spending and ramped up government regulation, that the economy began to collapse, leading to the Great Depression.

Under Hoover and his successor Franklin Delano Roosevelt, federal officials tried various forms of state meddling over and over again, yet none of those policies proved to work.  Throughout the 1930s, unemployment remained high.  By this president’s logic, wouldn’t it be a sign of madness to adopt economic policies similar to Mr. Roosevelt’s?  Or Mr. Hoover’s?

(H/t The Gateway Pundit.)

*and never learned about the Roaring Twenties.

**Yes, I read that Mr. Obama referred to the decades before the Great Depression.  Yet, you can hardly call Republican policies of the 2010s similar to those of that “Progressive Era.”  But, they do share some similarity with those of Messrs. Harding and Coolidge in their laissez-faire approach.

UPDATE:  John Hawkins doesn’t mince words in reacting to the president’s remarks quoted above:

. . . “you’re on your own” economics, which apparently extended from the founding of the country until the day Barack Obama took office, didn’t work. Sure, it produced the most technologically advanced nation on the planet, the world’s largest economy, and made us into a super power, but that’s“madness” compared to Obamanomics, which cost us our AAA credit rating, has produced the longest streak of above 8% unemployment since the Great Depression, and is on track to produce 13 trillion dollars of debt over the next 10 years.

Listening to Barack Obama lecture ANYONE else on economics is like getting a lecture from Jimmy Carter on the proper way to execute a hostage rescue. What’s up next? Will we have Bill Maher explaining civility?

Share

11 Comments

  1. Obama’s lack of self-awareness is astonishing; he repeatedly accuses his opponents of doing exactly the things that he is doing himself. How many times have Keynesian policies been tried, and how many times have they worked? How many times has Obama insisted upon spending to stimulate the economy, and how many times has it ameliorated the economic malaise?

    What else is astonishing about Obama is his ignorance. Socialist countries include the Soviet Union and Cuba (both famous for their strong economies, right?), while Hong Kong (which is apparently just some poor, sleepy fishing village; I’ve never heard of it) is an example of a capitalist society.

    Comment by Rattlesnake — March 31, 2012 @ 9:42 pm - March 31, 2012

  2. It was only when Coolidge’s successor, Herbert Hoover, increased federal spending and ramped up government regulation, that the economy began to collapse, leading to the Great Depression.

    Thank you for saying it!

    To be precise, the Fed did get out of hand and create a stock market bubble in the late 1920s. The Recession of 1930 was needed to clear out those malinvestments and would have happened in some form, regardless of exactly what triggered it. (Think of an overinflated balloon… just about anything can serve as a pin.)

    The question is, why did the economy not recover after 1930? That’s when Hoover and Roosevelt “increas[ing] federal spending and ramp[ing] up government regulation” really did its evil work. They choked off the economy’s ability to recover, much like Obama’s policies have choked off recovery today.

    So, Hoover and Roosevelt’s Big Government policies killed the post-1930 recovery. *After* he was out of office (and reflecting on his mistakes as President), Hoover finally turned laissez-faire.

    Comment by ILoveCapitalism — March 31, 2012 @ 11:53 pm - March 31, 2012

  3. when’s the last time the govt actually tried reducing spending, cutting programs and departments, doing away with regulations, and lowering taxes? that would be doing something different.

    Comment by Real American — April 1, 2012 @ 1:57 am - April 1, 2012

  4. No one challenges what, Obama, says and republican leadership continues with it’s useless low key approach. Romney has said, “I won’t go after, Obama, like some others have done”. But he has no problem going after republican candidates.

    Conservative talk radio is the only voice challenging Obama and the democrats.

    Comment by Richard Bell — April 1, 2012 @ 8:16 am - April 1, 2012

  5. This is another example of living in a false fantasy world. Obama refuses to acknowledge reality because his fantasy world is total failure.

    Comment by Sebastian Shaw — April 1, 2012 @ 9:50 am - April 1, 2012

  6. Maybe someone should just show the President this chart

    http://beatbarack.blogspot.com/2012/02/obamanomics-vs-reaganomics.html

    Comment by Ryan — April 1, 2012 @ 10:33 am - April 1, 2012

  7. Obama spent the years of the Reagan Recovery in several universities paid for with Other People’s Money, and being an anti-nuclear protestor. Not exactly the crucible of financial wisdom.

    Comment by DaveO — April 1, 2012 @ 11:43 am - April 1, 2012

  8. In the words of, George Michael, “Somebody tell me why I work so hard for you”?

    Comment by Richard Bell — April 1, 2012 @ 12:49 pm - April 1, 2012

  9. Check out a book called “Since Yesterday” Perhaps you’d get a clearer and more timely view of Hoover’s presidency and the first 6 years of Roosevelt’s.

    And blame the Fed? how about the lax oversight of the financial industry? oh, right, in the years afterward (Roosevelt) safeguards were put in place, like the Glass-Stengall act, 1933. Then, 66 years, that act was repealed and that pretty much began the tipping point back down the slope to a major financial crash. and that’s the lesson for today in the “those who are don’t learn from history are doomed to repeat it” category.

    Comment by Kevin — April 2, 2012 @ 10:51 pm - April 2, 2012

  10. Apparently, someone has never heard of Sarbanes-Oxley, much less Dodd-Frank.

    And doesn’t know much about history, in general.

    Comment by ILoveCapitalism — April 3, 2012 @ 3:00 am - April 3, 2012

  11. hmmmm….Dodd-Frank; passed by the Democrat controlled Congress under a Democrat President.

    Sarbanes-Oxley: pretty funny piece of legislation passed by a Republican congress under a Republican president. Biggest effect I’ve seen is that companies covered under it make employees take training to make sure that they understand it. Funny thing is, most employees don’t have the power/control/decision making capability covered under the act. High level execs are still permitted to says “oops!” and then leave with heir big pensions and other benefits still covered.

    It really comes down to businesses continuing to engage in questionable practices during much of the 2000′s that led to economic recession, mostly spurred on by Republicans in control of the federal government.

    Comment by Kevin — April 3, 2012 @ 9:25 pm - April 3, 2012

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.