In 1981, President Ronald Reagan Championed the Passage of the Economic Recovery Tax Act (The Kemp-Roth Bill). It Cut individual Federal Income Tax Brackets by 25 percent, Phased Over Three Years, and Indexed the Rates against Inflation to Prevent Creeping Bracket Increases in Future Years. The Act also Instituted the Accelerated Cost Recovery System and a 10 Percent Investment Tax Credit, which led to a Substantial Increase in Capital Formation. The Goal was to Create Incentives by Removing Significant Government Barriers to Investment, Productivity, and Growth. The Result: Inflation Dropped from 13.5 percent in 1980 to 4.1 percent in 1988. Interest Rates dropped from 18 percent on a thirty-year fixed mortgage in 1981 to 8 percent in 1987; and Unemployment dropped from a peak near 10 percent in the recession of 1981-82 to 5.5 percent in 1989, once the full force of the tax cuts kicked in.* The Reagan economic program, based largely on free market principles, spurred economic prosperity that created, over the next twenty-five years, forty-three million jobs and $30 Trillion in wealth.
http://townhall.com/columnists/georgeallen/2007/08/13/reagan_tax_cuts_lifted_americans+ Source is: Editorial, "Still Morning in America," Wall Street Journal, Jan. 20, 2006, A14.
In The Free Market, A Man Born into Wealth or who has otherwise acquired Great Riches can lose his fortune depending on how he chooses to behave. Conversely, a Man Born into Poverty or who has lost wealth once obtained can acquire a fortune, depending, again, on how he chooses to behave. When the individual or even a large business makes a wrong decision, its impact is limited and more easily absorbed by the free market. However, when the Statist makes a wrong decision, its impact is far-reaching, for he uses the power of government to impose his decision on as many individuals and businesses as possible, which distorts the free market itself.
The Conservative understands that if America is to remain a vigorous, civil society in which the individual can continue to improve and progress, the forces arrayed against the free market must be interrupted and their course ultimately reversed. President Abraham Lincoln excapsulated it well when he said, "Property is the fruit of labor...property is desirable...is a positive good in the world. That some should be rich shows that others may become rich, and hence is just the encouragement to industry and enterprise. Let not him who is houseless pull down the house of another; but let him labor diligently and build one for himself, thus by example assuring that his own shall be safe from violence when built."
** Source is: Abraham Lincoln, "Reply to New York Workingmen's Democratic Republican Association, March 21, 1864," The Collected Works of Abraham Lincoln, ed. Roy P. Basler, vol 7 (New Brunswick, N.J.: Rutgers University Press, 1990), 259-60.
Bottom Line is STOP with all of the Bailouts, Stimulus, Omnibus, TARP Etc. and give the Money back to the PEOPLE to Empower US to make Better Decisions with OUR OWN MONEY like WE DID Once before back in the Eighties from the Economic Recovery Tax Act, the Accelerated Cost Recovery System, and the Investment Tax Credit. America Should have Learned a Lessons from it's Own History when facing Economic Downturns of this Magnitude. This is NOT a first time America has faced times like this and Probably NOT the Last time either. How we faced it back in the early Eighties and how we are Facing it NOW is TOTALLY DIFFERENT. Obama and the Current Democratic Leaders in Washington are CHOOSING to follow closer to FDR's Recovery Model than Reagan's. Which is Sad and Tragic for Americans NOW living in America. It is OBVIOUS to ANYONE Who Lived and Survived the Early Eighties and SHOULD Know Better Fared FAR GREATER than those Who Suffered through and Survived the Prolonged Great Depression Era under FDR's Leadership. I am NO Genius or Rocket Scientist but MY GUESS and MY OPINION would be that if You Asked the People Who Survived through Rough Times in American History, Over 95% of them Would Favor President Reagan's Vision/Plan to Economic Recovery as opposed to FDR's or Obama's. That's Just My Guess/My Opinion though! Here is a Link to Show You the Difference of what Reagan faced and brought America through and what Obama faces today:
http://3.bp.blogspot.com/_otfwl2zc6Qc/SZoeacBhYqI/AAAAAAAAJRo/Lgyy8QAAJzA/s1600-h/1980s.bmpAfter Seeing that Chart and Reading ALL of the Above Evidence/Proof, it would be HARD (not impossible) to argue that Obama and the Current Democratic Majority in Washington doesn't have a Positive Model/Blueprint for Positive Results on HOW TO TURN AROUND THIS CURRENT ECONOMIC DOWNTURN AMERICA IS IN! The Evidence/Proof is in the Facts. The Proof/Evidence has been Proven in Our History!! (not even more than 25 years ago)It's time Obama Stops looking to the past pointing blame at Bush and start giving America what they Voted him into office to do. Obama was supposed to Inspire Americans to Hope and Bring Sweeping Change but Instead WE GET NOTHING BUT MORE OF THE SAME! Give US a break and start doing YOUR Job Mr. President!! Americans are Literally SICK OF ALL OF THIS!Here is My Last Link to a Graph that Shows just Exactly How Much Bush Spent and How Much Obama is Still Spending! http://blog.heritage.org/2009/03/24/bush-deficit-vs-obama-deficit-in-pictures/
Thank You For Taking the Time to Read this Blog. Hopefully it Helps to clear up some stuff You weren't Sure about before but NOW have a Reference Point to look back to when Talking about American Economics.
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