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How Obama's economic recovery stacks up against Reagan's - The Week
Reagan also had a more favorable climate for bringing down the unemployment rate, as CNN's Charles Riley pointed out:
Reagan had an advantage over Obama: The recession of the early 1980s was caused by runaway inflation, which the Federal Reserve countered by hiking interest rates. When inflation dropped, the Fed lowered rates and a massive economic boom resulted.
The major causes of the recent recession were a banking crisis and housing bubble that exploded during President George W. Bush's final months in office.
Another difference: With comparatively small debt loads, Reagan was able to push through a 23 percent across-the-board cut of individual income tax rates. Obama, meanwhile, entered the presidency with substantial budget deficits and an economy contracting at a rate of 6.7 percent
Reagan also had a more favorable climate for bringing down the unemployment rate, as CNN's Charles Riley pointed out:
Reagan had an advantage over Obama: The recession of the early 1980s was caused by runaway inflation, which the Federal Reserve countered by hiking interest rates. When inflation dropped, the Fed lowered rates and a massive economic boom resulted.
The major causes of the recent recession were a banking crisis and housing bubble that exploded during President George W. Bush's final months in office.
Another difference: With comparatively small debt loads, Reagan was able to push through a 23 percent across-the-board cut of individual income tax rates. Obama, meanwhile, entered the presidency with substantial budget deficits and an economy contracting at a rate of 6.7 percent