Luca Grella said:
Do you reallly think that 650K job losses and 8.1% overall
unemployment rate is the result of the last 45 days policies?
Maybe Regan was right 30years ago, today he wouild be plain
wrong.
One can blame the previous administrations for many things, but in the end doing so misses a key point: The stock market looks forwards, not backwards. When markets opened on the morning after Obama was elected, the S&P 500 index stood at 1005. On March 6th, it closed at 683. So in the "poll" that really matters, we are down 32%. So far there is no bottom in sight, and the most punishing aspects of the Obama policy wish list, such as Carbon Taxes, are yet to come. Scary.
Reagan absolutely was right, and would be in this day. Even though human psychology is a large part of economics (thus making it less than a "hard science") certain fundamentals are still true where rational people are involved.
1) The way out of a recession is production
2) In the long run the free market and supply and demand is always the most efficient way to allocate resources
3) In almost all respects the private sector is a more efficient producer than the government
4) Government only can be funded at the expense of the private sector
Reagan knew the way out was to unleash the private sector. The result was one of the largest economic expansions in US history. This is an indisputable fact. Team Obama is doing just the opposite. Therefore I would expect opposite results.