The Two Distinctly Different Outcomes for two different fiscal policies.
Obama's prescription for the last recession was to reinvigorate the economy by passing the ARRA and other policies over the next four years. These included ObamaCare to regulate the health care market, Dodd-Frank to regulate banks, Cash for Clunkers and extending unemployment benefits that collectively increased economic uncertainty and reduced incentives to hire and work.
President Reagan diagnosed government as the problem and prescribed a plan of lowering tax rates and reducing regulations to free firms and workers from disincentives to invest and work. This limited-government prescription led to a 92-month expansion — one of the longest on record — and helped increase the percentage of the working population from 57% to 63%.
Historically, there is a clear fiscal policy prescription for bringing people out of their parent's garage and back into creating businesses in their own garage: low taxes, spending restraint and stable regulations.
Posted by Jill Fallon at March 28, 2014 10:20 AM | Permalink