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There has been a lot of talk about how bad things are and that we are in a crisis that the Congress and President insist that ramming a bill through that no one has read and adding to the National Debt by 2.4 TRILLION dollars over the next two years is a MUST. Since I am a little older and some of BCR’s readers don’t recall the years that led to Ronald Reagan, I did the little chart above to put things in perspective.
Unemployment Data
Inflation Data
Interest Data
The chart above shows these key indices from 1970 forward. Note the box covering the Jimmy Carter era. These indices rise and fall with normal market cycles. We are now at the bottom of one such cycle. Unfortunately, this low was created by government interference in the financial sector. Politicians forced lenders to make mortgages and loans based on factors (social engineering, better known as socialism) other than the borrowers ability to pay (such as race, poverty, etc). Now, as with any other historical low point, the markets will find their bottom and begin the upward trend once the problems created by the government are corrected. Any economist knows this, so why is this a crisis that requires such drastic action? As with the Great Depression, such actions by the government only serve to deepen the economic downturn and make things worse.
Notice that this same mistake was made by Jimmy Carter, and the results are clear and evident. We called a combination of these indices, the Misery Index (a special one made just for the Carter Administration by Carter himself).
| Rank | President | Time Period | Index Average | Low | High |
|---|---|---|---|---|---|
| 5 | Harry Truman | 1948–1952 | 7.87 | Dec 1952 = 3.45 | Jan 1948 = 13.63 |
| 1 | Dwight D. Eisenhower | 1953–1960 | 6.26 | Jul 1953 = 2.97 | Apr 1958 = 10.98 |
| 3 | John F. Kennedy | 1961–1962 | 7.27 | Jul 1962 = 6.40 | Jul 1961 = 8.38 |
| 2 | Lyndon B. Johnson | 1963–1968 | 6.78 | Nov 1965 = 5.70 | Jul 1968 = 8.19 |
| 7 | Richard Nixon | 1969–1973 | 9.98 | Jan 1968 = 7.80 | Dec 1973 = 13.61 |
| 10 | Gerald Ford | 1974–1976 | 15.93 | Dec 1976 = 12.66 | Jan 1975 = 19.90 |
| 11 | Jimmy Carter | 1977–1980 | 16.27 | Apr 1978 = 12.60 | Jun 1980 = 21.98 |
| 9 | Ronald Reagan | 1981–1988 | 12.19 | Dec 1986 = 7.70 | Sep 1981 = 19.33 |
| 8 | George H. W. Bush | 1989–1992 | 10.68 | Sep 1989 = 9.64 | Nov 1990 = 12.47 |
| 4 | Bill Clinton | 1993–2000 | 7.80 | Apr 1998 = 5.74 | Jan 1993 = 10.56 |
| 6 | George W. Bush | 2001 – 2008 | 8.10 | Oct 2006 = 5.71 | Aug 2008 = 11.47 |
The index was only 8% during President Bush, and is peaked during the Carter years at almost 22%. Left alone (a few tax cuts for the “rich” would help) the economy will be just fine. However, there is a Socialist agenda that must be forwarded, so the powers-that-be need a crisis. Hold onto those wallets folks!
Oh I almost forgot about those long lines at the gas pumps and gas rationing….how wonderful those years were.
That will or should open some eyes.
I think Obama will sign the bill Tuesday. Lies all lies, This is from the Obama WWW site:
Sunlight Before Signing: Too often bills are rushed through Congress and to the president before the public has the opportunity to review them. As president, Obama will not sign any non-emergency bill without giving the American public an opportunity to review and comment on the White House website for five days.
Shine Light on Earmarks and Pork Barrel Spending: Obama’s Transparency and Integrity in Earmarks Act will shed light on all earmarks by disclosing the name of the legislator who asked for each earmark, along with a written justification, 72 hours before they can be approved by the full Senate.