Daniel Mitchell at the Cato Institute contrasts this recession/recovery with the one in 1981. Reagan was able to create a rebound that lasted years and created real growth, even while fighting high inflation. The current Keynesian treatment has stalled the economy and jobs. Mitchell uses pretty charts he made to show the difference.
He also compares GW Bush and Obama’s economic activity:
- Bush increased government spending. Obama has been increasing government spending.
- Bush adopted Keynesian “stimulus” policies. Obama adopted Keynesian “stimulus” policies.
- Bush bailed out politically connected companies. Obama has been bailing out politically connected companies.
- Bush supported the Fed’s easy-money policy. Obama has been supporting the Fed’s easy-money policy.
- Bush created a new healthcare entitlement. Obama created a new healthcare entitlement.
- Bush imposed costly new regulations on the financial sector. Obama imposed costly new regulations on the financial sector.
That they are so alike, Mitchell combines their joint 12 year effort:
“The problem isn’t Obamanomics, it’s Bushobamanomics. But since that’s a bit awkward, let’s just call it statism.”