Barack Obama’s No Ronald Reagan

August 24, 2010 06:41

The former president stimulated the economy by cutting taxes; Obama has done the opposite.

Brian S. Wesbury and Robert Stein at


“Guess what? The Washington Post says Obama advisors are looking to Ronald Reagan for “comparison and inspiration.” The Post says both presidents had “big and bold plans–Reagan with massive tax cuts, Obama with a massive stimulus package and national health care. Reagan’s goal was to shrink government. Obama’s efforts have enlarged government.”

A deep recession knocked Reagan’s approval rating down and Republicans took a beating in the 1982 mid-terms. But he won a landslide second election in 1984 anyway.”

“No matter how many Obama economists say that stimulus has a positive multiplier, it’s simply not true. Stimulus spending does not stimulate. Because it takes resources from growing sectors of the economy and pushes them to shrinking sectors of the economy– it de-stimulates. It taxes and borrows from good business models to support bad business models.

It’s simple math. Enlarging government means shrinking the private sector. History is clear: The larger the government share of GDP, the higher the unemployment rate.”


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