Didn't Reagan start the debt crisis?
Economist Mike Kimel notes that the five former Democratic Presidents (Bill Clinton, Jimmy Carter, Lyndon B. Johnson, John F. Kennedy, and Harry S. Truman) all reduced public debt as a share of GDP, while the last four Republican Presidents (George W. Bush, George H. W. Bush, Ronald Reagan, and Gerald Ford) all oversaw an increase in the country’s indebtedness. Economic historian J. Bradford DeLong, former Clinton Treasury Department official, observes a contrast not so much between Republicans and Democrats, but between Democrats and "old-style Republicans (Eisenhower and Nixon)" on one hand (decreasing debt), and "new-style Republicans" on the other (increasing debt). Similarly, David Stockman, director of the Office of Management and Budget under President Ronald Reagan, as op-ed contributor to the New York Times, blamed the "ideological tax-cutters" of the Reagan administration for the increase of national debt during the 1980s.
Bruce Bartlett, former domestic policy adviser to President Ronald Reagan and Treasury official under President George H.W. Bush, attributes the increase in the national debt since the 1980s to the policy of "starve the beast" and an aversion for tax increases.
Using nominal dollar measures, CNN's Jack Cafferty and CBS's Mark Knoller have noted that the US national debt has increased more rapidly under President Obama than under any other U.S. president, and that it had increased by $4 trillion since the beginning of his term of office
- RocketstarLv 58 years agoFavorite Answer
People don't seem to realize how bad Reagan was in so many ways. And he was a bad stiff actor too.
That's just how bad Bush was also and ruined the economy for the middle class by giving away the store to his super rich pals.
Between the wars and the tax cuts for the uber super duper "job creators" during Bush we lost and amazing 5.5 Trillion dollars.
Gee what could we have done with that money?
- colleyLv 43 years ago
No. money owed are a classic element of any united states's financial device, and the only circumstances while the country hasn't been in debt became while it became by potential of twist of destiny, under Jefferson, and our way of measuring how plenty tax we would convey at the same time relative to expenditure became not high-quality tuned. Debt does some issues: a million. Builds credit 2. helps help greater healthy banks 3. Builds faith approximately our solvency to different foreign places countries 4. Creates a vested pastime in different countries which % to invest in the country. Why is it undesirable if a rustic would not have a debt? because of the fact of this they have greater effective left over funds; in different words, they're getting funds off of taxes, and not doing their pastime in offering centers! because of the fact the cheap is merely cut back up each 10 years, we will not stability precisely how money owed and taxes are going to artwork out, do not forget that 10 years is a protracted time and we would would desire to spend money in circumstances of emergency, or changing circumstances. So, a debt isn't evil, and in a brilliant number of strategies, is solid. As for the present "debt disaster", that's led to generally by potential of the Bush tax cuts and the Afghanistan and Iraq wars (source below)
- 8 years ago
Except for a short time during Andrew Jackson's second term, we have always had debt. In the past, we've grown our way out of debt trouble but this time the tea party freshmen in Congress want us to shrink our way out of debt.
The last time our government tried to shrink us out of debt, they turned a stock market crash into a global depression. Thanks Hoover. How 'bout it tea party patriots? Am I wrong? Sigh...
Thomas Friedman has an interesting take on this in his new book "That Used to be Us."
Between Nixon's visit to China and the Berlin Wall coming down, 2 billion new capitalists entered the market. Our government failed to realize the destabilizing effect that many new people would cause.
In my opinion our debt crisis was caused by the GLB ACT and the Securities Modernization Act, both signed by Clinton near the end of his 2nd term. Those pieces of legislation dealt with the growing pressure on the US Treasuries market. China and others refused to invest in anything else and the dollar was in danger of becoming too strong, a terrible thing for our exports at a time when our imports far exceeded our exports. We convinced would-be investors that the real estate market was safe, then we allowed Wall Street to hold mortgages and sell them as collateralized debt obligations, then we allowed AIG and the rest to insure them as credit default swaps.
Shin: The CRA could never have been a significant issue if the Glass-Steagal firewall between commercial and investment banks wasn't taken down by the GLB Act.
- Anonymous8 years ago
He did a lot of things that laid the foundation for what we are going through now, yes.
The biggest thing he did was invent the Laffer Curve, and make it so that it's political suicide to raise taxes.
Reagan made it OK to be greedy, and he made it so that it's impossible for America to pay for its own expenses. So, yes, in a way he did. He's was the worst thing to happen to America in nearly 150 years.
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- StephenGLv 78 years ago
Yes he dis
- Shin NoharaLv 68 years ago
Seeing as the Community Reinvestment Act was signed under Carter... and was the genesis of the current problems, I think not.
- Anonymous8 years ago
Jimmy Carter the First started it and Jimmy Carter the Second worsen it !
- aceLv 68 years ago
No, he continued it, then increased it.Source(s): Ron Paul 2012