Reagan Economy vs. Obama Economy
November 4, 2012
If there are any American Presidents who will go down in history, they should be Ronald Reagan (1981-1989) and Barrack Obama (2008 – Present). They both assumed office at a time when America’s economy was slumping. The American electorate voted them in office with the hope that they would recover the economy. Sure enough they did keep their promise to the American electorate, but still amidst a few challenges. Their approach to recovering the economy appeared quite dissimilar. While Reagan concentrated on cutting taxes and removing economic growth bottlenecks, Obama on the other hand focused on raising the reach and size of government. These are just some of the differences between the Reagan and Obama economic eras. Much of this paper is devoted to comparing and contrasting the economic era of these two presidents. This paper will also see how the Reagan economic era paved the way for today’s, Obama economy. In addition, we will identify some of the errors in Ronald Reagan’s policies.
When Ronald Reagan sat at the helm of presidency in 1981, a strong beam wind that had driven the American economy into a slump turned into a tailwind. Three worsening economic slumps were threatening the economy. For instance, oil prices dropped from 70 dollars to 20 dollars in the period between 1982 and 1988 (Reagan & Denny, 2011). By contrast during the Obama era, oil prices increased from 55 dollars to 90 dollars in the period between 2008 and 2012. In addition, during Reagan’s stint as the president, the global economy enjoyed the positive aspect of globalization. Europe and Japan seemed to have benefited the most from the globalization. This globalization saw America’s economy under Reagan being stimulated. The same case has been witnessed during Obama’s stint as the president.
Second, when Reagan sat at the helm of...
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Leuchtenburg, W. (2009). IN the shodwo of FDR: From Harry Truman to Barrack Obama. Ithaca, NY: Cornell University Press.
Niskanen, W. (1988). Reaganomics: An insider’s account of the policies and the people. New York: Oxford University Press.
Reagan, M. & Denney, J. (2011). The new Reagan revolution: How Ronald Reagan’s principles can restore America’s greatness. New York. St. Martin’s Press.
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