Thursday the unemployment figures were reported to be as high as they have been in the last 26 years. Obama’s opposition pounced:
I remember 26 years ago. Third year into Reagan’s presidency. High unemployment, low wages and double-digit interest rates. Ah, good times… Back then the recession was created by the Fed raising rates to rid ourselves of the crippling stagflation that had gripped the nation. When that worked (inflation rates dropped from 13.5% in 1981 to 3.2% in 1983) deficit spending by the Reagan administration worked us out of the recession, along with a measured and gradual reduction in interest rates. Unemployment dropped, albeit gradually.
Elephants are suppose to have good memories, but the GOP seems to forget how Reagan’s deficit spending helped get unemployment down to reasonable numbers 25 years ago.
Epilog: The failure of Reagonomics resulted from the fiscal policy that was imposed after the recovery, but that’s a topic for a different day.