Saturday, September 6, 2014

The Economy. Everything you are sure you know is wrong.

Which president would you rather have manage the economy, hold down taxes, reduce the debt, deliver high returns to investors, create a positive climate for business growth, and reign in the size of government - Barack Obama or Ronald Reagan?

That's a joke, right? Everyone on the face of the earth knows that Obama is a big government, socialist, tax-and-spend liberal, who hates business, right? And The Gipper was the bestest ever gen-u-wine, gold-plated example of everything good, righteous and true when it comes to conservative creed. Hell, he deserves to be the fifth face on Mount Rushmore for his brilliant handling of the economy. Everyone knows that.

Except it's completely false.

"Economically, President Obama’s administration has outperformed President Reagan’s in all commonly watched categories.  Simultaneously the current administration has reduced the debt, which skyrocketed under Reagan.  Additionally, Obama has reduced federal employment, which grew under Reagan (especially when including military personnel,) and truly delivered a 'smaller government.'  Additionally, the current administration has kept inflation low, even during extreme international upheaval, failure of foreign economies (Greece) and a dramatic slowdown in the European economy."
Forbes Magazine, Sept 5, 2014

“President Reagan has long been considered the best modern economic President.  So we compared his performance dealing with the oil-induced recession of the 1980s with that of President Obama and his performance during this ‘Great Recession.’
President Obama’s job creation kept unemployment from peaking at as high a level as President Reagan, and promoted people into the workforce faster than President Reagan. President Obama has achieved a 6.1% unemployment rate in his 6th year, fully one year faster than President Reagan did.  At this point in his presidency, President Reagan was still struggling with 7.1% unemployment, and he did not reach into the mid-low 6% range for another full year.  So, despite today’s number, the Obama administration has still done considerably better at job creating and reducing unemployment than did the Reagan administration. We forecast unemployment will fall to around 5.4% by summer, 2015.  A rate President Reagan was unable to achieve during his two terms.
[...] The labor participation rate adds in jobless part time workers and those in marginal work situations with those seeking full time work.  This is not a 'hidden unemployment'. (In other words, it's not a false number created by people who have 'given up')  It is a measure tracked since 1900 and called 'U6' today by the BLS
What’s now clear is that the Obama administration policies have outperformed the Reagan administration policies for job creation and unemployment reduction.  Even though Reagan had the benefit of a growing Boomer class to ignite economic growth, while Obama has been forced to deal with a retiring workforce developing special needs. During the 8 years preceding Obama there was a net reduction in jobs in AmericaWe now are rapidly moving toward higher, sustainable jobs growth.
Bob Deitrick, CEO of Polaris Financial Partners and author of “Bulls, Bears and the Ballot Box”



Who knew?
Those who follow the actual data, and not the media Obama-bashfest knew. And that's why they're all making a ton of money right now in the market, and you're not. 



2 comments:

  1. Replies
    1. Thanks. And yes, by the way, my stocks are kicking ass. Because I watch facts, not Fox.

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