March 17, 2009
Several opinions have been expressed about the size of the Obama economic stimulus proposal. They imply that the proposed cost is too high, as if a proposal of this magnitude has never before been considered or implemented. Faced with recession at the beginning of his presidency, Ronald Reagan’s spending policies increased the national debt from $700 billion to $3 trillion. Real gross domestic product increased and sixteen million new jobs were created during Reagan’s time in office. Similarly, Obama’s proposal is not based solely on increased government spending. His plan includes tax relief too. Not everyone was satisfied with the Reagan presidency, but criticism of Obama’s plan should be tempered by awareness of the policies of a locally revered former President. Much of the debt incurred by the deficit spending of the Reagan years was purchased by Japan and matured during George H. W. Bush’s presidency. However, by the end of the Clinton administration, deficit spending was erased and there was a budget surplus.
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For anyone interested in fact checking, the national debt numbers used in this article came from a Wikipedia entry about Ronald Reagan. They reference their sources, but it is also easy enough to check using the US Treasury website and researching the debt. I was able to view copies of the national debt reports produced by a division of the Treasury Department. The numbers that came from Wikipedia appear to be rounded, but what's a few billion dollars among friends?
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