Sunday, December 23, 2012

Reality vs Lies...

Every society has its history...some prefer truth, but many Americans prefer myth. That's why we keep hearing about how great the economy was under the Great Reagan. The truth is that we haven't had a "great" economy since LBJ left office.

Note that average economic growth as a percentage of GDP enjoyed its sharpest rise and reached a post WW II high of almost 5.5% under Kennedy and remained above 5% under LBJ. Also note that during almost all of that period that Democrats had a super majority in both the House and the Senate, the only period of any length in which either major party has controlled all three key areas since WW II. We haven't seen even 4% since.

Then note the sharp plunge under Nixon and Ford, and the recovery under Carter, which Reagan, who raised taxes 11 times in 8 years, parlayed into a modest improvement. Then note the sharp decline under GHW Bush, the sharp rise under Clinton to a good bit better than Reagan, the steepest decline since the Great Depression under W Bush.

In fact, three of the top four average GDP growth periods came under Democrat Presidents,  while three of the lowest four came under Republicans.
So by all means, hang onto your myths, suckers.

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