2008-09-24

Reaganomics Part Deux


So is it me or is this big corporate bailout reminiscent of Reaganomics aka Trickle Down Economics aka supply side conomics, where we focus on saving rich for the supposed benefit of the middle class and poor? Obviously those who run the show, Henry Paulson, Ben Bernanke, and others didn't seem to notice the collapse of the U.S. economy until Wall Street was in deep. We also don't seem to be learning from our own history. Does anyone remember the Savings and Loan Crisis and the stock market crash of 1987?

In the 1980s Reaganomics was all the rage and it resulted in high inflation and high unemployment aka stagflation. Remember Bush has been cutting social programs left and right, and this move to save Wall Street is akin to Reagan's need to slash taxes, with the biggest reductions to those with the highest incomes. Bush has given us a high deficit, just like Reagan. We are dealing with high gas prices, just like Reagan had to deal with when he entered his Presidency.

This bailout is going to do the same thing to the economy Reaganomics did, it is going to be a rough ride. We are in a recession, whether or not the government wants to acknowledge it. No one seems to know what the hell is going on, and we need to be concerned.