Exhibit A – Ronaldus Magnus
“Only by reducing the growth of government can we increase the growth of the economy.” Ronald Reagan
When Ronald Reagan took office January 20, of 1981, he did not begin his Presidency by complaining about the mess that President Carter had left him. And indeed, it was a terrible mess. He began by rolling up his sleeves and implementing strong fiscal policies to strengthen and protect the Dollar and the US worker. My entire life, across the fruited plain, I heard folks retelling the horrors of the “Carter Years”: double-digit inflation, high unemployment, a humiliating GDP and how we, as a nation, had been reduced to rationing gas days based on license plate numbers. I never dreamed that I would have similar events to recount to the next generation about the “Obama Years”.
Many on the Left do not respect or honor President Reagan, yet they are quick to cite him or his actions conveniently when they are in alignment with their doxies and it suits their position. The reason they can’t stomach him is because President Reagan demonstrated that conservative economic principals work when someone has enough titanium infused into their spine to implement them. Tax cuts work every time they are tried.
To say Reagan was a successful President does not even begin to scratch the surface. In a day when Presidents laud what they “inherited”, President Reagan inherited an inflation rate of 13.5% which he astonishingly reduced to 4.2% by 1988. He reduced the unemployment rate from 7.5% to 5.5%. He also unleashed the greatest explosion of job creation (20 million new jobs), innovation and production that the world has ever seen and was responsible for a record 92 straight months of economic growth. Tax cuts work every time they are tried.
However, one of his greatest accomplishments, and one that really burns some biscuits, is that President Reagan proved that the way to increase revenue to the US Treasury is not to raise taxes on producers and job creators, but instead to reduce taxation. When Reagan was still making pictures, the top marginal rate was 90%. That means that for the highest income earners, after a certain point, 90 cents on every dollar was being taxed and collected by US Government. Therefore, even as an early Democrat in the 1940’s and later in the 1950’s, President Reagan recounted many times how he refused to make more than two pictures a year, because it was not worth it to him financially if he is only keeping 10 cents on every dollar. People will not continue to work if their incomes are being confiscated. As President, Reagan reduced the top marginal tax rate from 70% to 28% and in so doing, not only spurned the greatest economic recovery in any nation’s history, but–ready for this?—he also DOUBLED revenues coming into the Treasury from $500 Billion in 1981 to $1 Trillion in 1989 by cutting taxes, proving that “government is not the solution to our problem, government is the problem.”