The media and big government “leaders” (RINOs and democrats) keep repeating this mantra.
It is a blatantly false statement and needs to be corrected.
Unemployment
Current unemployment = 6.1%, predicted to go to 7%, maybe 8%
In 1975, the unemployment rate peaked at 9 percent. In 1982, it jumped to 10.8 percent.
Interest rates
Prime rate – Today = 4%
The Prime rate in 1980 was 20%.
Inflation
2008 – 4.5 to 5%
1980 – prices (inflation) were rising at an annual rate of 13.5 percent.
30 year fixed Mortgage rate
2008 – 6%
1980 – 18 to 19% (yes a mortgage had a lower interest rate than the prime rate)
mortgage rate history
Stop believe this is the worst economy since the depression. The 70s recession that carried into 81 and 82 was much worse than today. At the time the misery index (Unemployment plus inflation) was created. Today it is 10 to 11, It was above 10 for virtually all of the 1970s through 1985.
Image an economy like today for the next 15 years. That was the 70s and early 80s. The length of this was all made worse by government intervention.
For those 40 and under the 70s are not part of our memory since we were so young or not alive yet.
We (40 and under) have never had a bad recession. It is part of the normal economic cycle. Businesses fail, new businesses start and result in even stronger companies unless government interviews and makes things worse.
1970s
History repeats when people do not learn from it, A republican president is blamed for an unpopular war (Nixon & Vietnam, didn’t start but was saddled with it) An oil embargo limited oil supply so prices rose and resulted in a recession, government intervened with price controls (Nixon and Ford) which made a bad situation worse and lengthened the recession. The Democrats were given total control of the federal government in election of 1976 (Carter, the democrats already ran both house of congress) and tried to have government fix everything. The Carter administration created new departments of education and energy. Its energy policy was criticized, however, especially after severe gasoline shortages developed in 1979.
2000s
A republican president (Bush 2) has an unpopular war (Iraq), over regulates industry poor energy production policies result in an dramatic rise to oil price which starts a recession (maybe, we will know in late-Jan 09 if America is really in a recession). Government intervention occurs and we do not know the results (so far pretty dismal at best). History says it will be bad since usually when government helps it makes the matter worse and it takes longer for the private section to overcome the government interference. Democrats are elected to be in control of the entire federal government.
Everyone is trying to scare people into thinking things are bad so let the government solve everyone’s problem.
Remember two items
1) Government is the problem and not of the solution – Reagan paraphrased
2) It took Carter to allow Reagan and his conservative ideals to dominate America Politics for 25 years.
Posted by suemdonk 
