It is understandable that anyone born after 1970 doesn’t remember the disaster that Ronald Reagan inherited from Jimmy Carter. It is pathetic that people like Nancy Pelosi, Chuck Schumer, and so many in the media look at the first two months of Trump’s term and pretend that he is the cause of the problems today, and not the disaster he inherited. 

Reagan inherited disastrous inflation that hit over 14% in the summer of 1980, yet the media and other Democrats campaigned for the reelection of Carter. Reagan also inherited a very dangerous world , with the possibility of war with the powerful Soviet Union.

Reagan inherited high unemployment and a slow economy:

The labor market, weakened in early 1980 by declining employment and rising joblessness, recovered a bit in the second half of the year, with employment showing gradual improvement and unemployment holding at 7.5 percent.

Reagan inherited very high interest rates. The mortgage rate was over 13% in 1980, and peaked at over 16% in 1981. Reagan had to get rid of the high interest rates and high inflation, so we had a deep recession in 1981 and 1982:

Lasting from July 1981 to November 1982, this economic downturn was triggered by tight monetary policy in an effort to fight mounting inflation.

The stock market crashed for the first thirteen months of Reagan’s presidency. The Dow hit a low of 778 in August of 1982, and the S&P hit around 112 in February of 1982.

Reagan always knew the government was not the solution to the economy’s problems. He understood that capitalism and the private sector were the solutions, as they were what made America the greatest and richest country in the world in over 200 years (not big government).

Reagan started cutting tax rates in 1981. The top rate went from 70% to 28%. The lower rates goosed the economy and increased government revenues. Reagan also deregulated gasoline prices in 1981—Reagan, like Trump, knew that low oil and energy prices are what makes an economy thrive. Democrats have always blamed oil companies for high prices and gouging. The average price of gasoline in 1980 was $1.19. That would be well over $4 today with inflation.

The average price of gas on November 5, 2020 when Biden was announced the winner, was $2.11—this was up less than 100% in 40 years despite higher taxes. Think of how other prices have skyrocketed in those 40 years, especially where the government has significant control like health care and education.

From Google AI: 

The result of Reagan’s policies led to what economists refer to is the long boom, a period of economic expansion of 18 years from 1982 to 2000.

Here are some statistics from 2000 at the end of the long boom:

• Inflation: 3.4%
• Mortgage rate: 8.05%
• Unemployment Rate: 5.8%
• Dow: Over 10,000 average in 2000

The results of Reagan’s policies were tremendous for Americans. 

And now Trump has inherited inflation that more than doubled since Biden took office.

Crude oil doubled from $40 to $80, the federal reserve raised interest rates almost 5% to ring out Biden’s inflation, and government spending and regulations grew substantially under Biden.

Biden handed off a $2 trillion deficit in a supposedly good economy.

Biden inherited a fairly secure border and handed off a disaster.

Biden inherited a relatively peaceful world and handed off two wars.

Biden inherited a rapidly growing economy after COVID and handed off a slowing economy.

Yet somehow, the media and other democrats are blaming Trump for not correcting the problems he inherited in less than two months. Thank goodness we have a president that is going through spending line by line instead of going along with automatic increases. The U.S was headed for collapse under the weight of massive debts.

Give Trump time. It took Reagan a long time to wring out problems he inherited.

Image: YouTube video screen grab.