by Ryan on September 5, 2009

in Economy

The August unemployment numbers came out Friday indicating that the USA is still hovering at a European 9.7% unemployment rate.  That’s the highest it’s been since 1983 and doesn’t include the people who’ve stopped looking for jobs or break it down into which segments of the population are being hit harder than others.

The difference between then and now is that back then inflation was being painfully exorcised from the economy, the fundamentals of the economy were getting stronger all the time, we didn’t have a personal and public debt crisis like today, and the Reagan Administration convinced Congress to cut taxes and de-regulate. 

In other words, nothing like today’s situation — high personal debt, inevitable inflation, and more and more taxes and regulation hurting the private sector and the individual citizens who actually contribute.  The only problem with the 25-year global boom which started here in the USA by 1983 is that Congress didn’t cut spending while it cut taxes.  Hence, deficits became a concern, though nowhere NEAR where they are today. 

Looking at this another way, back then we were on the way up while today we are heading towards the edge of a possible jobless recovery (what ever that means at the end of the day) followed by 1970s-style stagflation (if we’re lucky!).  Remember “Hope and Change!”  Well, I guess we’re still hoping for some change to be left in our pockets by the end of America’s stint as an Obama Nation.  May it be brief.

Leave a Comment

You can use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Previous post:

Next post: