A newly surfaced video shows that when Ronald Reagan began his first term as president in 1981, he faced worse economic issues than Barack Obama faced when he assumed office. In fact, during the Reagan era, there were actually three recessions, beginning in 1969, which culminated in the perfect financial storm in 1981-1982, causing unemployment to soar into double digits at a height of 10.8 percent.
Staring at turmoil, a dispirited public and a sputtering economy, President Reagan did just four things, the recently uncovered video reveals, to kill the recession and spark seven years of unprecedented growth.
Reagan’s Secret Recovery Plan: See Video Here!
According to Peter Ferrara, general counsel of Americans for Tax Reform and a Wall Street Journal contributor, Obama is reversing Reagan’s policies. “As a result, I predicted that Obamanomics would have the opposite results of Reaganomics. That prediction seems to be on track,” Ferrara said.
The video, “The Ronald Reagan Legacy,” discloses that Reagan pushed through an extensive four-point economic recovery plan that completely halted the worst slowdown since the Great Depression.
First, Reagan cut tax rates to restore incentives for economic growth.
Second, he implemented spending reductions, including a $31 billion cut in 1981, close to 5 percent of the federal budget.
Third, the president put into place an anti-inflation monetary policy, which restrained money supply growth compared to demand, to maintain a stronger, more stable dollar value.
And finally, he issued an executive order for deregulation, which saved consumers an estimated $100 billion per year in lower prices.
“Reagan understood there is a profound difference between tax rates and tax revenues,” said former Congressman Jack Kemp. “The lower rate led to more economic activity — the bigger the economy grew, the more the revenue base grew,” he said.
The video also uncovers Reagan’s secret plan to kick start any economy and includes interviews with former Reagan White House staffers.
Reagan’s Secret Recovery Plan: See Video Here!
Former White House Director of Public Liaison Linda Chavez said, “He understood what made American capitalism work. He understood that individuals making their own private decisions on how to control their own lives was what makes the free market work — and he understood that the free market was far better than government bureaucracy in controlling the economy.”
Reagan’s economy plan was so successful that it revolutionized how many global leaders manage their country’s growth.
“The highest testimony to Reaganomics was that it is now in place in Eastern Europe and many parts of the world from Asia to, in some cases, Africa and Latin America,” said Kemp.
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