Ronald Reagan, 1981-1989
Ronald Reagan ran for President calling for a balance budget, fiscal responsibility, smaller government, and reduced federal spending. He failed to initiate any of those policies and accomplished none of those goals, even though the Republicans controlled the U.S. Senate his first six years in office.
When Reagan left office after 8 years, he was not only the biggest spender of all Presidents before him, but he was also the record holder of deficit spending, by far. Reagan’s pronouncements about being a fiscal conservative turned out to be nothing more than an extension of his acting profession.
The facts show just how reckless Reagan was with the American people's money. He never had the courage nor character to submit one balanced budget to Congress in the 8 years he served. No President can balance the budget and cut unnecessary spending if he does not show leadership on the subject in dealing with Congress. The range of the deficits and increase in the national debt on Reagan’s watch was unprecedented at the time and reversed the history of all previous Presidents.
On Reagan’s watch the U.S. moved from being the world's largest international creditor, to the worlds largest debtor nation. Deregulation of the Savings and Loan industry caused their collapse, resulting in a federal bail out that cost the taxpayers $100 billion Dollars. Increase in the national debt during Reagan’s two terms was also greater than all the Presidents before him.
George H.W. Bush, 1989-1993
President George Bush was Reagan’s Vice President for 8 years. He ran against Reagan in the primaries of 1980 and called Reagan’s economic pronouncements "voodoo economics". Reagan’s deed in office proved Bush was right. However, like Reagan, Bush never developed a true economic policy. His famous pledge of “read my lips, no new taxes” was to satisfy his base. Many believe breaking that pledge cost him reelection. However unemployment went up during his term and he failed to address the massive deficits of Reagan, continued to add to the national debt with deficit spending and failed to balance the budget during his term in office. His four years of deficit spending was in fact greater than any 4 year term of Reagan.
Job creation during Bush’s term was the weakest since Eisenhower’s last term in office 1957-1961. Neither Reagan nor Bush had a real economic policy. They had a tax policy for the most wealthy that depended on the theory of “trickle down economics". Voodoo economics took center stage in both administrations. Bush, to his credit, weakly tried to change that late in his administration, but the devastating scope of fiscal irresponsibility for 12 straight years could not save his Presidency.
The below numbers will show just how reckless Reagan-Bush were with tax payers money. Any notion of either one being fiscal conservatives is pure myth. And if anyone thinks that the massive deficits and national debt they created were necessary to get our economy in good shape, they are living a fairytale. President Clinton’s economic policies and results proved that.
Budget Deficit or Surplus
Reagan
1982 -----$128 Billion Deficit
1983 -----207.8 Billion Deficit
1984 -----185.4 Billion Deficit
1985 ------212.3 Billion Deficit
1986 ------221.2 Billion Deficit
1987-------149.7 Billion Deficit
1988-------155.2 Billion Deficit
1989 -------152.5 Billion Deficit
______________________
Totals---$ 1.412 Trillion Deficit
Bush
1990---- $221 Billion Deficit
1991---- 269.2 Billion Deficit
1992---- 290.3 Billion Deficit
1993----- 255.1 Billion Deficit
______________________
Totals----$1.035 Trillion Deficit
National Debt
When Reagan Left Office -------$2,857,430 Trillion
When Reagan Took Office ----------997,855 Billion
_____________________________________
Total increase of debt: $1,859,575 Trillion or 186%
When Bush left Office--------- $4,411,488 Trillion
When Bush took Office ---------2,857,430 Trillion
____________________________________
Total Increase of debt: $1,554,058 Trillion or 54%
Spending vs. Previous Administration
Reagan 1st. Term -------$3,352.4 Trillion
Carter 1st. Term--------2,232.8 Trillion
______________________________
Increase of $1,119.6 Trillion or 50%
Reagan 2nd. Term------$4,202.8 Trillion
Reagan 1st. Term-------3,352.4 Trillion
______________________________
Increase of $849.4 Billion or 25%
Bush 1st. Term------$5,368.5 Trillion
Reagan Last term ----4,202.8 Trillion
___________________________
Increase of $1,162.7 Trillion or 27.6%
Public Debt
When Reagan Left Office 1989 $2,190.7 Trillion
When Reagan Took Office 1981 789.4 Billion
Increase of 177% -----------------------$1,401.3 Trillion
When Bush Left Office 1993 $3,248.4 Trillion
When Bush Took Office 1989 2,190.7 Trillion
Increase of 48%------------------------$1057.7 Billion
Update: original data was inaccurate, newly posted information show correct totals
Public Debt as Percentage of GDP
When Reagan Left Office 40.6%
When Bush Left Office 49.4%
Job Creation
Reagan 1st Term 5,322,000 Million
Reagan 2nd Term 10,780,000 Million
Total Jobs Created 16,102,000 Million
Bush Term 2,592,000 Million
Note: Last 3 digits shown as zero’s.
Unemployment
The unemployment rate when Reagan took office in January 1981 was 7.5% at months end. When Reagan left office in 1989, it stood at 5.4%, a decrease of 2.1% while he was in office. The unemployment rate went up to 10.8% on his watch.
The unemployment rate when Bush took office in January 1993 was 5.4%. When he left office 4 years later, it was 7.3%, an increase of 1.9%. The unemployment rate went up to 7.8% during Bush’s term in office.
After looking at the numbers, one can tell both Reagan and Bush had no real economic policy to deal with the economy. During their 12 straight years at the helm, the yearly deficits fluctuated back and forth with no real steady movement downward. The same goes with the national debt. When Part III is examined, you will find all of those negative items moved in a positive downward position consistently on President Clinton’s watch. Stay tuned.
Information shown taken from Congressional Budget Office, U.S. Department of Labor, Bureau of Labor Statistics, Whitehouse.gov and Treasury Department.
