In the past 45 years when President Reagan took office in 1981, three GOP Presidents cut taxes for the wealthy and American Corporations, Reagan, Bush 43 and Trump. It was called an economic policy that would create jobs, balance the budget, increase federal revenue and be a boom to business increase in plant and equipment that would grow the economy, production and everything economical. And all through those 45 years the media enabled that economic assumption even though it never took place on their watch. Lets examine and expose the MYTHS:
Job Creation: President Clinton created more net jobs in only 8 years (22.7 million) than Reagan, Bush 43 and Trump (14.7 million) did in the 20 years they served. And Clinton raised taxes on those same folks who benefited from the Reagan, Bush 43 and Trump's tax cuts. Clinton raised the Corporate rate from 34% to 36% and the top rate from 28% to 36%. And during that same 45 year period, Clinton, Obama and Biden created a total of 50 million net jobs in the 20 years they served compared to the 17.2 million net jobs created by Reagan, Bush 41, Bush 43 and Trump in the 24 years they served. Clinton, Obama and Biden in other words had an economic policy that created jobs, while the GOP had an economic ideology and not a policy that favored the wealthy and corporations. Those three GOP President said the tax cuts would allow business to invest those savings in their business which would create an explosion in job creation. Trump said he would create 25 million jobs when elected in 2016. Yeah, right, his administration lost 2.7 million jobs.
The Reagan, Bush 43 and Trump administration gave the country and its people an economic recession despite the tax cuts. No economic recession took place on the watch of Clinton, Obama or Biden. Tax cuts for the wealthy and Corporations are no economic policy, it is a flawed ideology. Trump cut the Corporate by 14% from 35% down to 21%. Why would business gamble on increasing business when they could put the 14% savings in a bank or invest in stocks for a handsome return that would not create one job.
The worst bank failures during that 45 year period took place on Reagan's watch when the Savings and Loan Industry collapsed and on Bush 43 watch in 2008 when the Wall Street Banks collapsed in Bush's great recession. Both cost the federal government trillions of dollars. Those corporations and the CEO's that managed them received the benefits of the tax cuts to no avail. The Reagan and Bush administration also deregulated those industries. There were no bank failures on any Democrat's watch during that same period.
None of the 4 GOP Presidents in those 45 years balanced one federal budget or left office with a smaller deficit than when they took office. (fiscal years). Clinton reduced federal deficits every year his first 4 years and then balanced the budget every year his last 4 years in office. His administration also paid down $400 billion on the national debt. The GOP paid down nothing. Obama left office with a smaller deficit than when he took office and if the CBO's prediction of a $1.8 trillion deficit for Biden's last fiscal year which ends 9/30/25 he will also have a smaller deficit than when he took office. Those GOP tax cuts were supposed to raise more federal revenue that would reduce federal deficits and balance the budgets but never did.
Ronald Reagan was the only GOP President of the 4 that left office with a lower unemployment rate than when he took office. All three democratic Presidents left office with a lower unemployment rate than when they took office. The largest single year federal budget deficits took place on Trump's watch and hit $3.1 trillion in fiscal year 2020 and $2.7 trillion in fiscal year ending 9/30/21. The largest increases in federal spending took place on Reagan's watch 75% and Bush 43 watch 61%. The smallest took place on Clinton's watch 28% and Obama's watch 25%.
Real Plant and Equipment Investment by business average annual increase was up 3.3% under Reagan and 9.4% under Clinton. Those GOP tax cuts were supposed to be a boom for business investments, instead it was a boom with Clinton's tax increases because he had an economic policy. The highest sustained unemployment rate took place on Reagan's watch when the rate stayed at over 10% for 10 straight months from September 1982 to June 1983. No Democratic administration even came close to those numbers for unemployment.
The GOP tax cuts for those who need them the least has proven over the years to be a MYTH in delivering the economic benefits they claim for the country and its people. And now with Trump and his party still pushing those tax cuts once again with the enabling media's help, the public is once again being misled into another recession and a regression in the nation's economic and fiscal health. The facts and the truth are out there. The GOP tax cuts are based on ideology and not economic policy and therefore have failed. Democrats govern by economic policy that addresses the issues and that is why their administrations have governed more efficiently and effective.
During the last 45 years of governing, the GOP's future was a continuation of their failed past. And now, with Trump's second term in progress, the future resembles the failed past.
This commentary written by Joe Lorio
