Why has President Obama been continuing implementing economic policies that have historically failed?

Question

Stimulus plans and government work projects have been proven to impede economic growth, such examples are Japan's recent long recession, FDR's New Deal, Mexico's economy in the 70s and 80s, etc. These polices have impeded economic growth and recessions lasted between 10 to 20 years because of them, yet Obama still insists that these policies work when they have actually been proven to not work.

However, reducing government spending and lowering taxes, have proven to be the best source of economic growth. A good example of this is in 1920, Harding inherited an economy with 13% unemployment and implemented tax cuts and reductions in government spending by 50%. The end result was unemployment went down to 7% in the next year, and eventually down to 2% for the following year.

Why does Obama not learn from history, and instead sticks with policies that only impede economic growth?

Nicholas · Accepted Answer

Because Obama's a Commie.

ocularnervosa · Answer

"Stimulus plans and government work projects have been proven to impede economic growth"
And this statement is based upon what. The New Deal ended the depression by 1934, it would have ended sooner if Hoover had done something, anything between 1929 and 1932. Warren G Harding inherited a post war economy that is traditionally low due to returning service men. Knowing this Truman created massive work projects in 1946 and staved off a post war depression. And Clinton had higher taxes, a 3,9% unemployment rate and a budget surplus. Then came bush the lessor with his tax cuts and turned the surplus into a deficit, the unemployment rate doubled and the stock market crashed.

Real world numbers are quite different than conservative fuzzy history numbers.

Anonymous · Answer

these plans have nothing to do with stimulating the economy. If they really want to fairly stimulate the Economy they could simply temporarily cut the employer tax contributions and the income taxes everyone pays by lets say 5% across the board. This would NOT be selective and GIVE EVERY BUSINESS AND EMPLOYEE STIMULATION.

But these stimulus bills are more about getting specific programs going that they normally would not be able to get started. Sure give a Billion to roads a billion to schools but use 250 billion to rev. up Environmental agencies or some other idiotic bureaucracies. Throw a few billion at pointless wind turbines that are causing nothing but law suites (people don't to see them, greenies say they kill birds and so on).

Stimulus bills are a JOKE and a way to expand Government and exist bureaucracies.

Erika · Answer

How is Obama's financial regulations not "Bush on steroids"(because of the fact thats curiously the DNC conversing factors word of the day)? What precisely has Obama completed in any different case than Bush different than to screw issues up lots worse? Bush a minimum of had exposure to mind-blowing economists like Friedman while his dad replaced into vice chairman. particular, he did not seem to benefit lots yet this is greater suitable than Obama can say.

tim · Answer

Darn you Democrats don't you know you  have to do the same things that caused the problem in order to fix it.

? · Answer

Maybe because when you're in debt you shouldn't lower your income.

Lucky #7 · Answer

he's going down in history as a historic failure. it seems kind of appropriate, if you ask me...

? · Answer

Obama is an idiot.

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Why has President Obama been continuing implementing economic policies that have historically failed?

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