Comparing Major Recessions

Bad government policies, including actions of the Federal Reserve, have contributed to all of our major recessions. Looking at the last three, there is an interesting difference in 1 case.

“Hoover’s” recession/depression was significantly prolonged - throughout the 1930s - by FDR and his statist “New Deal.”

“Reagan’s” recession was caused by Carter’s liberal policies, but was short-lived. Why?

He reduced spending, deregulated industries, cut taxes and implemented other pro-free market policies.

Result: strong economic growth, reduced unemployment and reduced deficit.

“Bush’s” recession was caused most by the Federal Reserve, Fannie and Freddie and other government regulations. While it is officially over, recession conditions are being significantly prolonged by Obama with massive spending, regulatory expansion, control of industries and other anti-free market policies - much like FDR.

Result: belabored growth, sustained high unemployment and increased deficit.

In fact, this is already our worst recovery in the past 70 years - since FDR!