Sunday, May 27, 2012

The Reagan Memo, Economic advice written in 1980

Many people don't realize that our greatest economic president's degree, was in Economics.

Excerpt: One lesson is how similar current economic problems are to those Reagan faced when he took office. The late-1970s were also a time of great economic anxiety fed by runaway government. Spending was out of control, taxes were too high, regulation too burdensome and energy too expensive. The big difference is that inflation today is lower, though food and energy prices have climbed fast until recently.

But the cause for optimism is that if the problems are similar, the solutions can also be similar. The memo is a tacit rebuttal of the White House talking point that today's Republicans are more radical than Reagan. Today's policy debates are remarkably similar to those 32 years ago. article here

The entire memo is here. Advice for a New President
Bullet Points:
You have identified in the campaign the key issues and lines of policy necessary to restore hope and confidence in a better economic future:

• Reestablish stability in the purchasing power of the dollar.

• Achieve a widely-shared prosperity through real growth in jobs, investment, and productivity.

• Devote the resources needed for a strong defense, and accomplish the goal of releasing the creative forces of entrepreneurship, management, and labor by:

• Restraining government spending.

• Reducing the burden of taxation and regulation.

• Conducting monetary policy in a steady manner, directed toward eliminating inflation.

This amounts to emphasis on fundamentals for the full four years, as the key to a flourishing economy.

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