Economic growth is not something that we are ever likely to have the hands-on control over. That's one fact you hear constantly from both parties on the political aisle in Washington D.C. However, it is also the reality that the American people, through their elected representatives in the U.S. House and Senate, will be the ones who determine what kind of economic growth occurs in our nation. If you are one of those people who think the government is completely out of control, perhaps it would be a good time to read this article and see what some of the worst economic policies our nation has experienced under some very popular U.S. Presidents. You might not like what you read; however, it is always important to see the bigger picture.
The first and probably the worst economic policy that our country has experienced under some very popular U.S. Presidents is the advent of the Great Depression. During the first three months of the New Deal, the unemployment rate reached up to 25%. The stock market crash and other economic factors combined to lead to a devastating loss of economic growth for the United States. In fact, it was not until Franklin Delano Roosevelt was re-elected as President of the United States in February 1930 that economic growth was seen again. Since that time, four more Presidents have overseen an economic recovery and some say it is still not anywhere near what would be called ideal economic growth.
Another fact that most people do not know about economic growth in the United States is that the vast majority of Presidents since World War II has approved large amounts of federal stimulus money in order to help us get our economy back on track. This has enabled us to build up or spend on a number of different projects and has helped us to return to growth, albeit at a much slower pace than we would like. In fact, economic growth is presently below the level of what it would take to have the U.S. deficit stay at current levels, as opposed to the current level of 2 trillion dollars. Still, this is a good omen for the American economy.
Even though economic growth is a key issue, there is a lot of focus on the direction of the U.S. economy in general. In fact, President Obama recently noted that, “We are creating the most incredible opportunities in the history of the American economy.” Many economists agree with this assessment. While no single explanation can explain how the economy got from where it is now, one common thread is that we have become a less cluttered economy, with better distribution of wealth. Fewer households are living in “overflow” — meaning they have too much income or assets to handle their debt, and even fewer families are living in “liquidity” — meaning they have enough money to properly invest in things like savings accounts and bonds.
Some economists argue that the best way to judge economic growth under us Presidents is to look at how they handled inflation. The . . . . . . Federal Reserve has been increasing interest rates to keep inflation at current levels, which have been historically low. If interest rates were lower, then real estate values would likely be higher. As it is, home values are still declining. This is another example of economic performance under us Presidents going back to the days of Franklin Delano Roosevelt.
Not only is economic growth under us Presidents' leadership evident in the rising stock market, but also the rising value of the dollar. We are not the first nation to feel the effects of inflation, but we are currently experiencing one of the fastest inflation rates in the world. For this reason, the dollar has strengthened against all other currencies, as well as commodities like oil and gold. It is an indication of our economic strength.
One of the things the United States has done to promote economic growth is to make the tax system simpler, more efficient and less harmful to the economy. This has been a result of our successful implementation of economic policies, including cutting taxes and regulations on businesses. While some may question the need for such regulation, as after all government regulation is always harmful to free markets, the fact remains that business needs to be regulated just as much as people do. It is not possible to have free markets with no regulations. Otherwise, there will be no one to pay the taxes needed to support economic growth and to fund these activities. Cutting regulations is a very positive step towards improving the economic situation.
The economic growth under us Presidents is clearly a sign that our country is running efficiently and economically. It is the economic policies of the United States that have led to this situation. We are fortunate indeed and proud of the work done by our American President.