Chairman’s Message:
The TV Commercial Obama Can't Run
"It's Morning Again in America"

When Ronald Reagan became President in 1981, he faced far worse economic challenges than Barack Obama did in 2009.   Unemployment soared into double digits with a peak of 10.8%, while we suffered roaring double-digit and inflation and interest rates.  The consumer price index registered a cumulative 25% increase for 1979 and 1980.

Voters then faced a clear choice on economic policy. Democrats at the time argued that inflation was so much a part of the American economy that we could not afford to stop it without triggering an economic collapse.

In contrast, Ronald Reagan promised a four-point economic program to reverse the slow motion deterioration of the American economy:

1. Cut tax rates to restore incentives for economic growth - reducing the top income tax rate from 70% to 50% and a 25% across-the-board reduction in income tax rates for everyone; 
   
   
2. Spending reductions - amounting to a 5% cut in the Federal budget in 1981;
   
   
3.  Maintaining a stronger, more stable dollar with an anti-inflation monetary policy restraining money supply growth;
   
   
4. Deregulation, saving consumers an estimated $100 billion per year in lower prices.

By 1984 Reagan's approach's success was convincing enough that he ran for reelection with a theme of "It's Morning Again in America."  This campaign message was nicely summarized in this television commercial:  

In fact the Reagan economic recovery was convincing enough that 49 out of 50 states voted for his reelection, including even Maryland.

Compare the Reagan economic results, with those produced by the Obama Administration and the Congressional Democrats.  They chose the exact opposite set of policies, with dismal results.

Instead of reducing tax rates, President Obama is committed to raising the top tax rates.  As already enacted into current law, in 2013 the top two income tax rates will rise by nearly 20%.  Democrats are even proposing tax increases, which, if enacted, would hike the top Federal income tax rate to 58%.  That is more than twice the top rate of 28% when Ronald Reagan left office in 1989.

Spending has soared to unprecedented levels relative to the size of the economy, with $3.7 trillion added to the debt.  Regulation has increased.

So whose set of policies worked - Reagan or Obama? 
You be the judge:

• "Employers Added 54,000 Jobs in May, Fewest In 8 Months; Unemployment Rate Rose To 9.1 Pct." (The Associated Press, 6/3/11)

• Since President Obama's $831 Billion Stimulus Bill Passed the Unemployment Rate Has Increased From 8.2 Percent To 9.1 Percent. (Bureau of Labor Statistics, BLS.gov, Accessed 6/3/11)

• The Average Duration Of Unemployment Increased To A Record 39.7 Weeks. (Bureau of Labor Statistics, BLS.gov, Accessed 6/3/11)

• Washington Post-ABC News Poll: "Americans' Disapproval of How [Obama] Is Handling the Nation's Economy and the Deficit Has Reached New Highs." "The public opinion boost President Obama received after the killing of Osama bin Laden has dissipated, and Americans' disapproval of how he is handling the nation's economy and the deficit has reached new highs, according to a new Washington Post-ABC News poll."(Dan Balz and Jon Cohen, "Obama Loses Bin Laden Bounce; Romney on the Move among GOP Contenders," The Washington Post, 6/7/11)

• Washington Post-ABC News Poll: Nine In 10 Americans "Rate The Economy In Negative Terms And Six In 10 "Say The Economy Has Not Started To Recover." "By 2 to 1, Americans say the country is pretty seriously on the wrong track, and nine in 10 continue to rate the economy in negative terms. Nearly six in 10 say the economy has not started to recover, regardless of what official statistics may say, and most of those who say it has improved rate the recovery as weak." (Dan Balz and Jon Cohen, "Obama Loses Bin Laden Bounce; Romney on the Move among GOP Contenders," The Washington Post, 6/7/11)

As the campaign message for Team Obama takes shape, rather than being able to trumpet economic progress, instead they look for scapegoats to blame for their failures.  Democrats are squandering the country's future instead of relying economic strategies already proven to work.  So next year perhaps Republicans need to revive another one of our past successful campaign messages, "Had Enough?"

Mark Uncapher
Montgomery County Republican Chairman