I remember the days of Reagan/Thatcher as upbeat and positive times, whatever the cause. We felt the country was moving forward past Vietnam, the Iranian hostage situation, the high inflation of the ’70’s and the USSR was crumbling. That positive attitude is now lacking.It is lacking because we have little confidence in our leaders including congress and the President.. We are disgusted with the corruption of money in politics. We are disgusted because there were serious crimes committed causing the housing crisis that led to the meltdown in 2008 and no one was held accountable and sent to prison.

Instead of these culprits being punished they were bailed out by our government and given raises. We are recognizing that the millennial generation, our children,  may be the first generation since at least World War II to face the prospect that they live in a country that will not be the wealthiest financially, the strongest militarily, and the most respected globally.

Looking back at the Thatcher/Reagan era the future seemed brighter then.

Public Confidence

On comparing this economic downturn to the one when Reagan was President, I would like to make two points.

1. The country is more sensitive to debt as a percent of GDP in this recession. There are those who will argue we just can’t afford to spend this time. We are stretched to the limit.

2. We are fighting a greater lack of confidence this time. During Reagan’s time. Unemployment rose and GDP fell, but on whole there was not a sudden drop of the net worth of households. Home values did not decline as much and as fast. The stock market did not decline as swiftly. There was no sense we were in or headed for a depression.

As a result of this fall in confidence, it is necessary to work on a plan to address the deficit issue. The plan should not be implemented immediately; however, it should be developed for confidence sake. Confidence matters. Read More: