Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it. -Ronald Reagan
I was half way through college during the “Crater” administration. Inflation was off the hook, I mean off the hook, folks were syphoning oil out of peoples cars, gas lines took hours and they had odd and even days to go “fill er up”. Iran just kidnapped us . No one really talks about the prime rate anymore but it hit a record at 21.5%. You could get a mortgage if you wanted, but you had to pay around 13%.
A few years later China and Russia messed with us, but backed off when the Gipper had a come to Jesus meeting with them. Interest rates and inflation collapsed, jobs and the economy exploded to the upside and the greatest bull market in history started.
Reagan had a profound effect on me as a young man. I was an ideologue and a liberal in college. I had long hair and an earring and played in a band.I had missed the 60’s by a decade, but my thoughts and beliefs were deeply rooted in that period. I was pissed that I missed Woodstock, but listened to the album six hundred times.
I wanted to help the helpless and even thought about joining the Peace Corp at one point. I ended up on Wall Street in 1982 and had the chance to watch from the front row how things get fixed socially and economically. I soon learned under Reagan that giving someone a hand up worked much better than giving them a hand out. I learned that government is run by broken men that like to spend other people’s money and that the best way to succeed as an individual or a company is to have government as far away as possible.
Happy Birthday Ronnie, and thanks.