The American stagflation started with Ford but continued with Ronald Reagan. His Reaganonics was good for the wealthy but his trickle down theory never trickled down. During the Reagan years payroll taxes increased and have not receded. Reagan reduced taxes for the wealthiest and raised deficit spending to its highest ever (at the time). Bush has surpassed him and if McCain wins he will surpass Bush. Reagan ended the Oil Windfall Profits Taxes that the republicans just rejected AGAIN this week.

Reagan promised less spending and he cut back spending on social programs (children are STILL suffereing because of his cuts; no after school programs, etc). He did cut back on military spending because the Cold War ended but he increased spending for Cold War defense which was more than he saved by cutting the military budget.

After 10 years the results (higher than normal deficits) started to reveal themselves in ways like Black Monday in October 1987.

We were just starting to recover when George W happened.

That’s why I say the republicans are responsible for our sinking economy for the past 27 years.

Paulette

At this point, it’s a positive feedback loop that we’re all going to be caught in… I just hope there’s someone/something to break it.

And the Feds *can’t* do it without mucking it all up worse than we can imagine.