In his crusade to reach the White House, Paul Ryan published another piece of phony history and econoomics last week. The Wisconsin Republican authored Why No One Expects a Strong Recovery:
He and his ultra-conservative cohort, Representative Jeb Hensarling (R - Texas) explain that we have to get back to Reagan's economics and that the Democrats are a disaster for the economy:
Why all the pessimism? The source appears to be a growing fear that the federal government is retreating from the free-market economic principles of the last half-century, and in particular the strong growth policies that began under Ronald Reagan. A review of the economic policies instituted by President Barack Obama and the Democratic-controlled Congress lends credibility to this concern...
...Anyone who believes the Democratic Party's recently expressed concern over the deficit should look at the relentless growth of spending on its watch. Total nondefense spending set an all-time record this year—20.2% of GDP—double federal spending as a percentage of GDP during the height of the New Deal in 1934
The problem, Mr. Ryan, is the facts.
As any fifth grader can tell you, the greatest federal budget deficit as a percentage of the GNP since World War II was the Reagan deficit. It was erased by Bill Clinton and then eclipsed by George W. Bush. It usually takes 2-3 years for a President's economic policies to take hold.
Republicans start these problems and Democrats get us out of them. Unfortunately, sometimes the Democrats need more than a year or two to fix a problem the Republicans created in eight years.
Notice that dip before 1980? That was Jimmy Carter's third year. The peak before was the height of Nixon's second term.
Notice the surplus before and through the year 2000? Yup. That was Bill Clinton.