That's not how I remember the Reagan years. His time in office was not characterized by inflation and stagnation. Inflation was high going back to the end of the VN war in 72. If was bad under Nixon, worse under Ford, and worse still under Carter. That's the hand Reagan was dealt. His Fed chairman was Paul Volker, a hero of mine. Volker had to kill inflation because it was killing the savings of all americans. He raised interest rates till business could not expand, they laid off workers, he caused a real bad recession in 81-82, and it worked. He broke the back of inflation for the next 20 years. The US shuttered its steel industry in the north, and the economy had to transform itself. We climbed out of the recession which bottomed in 82. This ushered in good economic growth with low inflation leading to the stock market bubble in 1987, which crashed in Oct. Some of that was technical, as it was the first crash with computer trading in effect, and circuit breakers were added to protect the market from the computers, ending computer trading if the market is down 10% in one day.
I agree the increase in defense spending was not a good idea. Russia was much weaker than some thought, and we did not need the defense build up. Paul Wolfowitz (yes, the neocon in the Bush II admin) was a part of CIA Team B that produced an alternative view from the regular CIA, indicating that Russia was stronger than standard CIA reports indicated, and that was used to justify the defense spending increase. When Russia collapsed on its on in 1989 (the US defense buildup had nothing to do with it, they could not supply bread and meat to their people in grocery stores), people saw that the Team B report was the incorrect one (funny how the Military Industrial Complex gets those lying reports they need to justify spending more on planes, ships and tanks).
Reagan did some good and some bad, but more good in my book. I voted for him twice. Breaking the back of inflation was a HUGE accomplishment where 3 previous presidents had all failed. It took some stones to induce and endure a deep recession, but it ultimately was for the overall good of the country. Sometimes you have to take your medicine, and that was a time. Now is another time, but it seems nobody in govt. has stones anymore and they are just looking for a bailout. Difference is this housing bubble combined with terrible subprime lending practices and artificially low (let's get Bush re-elected) interest rates (when there was no recession in 2003-2004) have created a pretty big problem, and we may have broken Humpty Dumpty. We'll see, but it's not looking good so far. Federal Reserve committed to a $200 Billion collateral swap with some big banks, and after a one day 400 pt. Dow rally, back down, saying its still not enough!

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