Who is to blame for the Depression that we find ourselves in? Some bloggers blame the economic stimulus program of Obama, despite it starting before he became President. Others like to point to Bush, on whose watch the big downturn started. Neither of these pat answers sounds all that great when you think about how much influence a President has on the economy, however. Does a nation this big really turn so quickly?
A little bit of analysis shows that if you have to blame policies from Washington, the best place to go is back a full generation – to Ronald Reagan. There are two distinct inflection points in both National Debt and Balance of Trade – what Democrats like Mike Dukkakis used to call the “Twin Deficits” – that clearly point to policy changes from that time.