America Dragged Down

The economy under Reagan, say the pundits, was too hot not to cool down. In fact, the economy did not run out of fuel. What happened was the arrival of the Bush brigade, armed with potent fire extinguishers.

WHEN George Bush took the oath of office in January 1989, the U.S. economy was growing at a 3.6 per cent real rate, well into the seventh straight year of a peacetime expansion that many thought might go on forever. Prudential-Bache’s chief economist, Ed Yardeni, was forecasting six to 12 more years of expansion without recession.

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Warren T. Brookes

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Ronald Reagan

Economy

The economy under Reagan, say the pundits, was too hot not to cool down. In fact, the economy did not run out of fuel. What happened was the arrival of the Bush brigade, armed with potent fire extinguishers.

WHEN George Bush took the oath of office in January 1989, the U.S. economy was growing at a 3.6 per cent real rate, well into the seventh straight year of a peacetime expansion that many thought might go on forever. Prudential-Bache’s chief economist, Ed Yardeni, was forecasting six to 12 more years of expansion without recession.