In 2000, I had no idea what could save the US economy, and why anyone would want to be POTUS. The entire developed world was an economic train wreck Greenspan had helped to create by raising FEDFUNDS Rate quarterly for several times in a rowto cool off an overcooked USA stock market, caused largely by hopes and dreams of future price appreciation, and lying accounting practices. After GWB was elected Greenspan turned on a dime, lowering interest rates about the same as he raised them prior to an election. I spoke with several Economist and Int’l Finance colleagues if they thought they thought Greenspan had created an environment of fear by raising rates dramatically, when I knew none of my former colleagues at the IMF thought the actions would help the USA resolve their internal issues. But many feared the USA as the sole superpower, and felt their interests would be better served by a stronger, more united European Community, with hopefully a stronger Currency Union, leading the Euro to be a viable alternative to the $US, especially since Greenspan and Crew were piloting the US economy like a crew of drunken cowboys.
Bush did enter office with some dramatic challenges, but I spent far too many years in WDC to say Gore would have been a better President than Bush, but we usually have poor choices for the Presidential Election. Reagan was the good choice for POTUS, but I was there, people today have a serious misperception of what Reagan actually was and did, and seem to believe he was and what he did. Paul Volcker’s FED actions or the fact the oil prices collapsed played much stronger roles in the US economic recovery in the 1980’s than Reagan’s tax cut and subsequent tax hikes did. What is called Reaganomics did not play a significant role in US economic recovery of the 1980s.
Reagan had two powerful strengths that helped the USA during his Presidential term: The rest of the world really thought he was crazy and might do something really crazy and destroy civilisation, and most important, he was ready, willing and able to compromise with Democrats to achieve his goal. John Boehner should immediately resign his post as House Speaker, so Congress can elect a Speaker of the house that will no longer shame a dead man by refusing to negotiate or compromise, instead demanding failed preconditions be accepted before negotiations can begin. The current House Republican group is negotiating more like Kim Jong-Il than Ronald Reagan, and libelling Reagan by their domestic inaction and claiming the mantle of Reagan.