On comparing this economic downturn to the one when Reagan was President, I would like to make two points.
1. The country is more sensitive to debt as a percent of GDP in this recession. There are those who will argue we just can't afford to spend this time. We are stretched to the limit.
2. We are fighting a greater lack of confidence this time. During Reagan's time. Unemployment rose and GDP fell, but on whole there was not a sudden drop of the net worth of households. Home values did not decline as much and as fast. The stock market did not decline as swiftly. There was no sense we were in or headed for a depression.
As a result of this fall in confidence, it is necessary to work on a plan to address the deficit issue. The plan should not be implemented immediately; however, it should be developed for confidence sake. Confidence matters. Read More: http://goo.gl/SGn4j