Tag: Reagan

05/15/11

Obama’s Financial Reform : CPA

In Obama’s Financial Regulatory Reform program for the nation, a bill was passed to create an agency that would protect consumers from abusive lending practices, set rules for trade, and take steps to ensure that the failure of a couple of large banks/investment firms would cripple the economy. This agency is called the Consumer Protection Agency (CPA). In this case, Obama is tightening government control over trade and the banks to ensure that the economy doesn’t completely topple over.

Contrary to this, Reaganomics spoke of “economic freedom” and proposed an “economic Bill of Rights.” Reagan wanted to combat poverty and dismantle regulations as well as reducing taxes. Reagan did not have to deal with a failing economy the way that Obama did when he entered the presidency. Therefore their financial regulation policies were much different due to these different situations.

 

http://topics.nytimes.com/topics/reference/timestopics/subjects/c/credit_crisis/financial_regulatory_reform/index.html?scp=8&sq=government%20regulation&st=cse

05/15/11

Regulation for Regulations

On January 18, 2011, President Barack Obama signed an executive order, which allowed the government to review all federal regulations.  The regulation was put in place mostly for the businessmen in America, who weren’t so sure Obama was the right person to help fix the economy. Obama agrees that too much regulation in America is not beneficial, but he also admitted that lack of regulation is bad as well. He attributed the recent financial crisis to lack of regulation. This new order will also help the government focus more on small businesses, and can hopefully result in a more efficient economy. (Source: http://www.reuters.com/article/2011/01/18/us-obama-regulations-idUSTRE70H13W20110118)

http://www.youtube.com/watch?v=gH5ve_JFCsU

During the 1980’s President Ronald Reagan also tried to stimulate the economy. He did this by passing what was known as The Tax Reform Act of 1986. This act was created in order to simply the income tax code, expand the tax base, and get rid of tax shelters. Individual tax cuts were decreased, but corporate taxes were raised. This in turn kept the tax level about the same as it was before. However, this shifted the burden of the tax to corporate companies. Both Reagan and Obama have been seen to help the individuals more than the big businesses. While Obama is trying to help the Americans by attempting to find ways where they can succeed, Reagan is simply handing them help. He is giving them a tax cut, which requires no effort on their part. Whether this is the right thing or not lies in the mind of each and every person.