Malaise

In The Reagan Years at ushistory.org we read:

Americans were fed up.

In 1980, confidence in the American economy and government hit rock bottom. Looking for a change and the promise of a better future, voters turned to Ronald Reagan for answers.

His message was clear. Government has become too big... Taxes are insanely high... Military spending should be increased... Morality and character need to be reemphasized... It's time to feel good about being an American again.

Reagan's election brought a dramatic change to the federal government.

Yes, Reagan's election brought a dramatic change to the federal government. But don't forget: Americans were fed up, and ready for change.

Why? In a word, malaise.

So when you hear people blaming our economic troubles on policy "since Reagan" or "since the 1980s" you might want to think twice about that. Yes, our economy headed off in a different direction in the 1980s. But it was an attempt to solve a problem.

Did it work? Hell no. But that doesn't mean Reaganomics created the problem. The problem just found a different outlet since the 1980s -- unemployment, rather than inflation. But the problem that existed since the 1960s continued into the 1980s, and continues yet today.

That problem? Excessive reliance on credit.