When you argue politics, its well to remember from time to time that the person you argue with could be right. You should always be willing to learn in argumentation. I myself learned something from a tea party member during an argument over gay marriage. He said that the entire marriage problem was a result of government interfering in a religious topic, and it should get out of the business of marriage all together. His argument was right, and I told him so, and I dropped my argument. And my argument on abortion impressed him, and he told me I was right, and he dropped his argument.I'm not sure you and I will ever agree PG - you are too focused on a very narrow aspect of the economy and I prefer to look at the big picture.
First, I think you are confusing Reagans policies with supply side stimulus - there is a difference. Subsidizing road construction or development of a HUD project is a supply side stimulus - but lowering capital gains taxes to make it cheaper to invest new capital is supply side economics ala Reagan. Reagan's focus was on business investment incentives.
Second, the investment potential I'm referring to is the $Trillions parked offshore - that is waiting for a clear and specific tax policy - given the need to raise taxes to pay for the massive deficits. If Reagan was President he would be focused on bringing those funds home to restart our manufacturing base.
Third, the Fed just guaranteed interest rates will remain low - did you miss the speech? Printing money to buy Treasuries from the banks should enable the banks to lend to small businesses who are starving for capital. The banks are still not loaning money to the small business community.
Fourth, energy prices have increased and will continue to increase given the President's domestic energy policies - we need to import less oil. The $4.00/gallon fuel is driving up the cost of everything that needs to be planted, harvested, or transported. The more money families spend on food and fuel - the less they will spend on everything else. Also, regardless of the President's wish list - electric vehicles cost too much to purchase and electric rates are also on the rise.
Fifth, aside from twisting my words we agree on what happened with the bank bailout - the needed cash and some of them were not failing - just slightly below the reserve requirements. Also, don't forget a lot of the bailout funds made their way offshore.
Six, I didn't say the Fed was a liberal organization. I do think the Fed has put downward pressure on interest rates for much too long - and now they're out of tricks.
ParticleGrl is right and seems to be more knowledgeable than either of us on the topic.