In many respects, the obama recession and the reagan recession are very similar. however, the ideology and policies of president
reagan and president obama were very different. what was the main difference between these two presidents on the proper role of government in promoting or stimulating a recovery from a recession
Reagan is known for saying, "<span>Government is not the solution to our problem, government is the problem." As president, Ronald Reagan sought to reduce the size and government and get government out of the business of trying to boost the economy. He believed businesses themselves were in a better position to do that.
During the Obama presidency, government measures were seen as a way to stimulate the economy and American manufacturing and purchasing. In 2009, President Obama signed into law the </span>Car Allowance Rebate System (CARS), commonly known as "Cash for Clunkers." It was an effort to spur consumers to trade in old cars to buy newer, more fuel-efficient vehicles. In addition, the US Treasury used billions of dollars to keep General Motors operational when it was facing bankruptcy, under the Troubled Assets Relief Program (TARP). TARP actually was created in 2008 at the end of the George W. Bush administration to address the subprime mortgage crisis in the housing market. Under the Obama administration, it was also used to address the General Motors situation to save that company and prevent greater damage to the national economy.
