Dynamical System for Economic Growth

Wolfram MathWorld:

Dynamical system — A means of describing how one state develops into another state over the course of time.

Barack Obama

Phillips curve from 2008 through 2011 (top) and related misery index from January 2009 through March 2012 (bottom) with linear regression:

\mathrm{Misery} = 0.10 \times \mathrm{Month} + 8.73

More misery under Obama helps explain why Americans say the economy is in recession.

Ronald Reagan

Not only did misery decrease during the same amount of time under Reagan. The rate of decrease was twice the rate of Obama’s increase — despite worse initial conditions at the beginning of Reagan’s term:

\mathrm{Misery} = -0.20 \times \mathrm{Month} + 19.27

Unemployment also fell another 2.1% in 1984, the last year of Reagan’s first term.

And middle-class families in America made more money:

We have not yet begun to succeed

Join me to release the boom we need through 4% growth in the economy.

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15 thoughts on “Dynamical System for Economic Growth

  1. Economics genius Regan was Reagan’s lead surprise! The real name for the genius was Reganomics, but everyone called it Reaganomics! I remember the Democrats laughing at the “STUPID” plan! They did not publish a retraction of their “stupid” comment!!!

  2. To take just one example of lost opportunity, recent research has found that college graduates entering into the workforce during a recession will earn less than those entering in non-recessionary environments. Surprisingly, the findings also suggest that the income loss is not temporary: lifetime earnings and occupational paths are affected as well. According to Kahn (2009) “taken as a whole, the results suggest that the labor market consequences of graduating from college in a bad economy are large, negative, and persistent.” She finds an initial wage loss of 6% to 7% for each 1 percentage-point increase in the unemployment rate, and even after 15 years, the wage loss is still 2.5%.

    • Dear Sir or Madam (gold price),

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    • I graduated in 1969. A VW bug was $1,500.00. A corvette with nothing on it was $2,500.00. A house in West Virginia was $10,000 to $15,000.00. Minimum wage was $1.60! Everything has went up 10 times what it was in 1969 except minimum wage. If minimum wage went up the same it would be $16.00 an hour! It is only half that now!!!

  3. In an environment where inflation is prevalent, people tend to cut out things like leisure spending. They also budget more, spend less on things they usually indulge in, and start saving more money than they did. As people and businesses start finding ways to cut costs and derail unneeded expenditures, the GDP begins to decline. Then, unemployment rates will rise because companies start laying off workers to cut more costs, because consumers are not spending like they were. It is these combined factors that manage to drive the economy into a state of recession.

  4. We have to look at unemployment, which is still rising. We know from past recessions, however, that unemployment often keeps rising even after a recession reaches its peak and the economy starts to turn around.

  5. Why is that? Employers are reluctant to lay people off when the economy turns bad. For large companies, it can take months to put together a layoff plan. Companies are even more reluctant to hire new workers until they are sure the economy are well into the expansion phase of the business cycle . During the 2008 financial crisis , the recession actually started in the first quarter of 2008, when GDP fell 1.8% . The unemployment rate didn’t reach 5.5% until May 2008. It reached its peak of 10.2% in October 2009, after the recession had ended. In the 2001 recession, unemployment went from 5.6% in 2002 to 6% in 2003, even though the recession ended in 2002.

  6. We have to look at unemployment, which is still rising. We know from past recessions, however, that unemployment often keeps rising even after a recession reaches its peak and the economy starts to turn around.

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