Why Do Budget Hawks Keep Invoking Reagan?

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Friday, May 07, 2010 at 3:32 pm

This morning, Texas Rep. Kevin Brady, senior House Republican on the Joint Economic Committee, wondered aloud why Democrats faced with the recent recession didn’t adopt the same policies favored by Ronald Reagan during the economic downturn nearly 30 years ago.

“President Reagan pursued pro-growth policies, including large reductions in marginal tax rates, deregulation and open trade,” Brady said, arguing that those moves “laid the foundation for two decades of prosperity.”

In contrast, Brady continued, the Obama White House has tackled the current crisis by relying largely on deficit spending — a strategy Brady called “reckless” and “clearly unsustainable.”

“Unless these excessive spending deficits and debt accumulation are quickly reversed, the United States may experience its own debt crisis,” Brady said. He was warning that the U.S. is en route to becoming the next Greece.

He didn’t mention the following: When Reagan was elected to the White House in 1980, the federal debt stood at roughly $908 billion. Eight years and several tax cuts later, it was $2.6 trillion — a leap of 186 percent.

Put another way: Reagan racked up more debt in eight years than the previous seven presidents had managed in 35 — a span that included the Korean and Vietnam wars.

Some conservatives get this. Earlier this year, Libertarian Party Executive Director Wes Benedict noted that Reagan ran “the biggest-spending administration (as a percentage of GDP) since World War II.”

Why he remains a conservative icon, despite that track record, is a mystery.

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Swami_Binkinanda
Comment posted May 7, 2010 @ 11:18 pm

Because conservatism is a fantasy land not unlike the Heavy Metal spoof in South Park. They think they are mighty warriors battling evil foes for the best bewbies in the land; but they are really deluded hicks high on cat pee wrestling limply in a sandbox. Alice in Wonderland crossed with civil war reenactors.
It's the same deal with the Amity Shlaes “New Deal prolonged the Depression” story that claims it was WWII that ended the Depression while pretending that the government takeover of the entire economy in an unprecedented totalizing of the nation was somehow less offensive than the minor stimulus efforts of the New Deal. How many ration coupons for gas with Obama's picture on it have you gotten? Did you get your butter rations or did you get the margarine with the blob of orange coloring in the middle of a block of Crisco? Yet the right thinks that was okay. Same deal during WWI with the USRA taking over and revitalizing the private railroads.


strangely_enough
Comment posted May 7, 2010 @ 11:31 pm

From Joan Didion's Political Fictions:

This president who was not a marionette would be shown making decisions, and not only that: the decisions he was shown making (or more often in this instance, where rhetoric was soon understood to be interchangeable with action, the speeches he was shown making) would have demonstrable, preferably Manichean, results.
[...]
This faith in the laser-like efficacy of Reagan's rhetoric seems undiminished by the fact that it remains largely a priori. “Going after a major policy change, crafting a practical policy initiative, and sticking with it is an accomplishment,” Martin Anderson, who was Reagan's chief domestic policy adviser in the early administration, tells us in Recollections of Reagan. Yet the accomplishment he cites is the 1983 SDI, or “Star Wars,” speech. “Another very important event in 1983 took place two weeks after the SDI speech,” he adds, and, again, it develops that he is talking about not an actual “event” but another speech, in this instance the popular “Evil Empire.”

The myth is simply too important to be endangered by facts…


Richard Stands
Comment posted May 8, 2010 @ 12:05 am

So true. Every president says whatever will be popular among the necessary voting blocs at the moment, and then do whatever is expedient later. Neither Reagan nor Obama are exceptions.

There is no immediate upside for any politician to actually cut spending. It's up to the electorate to demand it.

No matter who invokes whom, the American federal government is on a version of the same unsustainable spending sickness that Greece is suffering. The federal debt is approaching 100% of GDP. The dollar will likely be the currency that the Europeans with grasp for as they circle the rim. Will it have any strength at all by then?


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malcolmcalder
Comment posted May 8, 2010 @ 5:57 pm

["Why he remains a conservative icon, despite that track record, is a mystery."]

It's only a mystery if we naively assume that Brady's arguments (and the Reupblicans' generally) are being made in good faith: that his primary concern has to do with debt and deficit, and dispassionate economic analysis generally — and NOT about antagonistic party politics.

But where, oh where, is some good evidence that that assumption is warranted? (Evidence that it's not — at least wrt Rebublicans generally — is so abundant that to participate in our political culture is to swim in a sea of it.)


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mmeaders
Comment posted May 12, 2010 @ 4:04 pm

Wasn't there a campaign a few years ago by conservatives to recast the Reagan era? Thom Hartmann talks and writes about this:

“Nearly that much has been spent funding the revisionist history of Reagan’s record. Organizations like Grover Norquist’s “Ronald Reagan Legacy Project” are already organizing to mythologize the G.W. Bush record.

Reagan gave us the “October Surprise”, “Iran/Contra”, CIA involvement in the drug cartels, deregulation, privatization, lower taxes on the corporate elite, and in effect declared war on the middle class. If you don’t know what I’m talking about; google it! His administration saw more federal indictments than any administration in the history of our country. He gave us our first 15.5 billion dollar deficit. He gave us “Reaganomics” or a trickle down economy often referred to as “Voodoo Economics”. He gave Clinton’s White House the stimulus for lifting the “Glass Stiegel Act” leading directly to the “home loan travesty”. He set a precedent for using 160 billion taxpayer dollars to bail out financial institutions in the Savings and Loan” debacles of 1985, arguably setting the stage for Bush’s TARP policies that surrendered “main street” to “wall street”. “
http://www.thomhartmann.com/users/legends3/blog…


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Comment posted July 28, 2010 @ 7:54 am

But where, oh where, is some good evidence that that assumption is warranted? (Evidence that it's not — at least wrt Rebublicans generally — is so abundant that to participate in our political culture is to swim in a sea of it.)


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