FacebookTwitterGoogle+RedditEmail

The Real Reagan Economy

by MICHAEL WALKER

Since the start of the presidential primary campaign, Republican candidates have missed few opportunities to laud the achievements of conservative hero and former president Ronald Reagan, or to portray themselves as his worthy successor. As Michele Bachmann declared after the Iowa caucuses, “What we need is a candidate in the likeness and image of a Ronald Reagan…What we need is a fearless conservative, one with no compromises on their record, on spending, on health care, on crony capitalism, on defending America, on standing with our ally Israel.”[1]

Mitt Romney and Newt Gingrich have also invoked Reagan as an example of a model president. They have contrasted what they see as his superior handling of the economy with the woes suffered during President Obama’s tenure. In an op-ed published by the Wall Street Journal in December, Gingrich, who proudly touts himself as a “Reagan conservative”, wrote of an economic “nightmare” in America, which “will not end until Reagan-era economic policies are restored.” One such policy is “spending controls”.[2] Frontrunner Mitt Romney has likewise expressed his admiration for the “smaller government policies of the Reagan era [which] helped turn around a struggling economy and create millions of jobs.”[3]

It seems to me that these Republicans are suffering from some form of amnesia, whose effects appear to have been amplified by the onset of the election season. For, regardless of the “smaller government” claim made by Romney, the reality is that President Reagan went on a spending blitz during his two terms in office, running up colossal budget deficits worthy of a European tax-and-spend socialist, while repeatedly promising to balance the budget.

The staggering debts accrued by Reagan’s administration were due in large part to an explosion in military spending, which shot up by a whopping forty percent between 1980 and 1984. By the time he left office the man who, in Bachmann’s words, had made “no compromises” on spending had somehow succeeded in adding well over a trillion dollars to the national debt, and had turned the United States from the world’s largest creditor to its largest debtor. Not once did Reagan come close to balancing the budget.

Even Reagan’s own officials acknowledged that the national debt had ballooned to nightmarish proportions. David Stockman, who served as Director of the Office of Management and Budget until 1985, stated privately that “We are violating badly, even wantonly, the cardinal rule of sound public finance: governments must extract from the people in taxes what they dispense in benefits, services and protections.” He added that “If the Securities and Exchange Commission had jurisdiction over the executive and legislative branches, many of us would be in jail.”

There is a chasm separating the Republican presidential candidates’ own remarks on the urgency of reducing the present government debt from what occurred on Reagan’s watch. For instance, on Mitt Romney’s campaign website, it states that “Washington is spending money in an out-of-control fashion” and “we must live within our means, spend only what we take in, and pay down our debt.” Had these words been spoken in the 1980s, when Reagan was in charge, they would not have been at all out of place.[4]

The same goes for Newt Gingrich’s comment that, were he to become president, he would “cut federal spending in half over the long run.”[5] This is diametrically opposed to what President Reagan accomplished.

There is of course one way to reconcile the apparent contradiction between the Republicans’ enthusiasm for Reagan-era economics and their own remarks on the need to bring down the current, very high US debt. As the late president himself once said, “If it comes down to balancing the budget or defense, the balanced budget will have to give way.” I suspect this maxim would ultimately be followed by a President Romney or Gingrich, notwithstanding their declared determination to rein in spending. Romney is indeed committed to significantly increasing the defense budget, and plans to pour billions of dollars into modernizing the air force, building more ships, improving services for veterans and adding “at least 100,000 active duty personnel to our military payroll.”[6]

To sum up, when the name of Ronald Reagan is brought up by a Republican presidential candidate, it is wise to take what they say with a grain of salt. The Reagan they invoke is not the spendthrift budget-buster who plunged the US into unprecedented levels of indebtedness, but a mythical figure who made “no compromises” on his conservative principles. One thing is for sure, however: if a Republican defeats Obama in November, he’ll have as much trouble balancing the budget as the Gipper.

Michael Walker has a PhD in International Relations. He has written articles for Foreign Policy in Focus, openDemocracy and Colombia Journal.

NOTES.

More articles by:

CounterPunch Magazine

minimag-edit

bernie-the-sandernistas-cover-344x550

zen economics

January 24, 2017
Anthony DiMaggio
Reflections on DC: Promises and Pitfalls in the Anti-Trump Uprising
Sharmini Peries - Michael Hudson
Developer Welfare: Trump’s Infrastructure Plan
Melvin Goodman
Trump at the CIA: the Orwellian World of Alternative Facts
Sam Mitrani – Chad Pearson
A Short History of Liberal Myths and Anti-Labor Politics
Kristine Mattis
Democracy is Not a Team Sport
Andrew Smolski
Third Coast Pillory: Mexico, Neo-Nationalism and the Capitalist World-System
Ted Rall
The Women’s March Was a Dismal Failure and a Hopeful Sign
Norman Pollack
Women’s March: Halt at the Water’s Edge
Pepe Escobar
Will Trump Hop on an American Silk Road?
Franklin Lamb
Trump’s “Syria “Minus Iran” Overture to Putin and Assad May Restore Washington-Damascus Relations
Kenneth R. Culton
Violence By Any Other Name
David Swanson
Why Impeach Donald Trump
Christopher Brauchli
Trump’s Contempt
January 23, 2017
John Wight
Trump’s Inauguration: Hail Caesar!
Mark Schuller
So What am I Doing Here? Reflections on the Inauguration Day Protests
Patrick Cockburn
The Rise of Trump and Isis Have More in Common Than You Might Think
Binoy Kampmark
Ignored Ironies: Women, Protest and Donald Trump
Gregory Barrett
Flag, Cap and Screen: Hollywood’s Propaganda Machine
Gareth Porter
US Intervention in Syria? Not Under Trump
L. Ali Khan
Trump’s Holy War against Islam
Gary Leupp
An Al-Qaeda Attack in Mali:  Just Another Ripple of the Endless, Bogus “War on Terror”
Norman Pollack
America: Banana Republic? Far Worse
Bob Fitrakis - Harvey Wasserman
We Mourn, But We March!
Kim Nicolini
Trump Dump: One Woman March and Personal Shit as Political
William Hawes
We Are on Our Own Now
Martin Billheimer
Last Tango in Moscow
Colin Todhunter
Development and India: Why GM Mustard Really Matters
Mel Gurtov
Trump’s America—and Ours
David Mattson
Fog of Science II: Apples, Oranges and Grizzly Bear Numbers
Clancy Sigal
Who’s Up for This Long War?
Weekend Edition
January 20, 2017
Friday - Sunday
Paul Street
Divide and Rule: Class, Hate, and the 2016 Election
Andrew Levine
When Was America Great?
Jeffrey St. Clair
Roaming Charges: This Ain’t a Dream No More, It’s the Real Thing
Yoav Litvin
Making Israel Greater Again: Justice for Palestinians in the Age of Trump
Linda Pentz Gunter
Nuclear Fiddling While the Planet Burns
Ruth Fowler
Standing With Standing Rock: Of Pipelines and Protests
David Green
Why Trump Won: the 50 Percenters Have Spoken
Dave Lindorff
Imagining a Sanders Presidency Beginning on Jan. 20
Pete Dolack
Eight People Own as Much as Half the World
Roger Harris
Too Many People in the World: Names Named
Steve Horn
Under Tillerson, Exxon Maintained Ties with Saudi Arabia, Despite Dismal Human Rights Record
John Berger
The Nature of Mass Demonstrations
Stephen Zielinski
It’s the End of the World as We Know It
David Swanson
Six Things We Should Do Better As Everything Gets Worse
Alci Rengifo
Trump Rex: Ancient Rome’s Shadow Over the Oval Office
FacebookTwitterGoogle+RedditEmail