Reagan's Top Economist Says GOP Misled the U.S. and Tanked the Economy

by PRW Staff — August 13, 2010 - 1:58pm
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Reagan toastLost in the 24/7 news cycle has been a July 31, 2010 opinion-editorial by David Stockman, former director of the Office of Management and Budget under President Ronald Reagan. Stockman was closely tied to the development of the Reaganomics ideology, but now he points to massive failures by Republicans, while they were in power, to assure that financial accounts were balanced in government, international trade, on the ledgers of central banks and in the affairs of private businesses and households. Stockman excoriates modern Republicans, and particularly Senate Minority Leader Mitch McConnell, for claiming the party's current economic doctrines are rooted in traditional GOP financial philosophy. He points to a list of misguided Republican actions that have led the country to economic disaster: the runaway growth of public debt resulting "not from big spending by the Democrats, but instead the Republican Party's embrace ... of the insidious doctrine that deficits don't matter if they result from tax cuts," the neocon's sky-high inflation of the military budget, the "warfare state," the removal of traditional restrictions on leverage and speculation by the financial sector which led to a "vast, unproductive expansion of our financial sector," and the steady sending of jobs and production offshore. Stockman charges that Republicans have strayed so far from their ideological roots that they have "made a mockery of party ideals" and led the country into adopting policies that crippled the economy.

Main Source: 
MarketWatch, August 10, 2010

Comments

Technology Transfer and much,much, more

Submitted by itsthejobsstupi@twitter (not verified) on July 11, 2012 - 10:08am.

I see you folks have done yr homework. Yes, America's long decline which is still on-going, started because of the short-sighted policies of the Reagan presidency. Giving away everything that maintains a thriving, democratic economy is no way to run a country. But that is precisely what Reagan did. I wrote a book on this subject, It's the Jobs, Stupid. Available from Amazon. Also please join us on twitter@itsthejobsstupi (No "d")where we discuss ways to re-energize our economy.

This 'crisis' was contrived, deliberate & avoidable

Submitted by fubar (not verified) on July 11, 2012 - 1:12am.

He came in peacably, it started with 666.
When Ronald(6) Wilson(6) Reagan(6) came to power, the dark forces kicked the door in and the party of greed and materialism prevailed.
The first thing to go was the solar panels were ripped off the White House that Carter put up there to symbolically represent our push to wean from our addiction to toxic fossil fuels, and quit being vulnerable to the less than dependable, even belligerent, countries that supplied us with that poisonous source of fuels. Germany recently supplied half of its domestic national energy needs through the use of solar. What if Reagan instead created a Manhattan Project style push to assemble the finest minds to perfect existing clean green technologies (especially concentrating on battery storage), while searching for alternative renewable non-polluting sources. Instead of the tens and cumulative hundreds of $billions given in oil company subsidies, what if that money went to creating a grid friendly to a national solar push, using incentives for homeowners to put panels on their roof, like in Germany? That would mean jobs and creating whole new industries from the ground up.
But I digress.

Supply Side

Submitted by Anonymous (not verified) on July 10, 2012 - 10:28pm.

It makes sense that the wool was pulled over peoples eyes when it came to supply side economics. It just doesn't make any sense if you break it down. But the right keeps trying to cram it down Americas through with their "job creators" BS. The tax rates prior to Reagan encouraged those job creators to fold profits back into the company. This is because they would leave the highly taxed upper income in the company. This still would increase the value of the company and the wealth would still get them as stockholders. Now there is no incentive to leave profits in the company, why not just send the money to Switzerland? That creates a lot of jobs doesn't it. The only realistic way to create jobs is to get the demand up to increase sales. Even as benevolent as those job creators are they are not going to hire more people just to warehouse more inventory. The middle class is what needs to create demand by having a reasonable amount of money available. Those outsourced jobs are not going to do much to increase demand here.

Don't fall into the trap, folks.

Submitted by Anonymous (not verified) on July 10, 2012 - 9:56pm.

Just because Reagan had his share (and more) of bad policies, bad decisions, and generally bad government, does not make these findings ANY less valid.

This is the kind of 'logic' that the politicos would like you to fall for, that when we're led down a bad Economic/Social path, and then someone comes along and tries to lead us down an equally bad or WORSE direction, that because it's 'different' automatically makes it 'better'.

It doesn't.

We've not had responsible government in three decades. For thirty years, we've had corporate plutocrats in bed with government stooges, all conspiring (yes, CONSPIRING!) to defraud the public and take over what is not rightfully theirs.

Our present government (and present candidates) aren't interested in fixing any of this, they only want to redress just enough to get us to shut up about the royal shafting we've been getting, and will continue to get.

So... come election day, exercise your RIGHT to choose.. and if that means choosing someone else other than the delegated figurehead... write it in.

I recommend gary Johnson, but, that's me. Your mileage may vary.

third party candidates

Submitted by James E Morris (not verified) on July 16, 2012 - 9:31am.

Due to a large number of policies and factors, a vote for Gary Johnson is going to be a vote for Romney and therefore, the worst of the worst when it comes to continuing the policies of the neoliberals. May as well vote for Forest Gump.

Reaganology

Submitted by Anonymous (not verified) on July 10, 2012 - 9:35pm.

The problem is that Reagan probably knew that most of what he said was nonsense and was useful only as a means to get yourself elected to some office. Whatever effectiveness Reagan had, resulted from the opposite of his stated views. The accolates drank the coolaid and now believe that this is away to run a government with disaterous results. We are being Groverized in the name of the Gospel according to Ronny.

Republicans are EVIL \o/

Submitted by Zarrakan (not verified) on July 10, 2012 - 9:30pm.

What the Republicans want is the complete destruction/subjugation of the non-rich to give everything to the rich (wealth, power, rights, etc). If there is an option that helps the non-rich, the Republicans will automatically oppose it, and Mitt Romney is no different. Mitt Romeny via his influence with Bain Capitol single handedly liquidated/looted/destroyed many buisnesses, and directly caused millions in unemployment both by direct job loss, and the ripple effect through the job markets. I made a video about unemployment, and how we can fix it. It’s at my YouTube channel Zarrakan, and here’s the link:

http://www.youtube.com/watch?v=l6qjvLSCtpc

Watch it, share it, and join the fight against those who want to kill all of us with destructive social policies.

You are so right

Submitted by Anonymous (not verified) on July 11, 2012 - 9:31am.

Its the only word you can come up with to some up what they are and what they have become...EVIL!

Republicans Are EVIL \o/

Submitted by Zarrakan (not verified) on July 10, 2012 - 9:26pm.

What the Republicans want is the complete destruction/subjugation of the non-rich to give everything to the rich (wealth, power, rights, etc). If there is an option that helps the non-rich, the Republicans will automatically oppose it, and Mitt Romney is no different. Mitt Romeny via his influence with Bain Capitol single handedly liquidated/looted/destroyed many buisnesses, and directly caused millions in unemployment both by direct job loss, and the ripple effect through the job markets. I made a video about unemployment, and how we can fix it. It’s at my YouTube channel Zarrakan, and here’s the link:

http://www.youtube.com/watch?v=l6qjvLSCtpc

Watch it, share it, and join the fight against those who want to kill all of us with destructive social policies.

If you bother to read the

Submitted by Anonymous (not verified) on July 10, 2012 - 2:12pm.

If you bother to read the original article, Mr. Stockman points some fingers at both parties. While the essence of this article is true, he doesnt blame it all completely on the Repubs just mostly.

ps. knowing that the person quoted someone, doesnt mean the quote isnt taken somewhat out of context.