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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsHow Ronald Reagan zapped a recession with massive government spending
No one is more associated with the conservative cause of small government than Ronald Reagan.
He entered office in 1981 insisting that government deficits were too high, that taxes had to be cut, that spending had to shrink. His inaugural address declared "government is not the solution to our problem; government is the problem." His 1988 farewell address reiterated that "man is not free unless government is limited." Name-checking Reagan and these commitments has pretty much been an entry requirement for politicians into the GOP ever since.
But as people have noted over the years, there's a tension between Reagan's rhetoric and what actually went down between his inaugural and farewell speeches. Both the national debt and the size of the federally employed workforce rose during Reagan's tenure. Government spending grew as a share of the economy, then returned to exactly where it was when Reagan started.
But what's most interesting about this contradiction is that, in all likelihood, Reagan's failure to deliver on his own small government rhetoric is a big part of why the famed Reagan economic boom happened.
snip
http://www.theweek.com/articles/642128/how-ronald-reagan-zapped-recession-massive-government-spending
As all on DU have known, the Reagan myth is just that, a total myth.
uponit7771
(90,347 posts)... a bullshit ass'd excuse.
FreakinDJ
(17,644 posts)Of his policies
louis-t
(23,295 posts)Most of it was because of huge tax cuts and increased military spending. During the Reagan years, the American public first got wind of the massive rip-offs by the military industrial complex. $600 wrenches and $2,000 toilet seats or whatever. Warehouses full of spare parts that would never be used.
Dark n Stormy Knight
(9,771 posts)Republicans see spending as evil when Dems do it and Holy when they do.
nikto
(3,284 posts)That is pretty much the whole story of GOP Ideology.
63splitwindow
(2,657 posts)Yallow
(1,926 posts)""government is not the solution to our problem; government is the problem.""
Treason
Government of the people, by the people, and for the people is not the problem. People like Ronald Regan are the problem. Lying dirt bags who cut taxes on the wealthy, and stuck us with the bill. Us and our children.
TransitJohn
(6,932 posts)It does have a specific definition, and I wish that people of all political persuasions would quit labeling their political opponents with it erroneously.
Yallow
(1,926 posts)Is in my book the definition of treason. As America fails, other nations win. Attacking our government is for the direct benefit of our enemies. Agree?
TransitJohn
(6,932 posts)the dictionary nor the United States Code.
gabeana
(3,166 posts)was treason and his Iran Contra scandal sure was an impeachable offense
It was a very corrupt administration
griloco
(832 posts)Would have lost WWII
Cryptoad
(8,254 posts)Reaganomics got it started.... and it still with us....
forest444
(5,902 posts)Falling oil prices slowed inflation - with an assist from the Reagan recession, albeit at the cost of 10.8% unemployment - and falling inflation, in turn, pushed interest rates down sharply starting in August 1982.
In all, however, we had the same average rate of growth under Reagan as we did under Carter (3.3%). The difference being, of course, that while Carter left the national debt at a post-war low in relation to GDP (30%, federal only) under Reagan the national debt tripled (see chart above).
Quixote1818
(28,947 posts)Of course it was the Gov. spending that got us out of the recession and not the tax cuts.
cstanleytech
(26,299 posts)to because they are not able to deal with reality so instead they make up a delusional fantasy about Reagan as some sort of modern Davy Crockett/George Washington.
jtuck004
(15,882 posts)hand, stop the spending, and get our inflation under control by being more responsible, put on sweaters and quit giving our enemies exactly what they want.
So much for that.
Reagan taught us that we could just borrow, that good jobs and producing things isn't necessary.
That has led us to the environmental and financial shit hole that is the US today, as everyone since then has been too cowardly to reverse our course.
So the next generation will be poorer, their world will be burning, and the folks who used it up and handed it to them may get to pay a price after all.
forest444
(5,902 posts)Carter's energy policy, moreover, is what finally broke OPEC and popped the burdensome commodities bubble brought about by Nixon's pulling out of Bretton Woods (I bet Tricky Dick loaded up commodities futures as he was doing so too).
The fall in commodities prices beginning in 1980 helped push down inflation and interest rates by 1982, thus making the Reagan recovery possible.
Had it not been for Reagan we could have actually had all that without the trillions in extra debt or the S&P collapse - or Iran-Cocaine-Contra, or the crack epidemic, or Executive Order 12333 (the one that lets the NSA spy on Americans), or Al-Qaeda, or so many other unnecessary and deleterious things we could have easily avoided.
Qué será.
liberalnarb
(4,532 posts)and the auto industry collapsed. He destroyed Detroit. Fuck him.
Major Nikon
(36,827 posts)This is especially true when there is no added economic protections you are gaining by that spending. Saint Ronnie loaded Cold War 2.0 during a time when the USSR was already swirling the drain. So the myth that Saint Ronnie beat the Soviets is just that. The fall of the USSR would have happened with or without his efforts. If anything, Saint Ronnie extended the Cold War by giving the Soviet hardliners more fuel to keep it going for as long as it did. So the reality is that he pissed away around a $trillion 1980's dollars. Although increased military technology occassionally has civilian applications, usually it just manages to kill more people more efficiently.
Had Saint Ronnie invested in infrastructure or education rather than the military, the economic returns would have been an order of magnitude higher.
IronLionZion
(45,462 posts)He increased defense spending during peacetime which created lots of STEM and manufacturing jobs in defense contracting. Other sectors of the economy were not so lucky