Friday, August 28, 2015

A capsule history of Reaganomics

In a comment on Paul Krugman's weekly column, a reader named "Reality Based" from "Flyover Country" says what RtO has been trying to say since 2008, but better:

We now have thirty five years of financial/economic history that should have destroyed forever the Great Lie that Voodoo economics creates anything but deficit bubbles, which are then used to attack and destroy social programs for the poor and middle class. Reagan tripled federal deficits in order to cut taxes in half for the wealthy, while weaponry expenditures exploded. Bush One left office with historic deficits and a sinking economy, which Bill Clinton remedied by returning to progressive taxation on high incomes. Every Republican in Congress said it would destroy the economy, and instead we had 20 million new jobs and zero deficits by 2000. Republicans responded with smears and impeachment. Bush2 insisted upon a return to Voodoo Economics combined with huge upper end tax cuts and two wars, which along with a financial de-regulation frenzy re-created the same enormous deficits, which were then used to try and destroy Social Security. This idiocy nearly brought down the world financial system. Obama's sane economic advisers restored job growth and eliminated most of the deficits, but sixteen Republicans are all ready to return to the same policies that have been failing for a third of a century.

The Republican Party exists to enrich the wealthy, and empower a tiny elite. It has been concentrating income and wealth, by redistributing it upwards for thirty five years. This, of course, is only possible with a politics based totally on deceit, which is the whole point.

I'd amend that to "relatively sane economic policies."  Obama and the Democrats still haven't done anything about restoring a modern version of Glass-Steagall so that the investment crooks cannot take the savings banks down along with their bucket shop operations.

Also, Reagan did not start the policy of organizing government for the benefit of the rich: that was Alexander Hamilton and his move to confiscate the value of the soldier bonuses from the heroes of the Revolution and transfer it to his cronies.

But all in all, an excellent summary.

1 comment:

  1. If, by excellent summary, you mean "typical progressive obfuscation", then yes.

    Otherwise, a Fisking would take a couple hours.