RIP Reaganomics

"We have always known that heedless self-interest was bad morals. We know now that it is bad economics."

Franklin Delano Roosevelt (1937)


"...Let's talk for a moment about why the age of Reagan should be over.

First of all, even before the current crisis Reaganomics had failed to deliver what it promised. Remember how lower taxes on high incomes and deregulation that unleashed the "magic of the marketplace" were supposed to lead to dramatically better outcomes for everyone? Well, it didn't happen.

To be sure, the wealthy benefited enormously: the real incomes of the top .01 percent of Americans rose sevenfold between 1980 and 2007. But the real income of the median family rose only 22 percent, less than a third of its growth over the previous 27 years.

Moreover, most of whatever gains ordinary Americans achieved came during the Clinton years. President George W. Bush, who had the distinction of being the first Reaganite president to also have a fully Republican Congress, also had the distinction of presiding over the first administration since Herbert Hoover in which the typical family failed to see any significant income gains.
And then there's the small matter of the worst recession since the 1930s.

There's a lot to be said about the financial disaster of the last two years, but the short version is simple: Politicians in the thrall of Reaganite ideology dismantled the New Deal regulations that had prevented banking crises for half a century, believing that financial markets could take care of themselves. The effect was to make the financial system vulnerable to a 1930s-style crisis — and the crisis came..."

Paul Krugman
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"Ronald Reagan cut everything in the budget, and yet they say he made the biggest deficit (until George W. Bush) in the country. I don't know how they come up with that. It's Washington math."

Rush Limbaugh
on the Radio

Reagan didn't cut the military budget. It reached historic highs. Under Reagan, the national debt more than doubled.