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Does McCain Still Agree with Reagan that Government is the Problem?


Ronald Reagan, in his first inaugural address, famously declared that "government is not the solution to our problem; government is the problem."

Twenty-seven years later, in the midst of the worst economic crisis since the Great Depression, and seven-plus years into the reign of Bush and Cheney, Reagan's anti-government battle cry should be on trial. But, stunningly, it is not.

This needs to change. The presidential candidates' view of the role of government should be one of the central questions of the last 36 days of the campaign. And it should definitely be a question they are asked at their next debate:

"Sen. McCain, given the part deregulation played in the current economic crisis and your support of a massive government bailout of the financial industry, are you now ready to break with Ronald Reagan's assessment?"

And, to be even handed: "Sen. Obama, in 1996, Bill Clinton cheerfully announced that 'the era of big government is over.' As the Dow plummets and Wall Street and Main Street turn to Washington for big government bailouts, are you now ready to break with President Clinton's assessment?"

The shift in my own thinking on the role of government was what led to my disillusionment with the Republican Party, and the transformation in my political views. I've always been progressive on social issues: pro-choice, pro-gun control, pro-gay rights -- even when I was a Republican. The big difference is that I once believed the private sector would address America's social problems. But the hope that people would roll up their sleeves and solve this country's social ills without the help of government was never fully realized. There were never enough volunteers or donations -- and the problems were just too massive and intractable to tackle without the raw power of appropriations that only government can provide.

Our economy is not the only thing that is crumbling. So is the philosophical foundation of the modern Republican Party -- also known as the Leave Us Alone Coalition, led by its spiritual guru, Grover Norquist. His dream of making government so small "we can drown it in a bathtub" has been embraced by the GOP mainstream.

Indeed, during his 2003 inauguration, Jeb Bush stood in front of Florida's capitol building and said: "there would be no greater tribute to our maturity as a society than if we can make these buildings around us empty of workers; silent monuments to the time when government played a larger role than it deserved or could adequately fill."

I sadly suspect that Jeb and Grover and their Republican compatriots have not yet updated their views of government -- they have not yet made the connection between demonizing government and looking to it to save the day.

The financial meltdown has put the Grand Old Party's schizophrenia on full display. But why are so many in the media, the Democratic Party, and the Obama campaign averting their eyes from the spectacle of a party that wants to drown government until they need it to bail out Wall Street or AIG -- that wants to vanquish government workers, unless they are listening in on our phone conversations or working hard rolling back government regulations?

It's like the story, probably apocryphal, of the agitated -- and obviously confused -- senior citizen imploring a GOP politician not to "let the government get its hands on Medicare."

With the madness of this contradictory mindset exposed, voters will have a chance to decide if they agree with Norquist and Jeb and W and Cheney and the Republican Messiah himself, Ronald Reagan and, yes, with John McCain. And even Cindy McCain who, in her otherwise bland convention speech, called for "the Federal government" to "get itself under control and out of our way."

A staggering 83 percent of Americans believe that we are heading in the wrong direction. And, I'm sorry, Sen. McCain, I don't think it's because of too many earmarks or because $3 million was spent in 2003 to study bear DNA in Montana.

Size matters in some things, but when it comes to government, it's not the size of the government, it's the way it is utilized.

"Big government" didn't get us into Iraq. It didn't spy on Americans or open black op rendition facilities all over the world. "Big government" didn't create Guantanamo or okay the use of torture. "Big government" didn't leave the residents of New Orleans to suffer in the wake of Katrina. "Big government" didn't cause the financial industry to run off the rails. Indeed, the free market is what created all the new, risky ways for banks to game the system and, eventually, implode -- then come calling on "big government" to ride to the rescue.

So let's hear what McCain and Obama think the fundamental role of government should be. I can think of no better way to underline the massive gulf between the two candidates -- and the two parties they represent -- at the very moment when McCain is so desperately trying to blur the differences (see his recent shopping spree at the second-hand populism store: "Big discounts on 'fat cats' and 'Wall Street greed'!")

Stanford professor Lawrence Lessig says that if Americans recognize that the financial crisis -- and the need for a government bailout -- is due to "policies McCain still promotes... this could well be the event that effected a generational shift in governmental attitudes. Think Hoover vs. (the eventual) FDR."

But if we want to make sure that Americans make that connection, we need to put the question of the role of government front and center in the campaign. Economic policy and foreign policy and domestic policy are all important areas of debate. But before we continue looking at the (falling) trees, let's take a step back and consider the forest.


For those of you in the Pennsylvania area, on Monday I'll be debating Mike Huckabee in Hershey, Pennsylvania. For more information, click here.

Follow Arianna Huffington on Twitter: www.twitter.com/ariannahuff

 
 
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11:18 PM on 10/04/2008
I think the truth will condemn the Republicans. The truth is that they are lying about Reagan and Reagan would be disgusted by today's republican party.

Reagan actually voted for FDR and never expressed remorse, saying instead that "I didn't leave the democratic party, the democratic party left me".

I'm not going to defend some rather ugly consequences for unfortunate individuals who, for example, were thrown out of mental hospitals to die on the streets of NY City during Reagan's term.

However, I don't think Reagan, who experienced the 30's, would be de-regulating the banking system.
Reagan insisted that the capital gains tax be the same as the tax on wages. That puts Reagan to the left of Obama and it puts today's Hannity and Ingrahams high on the mendacity scale when they invoke Reagan to suggest capital gains tax rates should be zero.

Dems shouldn't be condemning Reagan; they should be condemning republicans for abandoning Reagan and embracing casino economics of Phil Gramm. The total dissolution of McCain's campaign came when he voted to bail out Wall Street while excoriating Main Street for "whining".
The present republican political philosophy is totally out of touch with the times. The excesses of liberal politics of the 60's were done away with long ago and listening to republicans pretending they are in 1980 just isn't cutting it. We are in an age where the public wants to correct the excesses of the last 8 years, not go back to 1980.
07:30 PM on 10/04/2008
It’s time for the Obama campaign to explicitly call out the fact that the Republican economic polices, also known as “Reaganomics” have been dealt a mortal blow with the current crisis.

Reaganomics was based in there core principles:
1.- The Government is the problem; not the solution, thus…
2.- Government should get out of the way and therefore deregulation is the way to go, because…
3.- The market economy will take care of everything automatically is just a matter of giving tax cuts to the wealthy and, in time, prosperity would trickle down to the rest of the people (presumably following some misapplied of gravity or something!)

Our economic meltdown is proving the government IS the solution and the deregulation does not work; the real problem is when government is “run” by the very INCOMPETENT and CORRUPT which historically have been the Republicans. “Trickle down” has not worked either. If anything, American workers productivity gains in the last twenty years have not resulted in comparatively equal salary or compensation improvements.

Now, as recent as the VP debate, Governor Palin asked for the government gets out of the way and the McCain tax cuts. It’s clear they are following the old, broken, Republican script even as they try to disassociate themselves from Bush.

In the next debate Obama should highlight that McCain’s program is exactly the same economic philosophy that has gotten us into this mess in the first place, and how that’s not change byt truly more of the same!
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09:52 PM on 10/04/2008
It's not that the Democrats are averting their eyes, it's that they have been enabling if not downright complicit in the way they have been handling the Republicans free market march to its ultimate failure. If the Dems are not guilty of actually implementing those ideas then they certainly must bear the responsibility of just standing by and basically doing nothing about it.
05:17 PM on 10/04/2008
Indulge if you will:
How to deal as effectively as possible with a smear campaign?
Point out how desperate these ads are and that desperation is exactly what we don’t need right now in our country.
Use actual McCain clips and use Obama’s voice commenting on them.
For instance: McCain has an ad that blatantly demeans Obama or uses old lies as truth.
An effective Obama response would start with Obama saying that his opponent appears to be getting desperate. A portion of the McCain ad then runs.
Obama finishes with “This kind of desperation doesn’t help our economy, our need for a better health care, our need to leave an ill conceived war, etc.....
My name is Barack Obama. We need steadiness right now. There are problems we need to solve.
04:11 PM on 10/04/2008
Honesty is just as important as ideology. I question whether McCain has high enough ethical standards to be president.

Senator McCain's campaign was involved in some highly questionable actions in helping halt the Nevada State Republican convention before it had finished its work. A full account of that is given at the following link on YouTube.

http://www.youtube.com/watch?v=Zgy6J6jCyBQ
02:16 PM on 10/04/2008
Equally important as a public debate about the role of government, however, is a debate about why government continues to grow, however ineffectively, and what areas of our lives it should and should not intrude upon. Although most democrats do not, for political expediency, want to question their own leaders' roles in creating Big Brother, that uber sibling is very real. That goes even more so for the Republicans. The core problem with the model of government that both parties profess is that they both need government to grow in order to support their neurotic needs. The Democrats need a Daddy and Mommy to take care of them. The Republicans need a Daddy and Mommy to take care of the kids they don't like. Both tolerate the growth of the Military Industrial Complex, the loss of civil liberties, and true access to basic economic and social services to the wealthy. As just one example, McCain and Obama differ about the war only in how they want to continue to execute it. I'm afraid that our country isn't ready for a debate about the realities of government or how little difference there is on some basic issues about the major parties' use of government.
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snoopbuzz
Left RNC because of TP
09:48 PM on 10/04/2008
I always read the comments on these blogs and usually am very disappointed in them. But, I really liked this on. Its good to see a post I can agree with. I echo your opinion. Its just scary that what we are actually voting for is just a figurehead and not the actual ideals for a party. The people they appoint and ask advice from are actually the people running the country. Where would people be without disasters. Government took care of most of them. I was involved in the floods of 2008, the Red Cross was there and helped people out and FEMA was there as well taking care of as many as they could as well as the National Guard. So, I don't believe either of them should be knocking government too much.
BTW, Good job on the blog Ari
10:52 PM on 10/04/2008
CAPlatt you seem to be the only one on this entire site that makes any sense. The fact is with the polarization in the country the conversation that is needed will not be taking place any time soon. There isn't much difference between the parties , Bush has governed like a Democrat expanding government and deficits and sticking our nose in places we don't belong. Obama or McCain will do the same, at least McCain has the character to do what he thinks is right, whether you agree or not .Obama is a schill who will only do what the politically correct tell him to do. Worst of all he has no cachet with Congress so with his election we get Pelosi and Reid running the country and that is very scary. If you think the last 8 years were bad wait for chapter 2. What is needed is an entirely new personality on the lines of Jackson, FDR, Kennedy or Reagan. Someone with the charisma the gravitas and the guts to forge an entirely new paradigm for this country .
02:13 PM on 10/04/2008
It's always that the rich need to pay more with the liberals. How much are they suppose to pay? 50%, 60%? How much?
01:21 AM on 10/05/2008
Are you upset because you're rich....??
08:17 AM on 10/05/2008
Well, I'm not rich, but earn enough to be in a 32% tax bracket. The problem is that I don't make enough to really invest, whereas wealthy people have various securities that they can continue to draw interest and earnings from. They have the ability to recover from their tax burden much more easily, as they can generate much more income. That is the problem with middle americans. Proportionately, our tax burden is much greater. We need a VAT tax system and drop our present income tax system. VAT is fair because you pay a flat tax on everything you buy. It is proportional because if you buy a Ford Focus for 15,000 at 6% for example, you pay 900 dollars in tax. If you buy a BMW 535i for 39,999 (a deal) you pay 2340 dollars in taxes. What you pay is in proportion to what you earn and can afford to buy. Many countries in Europe have the VAT and it works well. In LA I paid 8.25 sales tax recently, and that is on top of money already taxed by the federal, state and local taxes taken out of my paycheck. This is such a simple solution. Please realize that wealthy people can carry more taxes as they have securities to replace their tax burden and have loopholes as well. The truth is also that we need government, and the government has to have revenue. That comes from taxes. That's just the way it works.
02:03 PM on 10/04/2008
I would be one of those 83% of people that think the country is headed in the wrong direction because I thnik we are headed towards socialism under Obama.
03:05 PM on 10/04/2008
How on earth do you conflate Obama with Socialism -- you obviously do not know the meaning of the word.

Senator Obama's plans are about fairness.

Maybe you'd be happy with a third world approach to welfare - let them just beg in the street; or housing - let them build their shacks in shanty towns?

I am not.

I am first and foremost a civilized human being, and that very act of civilization is what demands of me a willingness and desire to do what I can to ensure a first world life for everyone in this country. Secondly, I can then devote energies to ensuring the same for others around the world - but charity, and humanity, begins at home.
03:37 PM on 10/04/2008
Obama's plans will probably create more inequalities, then help people. Government charity is the path to hell paved with good intentions. Ensuring a first class life for everyone would kill the motivation to help yourself. Real charity would be saved for the people who can't help themselves, the mentally ill living on the streets, the drug addicts stigmatized by the criminalization of their disease. It shouldn't be used to help people have more kids then they can afford or a nicer house, car, TV or whatever they want but can't have.

Furthermore, Democrats need a large underclass to get elected. If everyone was well to do then who would need them.
03:40 PM on 10/04/2008
Fairness??
The top 10% pay 68.0% of the federal income tax
The bottom 50.0% pay 3.3%
02:00 PM on 10/04/2008
Government did cause this financial crisis. It was Barney Frank and Chris Dodd urging Fannie Mae and Freddie Mac to give loans to people that couldn't afford it. And why are the European countries turning away from socialism while we are going in that direction? Because it was not good for their economy.
03:06 PM on 10/04/2008
Just a republican troll.

Two years of a slim democratic majority, constantly denied progress through filibuster and veto, is being blamed for 12 years of republican house and senate rule.

Wonderful.
01:26 AM on 10/05/2008
...and obviously a troll who watches Bill O'Reilly.
10:57 PM on 10/04/2008
De-regulation of the financial industry caused the problem.
12:05 AM on 10/05/2008
Republicans tried to bring Fannie Mae and Freddie Mac under control twice and the democrats stopped it. Barney Frank and Chuck Schummer said everything was fine. It's no lie. It's all on the record to read and see.
01:54 PM on 10/04/2008
The Democrat's hands are just as dirty regarding the bailout as are the Republicans. The proof of that has been on television, with video clips of Barney Frank et al saying nothing was wrong with Freddie and Fanny, after they'd been warned that a catastrophe was on the horizon.

Bringing up Iraq and claims that the wiretapping was illegal and all that is an irrelevant digression. All of those actions have been properly defended, although not accepted by the left.

What's going on now is the classic "throw the bums out" reaction to very bad news. It's the way of politics. When the Democrats take over, they'll make their mistakes and they'll be the ones hung out to dry. The pendulum never stops swinging.
01:38 PM on 10/04/2008
Amen and thank you Arianna. We are also lifelong republicans who can no longer understand what McCain and the Republicans are supposed to be or where they stand, and we can not stomach where they are taking this campaign.. Like you, we have been waiting for someone to call them out on this specific issue. McCain and Palin both keep saying that the government needs to step in to end the Wall Street greed followed by some sort of statement like "Government is the problem" and we need to get it out of the American markets. Palin said this in the debate and she and McCain constantly state it in speeches.

It's obvious from his record that McCain has never supported regulation and it is quite clear in his and her speeches that he still believes that deregulation is the way out of it. Yet - the only people I have heard comment on this are John Harwood on CNBC and now Arianna. Words are important and we all need to listen to what is actually being said. It would be nice if the media actually reported any of this, but it appears that this is all too complicated for them. Hopefully the American public is paying enough attention to recognize the obvious contradiction.
01:16 PM on 10/04/2008
I don't think McCain ever believed in small government. He seems to be a neoconservative which BTW started in the Democratic party. I kid you not, they were orginally liberal hawks. Just think of the drug entitlment, is a result of the neocon domination of the Republican pary. Small government, fiscal conservatives like me have been run out of the Republican party.
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peter777
12:24 PM on 10/04/2008
The conservative wing of the Republican Party, which dominates it, believe that the best government is the smallest possible. Some even believe in almost no government functions- that most functions can be carried out by capitalists operating in society. That, of course, has been disproved thoroughly by the Bush Administration. The Republican Party is becoming the new Know Nothing Party. They don't believe in science, distrust intellectualism, call non-Republicans names, can't or don't want to govern in the interest of the people, and call themselves Great Americans. They are a joke, and the American People are waking up to that fact.
01:09 PM on 10/04/2008
It is unfortunate that both free-market economics and anti-intellectualism define the Republican Party. Unfortunate because the onerous nature of the one (anti-intellectualism) pollutes the other (belief in free-markets) through association. But free-markets didn't get us into this mess, it was anything but. Government got us into this mess by distorting free markets. I won't try to convince anyone of this here, but I hope that people don't move to pass summary judgement on free-market capitalism without deep and probing thought about the genesis of our current financial problems. I also hope that people realize that the convulsions we are experiencing are in fact what markets do when they regulate themselves. Of course the convulsions are extremely violent because government engineering of the markets created a huge misallocation of capital (a bubble) and longed delayed the day of reckoning. But the convulsions prove that markets work, the markets are telling us that you can't create credit out of thin air without consequences, you can't speculate up the price of assets indefinitely, and you can't live sustainably on a culture of debt. Yet we choose a path this week based on the faith that we can escape financial ruin by leveraging our government to prop up the value of asset that the market says should be must less. I fear we are only adding fuel to the fire. What happens when our Government no longer can sustain our bubble-based economy by increasing its debt?
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darrenlobo
Darren Wolfe is the former Eastern Vice Chair of t
02:42 PM on 10/04/2008
As a libertarian I read a post like this in disbelief. Bush is the biggest spending prez since Johnson. Govt has grown under Bush, not shrunk. How does this disprove (or prove, for that matter) anything about free markets?
01:30 AM on 10/05/2008
well, the republicans need large numbers of government bureaucrats to hand out no-bid contracts and tax dollars to private industry. The size of govt and free markets are not always mutually exclusive.
10:44 AM on 10/04/2008
I am waiting for the media to define for Americans what a "Teddy Roosevelt Republican" is. McCain makes this claim over and over that he is a Teddy Roosevelt Republican. I looked it up on wikipedia. Basically Roosevelt held the same views as Barrack Obama. He favored protecting the ecology and get this labor unions. He was also the first to propose universal healthcare.
"John McCain, I read about Teddy Roosevelt and you sir are no Teddy Roosevelt".
08:54 AM on 10/04/2008
But "Big government" did get us into Iraq. It did spy illegally on Americans. And, it did lead to the Financial meltdown. It is hard to imagine the republic of Jefferson engaged in such activities. The current financial crisis is the result of government providing easy credit to the markets by setting interests rates lower than what markets would otherwise have set. Then, government nudged lenders to increase home ownership by extending loans to subprime borrowers while implicitly promising to stand behind Fannie and Freddie when things went south (this goes back to Clinton but continued under Bush). But you are right, they failed to regulate the mess they were creating. After meddling in the markets creating the largest misallocation of capital ever, they drastically reducing the amount of reserve capital banks needed on their books (Paulson actively lobbied for this while with Goldman). But to focus on this lax regulation misses the fact that this regulation was only necessary to prevent an implosion because of the huge market distortions government had already engineered. I agree that the Republicans are schizophrenic with their application of government power, but the message of Reagan is and will always be true.
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cordyc
12:18 PM on 10/04/2008
We must realize that Regan Republicans are in a state of grief for long held beliefs that are being proved untrue and unworkable. Many will be in the denial stage of grief or the anger stage of grief for a while. Warren Buffet said the other day that he could only take 1% of the deal, it is that BIG. When the 2nd richest guy can only take that small part, then Big Government must step in to save the country. We need the smartest leaders at a time like this not some guy who was at the bottom of his class and a gal who cannot think on her feet. Wink!
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darrenlobo
Darren Wolfe is the former Eastern Vice Chair of t
03:28 PM on 10/02/2008
Please read my article, "Confusion About Government at the Huffington Post"

http://www.nolanchart.com/article5071.html

for a rebuttal.