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Jane White

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Reagan's True Legacy: Terminating the American Dream

Posted: 02/ 4/11 02:01 PM ET

As Ronald Reagan supporters celebrate his 100th birthday on Feb. 6, it's astounding how not only the right wing has inflated and distorted his legacy, but most of the so-called liberal media as well.

The inconvenient truth about how Reagan won his first term had nothing to do with his superior game plan but the fact that you had to be crazy to re-elect Jimmy Carter. Carter's reaction to the repressive Iranian regime that took Americans hostage for 444 days was simultaneously wimpy and self-righteous, implying that our gas-guzzling greed had led to the crisis along with finger-wagging us to turn down our thermostats and drive smaller cars.

On the other hand, while Reagan intolerance for repression apparently scared Iran's leadership enough to release the hostages shortly after he was elected, his subsequent deregulatory legacy has left our country in economic ruin.

You can thank The Gipper for the birth of the current mortgage crisis. As William Kleinknecht, author of The Man Who Sold the World, put it, Reagan pushed for the elimination of all ceilings on interest rates and restrictions on loans, with his goal to "allow all depository institutions to make the same type of loans in whatever amount they see fit." The subsequent Garn-St. Germain Depository Institutions Act of 1982 enabled lenders to issue adjustable rate and interest-only mortgages, the drivers of the current mortgage meltdown.

As I pointed out in my book, America, Welcome to the Poorhouse, the blame for runaway home prices also falls on Reagan since he slashed subsidies for low-income housing, making home ownership the only option for low-income families. In 1988 Reagan cut the housing budget to less than $8 billion compared to $32 billion under Carter, resulting in a 90% decrease in construction of new units in one year alone.

Wonder why we've got record federal deficits? Much of the cause stems from Reagan's corporate tax breaks; by 1983 the portion of tax receipts derived from corporate income taxes dropped to an all-time low of 6.2%, down from 12.5% in 1980 and 32.1% in 1952.

Finally, Reagan was also responsible for the spiraling cost of college, since he continued his vendetta against the government subsidy of "intellectual curiosity" launched while governor of California once he occupied the Oval Office. Although he didn't manage to abolish the Department of Education, he halved the portion of the federal budget spent on education from 12% of the budget to 6% of it. Given that more Americans believe that making college affordable is more important than reducing the deficit or cutting taxes, according to a survey cited in the Huffington Post, this measure directly defied the will of the people.

What's amazing is that even the Liberal In Name Only New York Times is lionizing Reagan -- is this selective memory driven by fears that conservative readers might cancel their subscriptions if they did otherwise? The Times' downright nasty 2009 book review of The Man Who Sold the World, was authored by an editor for the right-wing Weekly Standard, an affiliation that was not disclosed in the review.

What will Obama's legacy be? It will depend on whether the progressives who got him elected along with the media will help him channel his inner FDR or choose instead to sit back and allow the Tea Party to Carterize his term.

 
 
 
 
 
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HUFFPOST PUNDIT
jmpurser
See My micro-bio
11:07 AM on 02/07/2011
Reagan didn't so much "kill" the American dream as convert it into a laughable delusion.
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TheCommons
I didn't quit. You just bored me.
09:02 PM on 02/06/2011
Reagan was inaugurated on January 20, 1981 and the hostages were released on January 21, 1981. In that brief time span I doubt Reagan had much direct impact on the latter event.
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Danish5666
What makes life worthwhile isn't measured by GDP
09:48 PM on 02/06/2011
Other than making a deal with the Mullahs about keeping the hostage until he took office as part of the weapons deal with Israel and the Contras.
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Danish5666
What makes life worthwhile isn't measured by GDP
09:55 PM on 02/06/2011
"Finally an explanation for the odd “coincidence†of the release of the Iranian hostages at almost the exact minute Reagan was being sworn in. I remember thinking just how weird it was."

http://mountainsageblog.com/2010/05/07/ronald-reagan-interfered-with-president-carters-iran-hostage-negotiations/
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HUFFPOST SUPER USER
feliznavidad
Fierce liberal
08:59 PM on 02/06/2011
Well -- you've scratched the surface about all the things that Reagan did to destroy America -- but at least it's a beginning. However, you are wrong about why the Iranians would not release the hostages under Carter but would under Reagan -- the actions of our own CIA manipulating the election. By the way -- ridiculous that Carter told us to drive smaller cars? Would that he had won. We might have had an energy policy in place -- and by now developed some reasonable alternatives to reduce our consumption of fossil fuels. And yes -- we did make some enemies in the middle east by bankrolling repressive regimes on behalf of big oil.
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HUFFPOST PUNDIT
jmpurser
See My micro-bio
10:22 AM on 02/07/2011
Carter was right about what America needed to do.  He was wrong about America being adult enough to do it.
Genders
Love, Tolerance, Enlightenment
08:59 PM on 02/06/2011
Reagan: Democracy, the Republic, bad. Multinational plutocracy: good. What more do you need to know?
This user has chosen to opt out of the Badges program
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HST
Conservatism = selfishness
07:50 PM on 02/06/2011
"By the end of his term, 138 Reagan administration officials had been convicted, had been indicted, or had been the subject of official investigations for official misconduct and/or criminal violations. In terms of number of officials involved, the record of his administration was the worst ever."
http://www.dailykos.com/story/2005/10/17/194133/16
11:08 PM on 02/06/2011
Yes, let's celebrate the President whose administration perfected the term "plausible deniability".
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HUFFPOST PUNDIT
Rooster Coburn
Less Gov't + More Responsibility = A Better World
04:57 PM on 02/06/2011
As we begin this celebration of the life and legacy of President Ronald W. Reagan let's all remember that it will last not a single day, not a single week, not a single month nor even for a single year.  The celebration of Ronald Reagan and of the Reagan Revolution will last as long as the yearning for freedom continues to burn in the heart and mind and soul of people everywhere.  Let us all resolve this sacred day not to make a singe post on this site nor on any other that could not be characterized as "Reaganesque."  Viva la Reagan Revolution!
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HUFFPOST SUPER USER
Wendy Johnson
05:30 PM on 02/06/2011
Reaganesque? Okay:

Trees cause pollution.

I was there and helped liberate the death camps.

I know who all the commies are in the movie industry and am ready to name names.

GE is always right, because they stand for FREE ENTERPRISE AND LOWER TAXES!
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HUFFPOST SUPER USER
feliznavidad
Fierce liberal
09:00 PM on 02/06/2011
Ketchup is a vegetable.
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LapelPinPolitics
I wish I didn't know now what I didn't know then
02:33 PM on 02/06/2011
An actor, an arms dealer, a corporate puppet who's performance in front of the camera won the hearts of the shallow American right. I won't be honoring this actor or his administration.

Spiro Agnew.....extortion, tax fraud, bribery and conspiracy. Resigned the office of Vice President.
Oliver North......Arms Dealer, Drug Dealer..Government Document Shredder,,,Convicted of 3 felonies
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HUFFPOST SUPER USER
Herkv
Caught in a loop . . .
12:39 PM on 02/06/2011
The biggest fault that I can find for this article is its brevity. It barely touches on the damage done by the Reagan administration. The free market economics have destroyed a great many countries' economies in both South America and in the world, and the free market is now destroying our own country as well.
A great many of the problems we now have can easily be traced back to Reagan's dismantling of the protections - he's not alone, of course, since administrations following his, including Clinton's, have followed in his footsteps (NAFTA). And now, Obama seems to be disinclined to change course. For all his great speechmaking, any gains are so watered down as to not be gains at all.
The cadres of politicians who fought every improvement of FDR are still fighting and their patron Saint Reagan is the figure they rally around. It would be funny if it weren't so tragic.
01:33 PM on 02/06/2011
I've lived almost my entire adult lifetime in the dark shadow of Reagan. Growing up in the 50's and 60's we all had hope. The future looked bright. The American Dream that I knew wasn't about wanting to strike it rich. It was about wanting to live in a good society and to have a chance for my life to make a difference.

Reagan changed all that. He butchered the American Dream and encouraged us to follow our basest instincts instead of the nobler ones.
03:50 PM on 02/06/2011
"The American Dream that I knew wasn't about wanting to strike it rich"

Really? How do you explain the vast migration waves that came to the US over the past 234 years? Were those folks coming here to just get by?

Hard to explain the expansion west, the explosion of industry and the vast consumer society we live in by your logic.
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HUFFPOST BLOGGER
Nelson Montana
Artist, Author, Composer
09:57 AM on 02/06/2011
Blaming Reagan for the current financial crisis is absurd. Reagan got the contry back on its feet. Sure, it left a deficit -- the economy ALWAYS swings back and forth. If there were one way to have non stop growth we'd all know it by now.

When Clinton left office the country was flourishing. 9/11 and Bush's subsequent out of control spending put us back in dire straights. In the meantime, the GOP keep evoking the name of Reagan when in fact he'd be opposed to most of their current decisions.

Blaming Reagan for something he not only caused but would most likely oppose, is as inaccurate as it is unfair.
03:53 PM on 02/06/2011
Reagan's deficits as a % annual GDP were substantially smaller than any rung up since the early 2000s.

The key to reducing the debt and eliminating deficits is spending control and economic expansion. Growing the pie results in more income to tax. We cannot be successful with an either/or approach.
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HUFFPOST PUNDIT
Artemis34
Women can vote against the GOP or against their ow
05:28 PM on 02/06/2011
Thanks you Reagan & Bushes for $9.2 Trillion in debt! 

http://zfacts.com/p/1195.html
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HUFFPOST PUNDIT
Artemis34
Women can vote against the GOP or against their ow
05:20 PM on 02/06/2011
Observing historical facts is not "blaming."  It is observation.
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HUFFPOST BLOGGER
Nelson Montana
Artist, Author, Composer
06:23 PM on 02/06/2011
Not when the facts aren't correct.

I don't want to go back and forth on the merits or lack thereof of Reagan, nor do I want to make comparisons because that's an endless argument. My point was the country recovered that debt. The fact that it fell back into debt cannot be blamed on him. If you want to blame the GOP for implementing similar plans of action at the wrong time, then you've got an argument. But that has nothing to do with the point at hand.
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HUFFPOST SUPER USER
Theophrastus
Stuck in the orgone chamber, again...
09:24 AM on 02/06/2011
I will celebrate Reagan's birthday today by peeing on my shoes and calling it "trickle down" economics.
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HUFFPOST SUPER USER
inorbit
01:36 PM on 02/06/2011
Love your comment - so true!
This user has chosen to opt out of the Badges program
08:18 PM on 02/06/2011
Amen!! I've waited my life to get my "trickle-down" share and all I got was p****d on!
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HUFFPOST SUPER USER
Stokes
08:06 AM on 02/06/2011
(I posted this comment in H-Po on 4-11-2009)
Ronald Reagan has beset this country with grief. I agree with you and have posted comments on H-Po previously referring to GHW Bush as being the core player in efforts to devastate our country by taking away it's sovreignty. Once he is exposed, the pieces of the puzzle will fall into place. I got the inspired writing on Reagan in 1983.
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HUFFPOST SUPER USER
dadw5boys
Disabled Vietnam Vet
07:08 AM on 02/06/2011
What is there to say ? If Americans are not going to rise up and demand the U.S. Government roll back all of Reagan horrible Predatory Capitalist Rules then President Obama can only try and save some of us from ruin since the laws are geared to ruin us all !!!!!!!
UVA1983
Left of left
12:53 AM on 02/06/2011
Finally some truthful commentary on Raygun's mediocrity and quite frankly his ruinous 8 years destroying this country with his tarot-card reading shrew of a wife. I will never refer to National Airport as Reagan National -- it offends me too much.
HUFFPOST SUPER USER
yorkie
12:29 AM on 02/06/2011
Spot on here!!!I say Let's where ever you all live, are,---protest on Reagan's day or the monday! protest in letter's to yr papers,, phone calls flooding radio shows, demanding better from yr Congress and news media as well,,,,,speak out everywhere on this story here and support Pres O and his efforts,,,,,
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HUFFPOST COMMUNITY MODERATOR
23000Days
Life: Tragedy for feelers, Comedy for thinkers.
12:11 AM on 02/06/2011
We had hyperinflation before Ronnie took office, but we had commerce. He put the brakes on that in a hurry! The bottom fell out of the job market instantly.
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HUFFPOST BLOGGER
Nelson Montana
Artist, Author, Composer
01:44 PM on 02/06/2011
Is that why unemployment dropped from 11. 2% to 5.5% during his Presidency?