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Will Bunch

Will Bunch

Posted: February 10, 2009 10:04 PM

Roughly this time a year ago, inspired by the insanity that was the 2008 presidential race, I started working on Tear Down This Myth: How the Reagan Legacy Has Distorted Our Politics and Haunts Our Future. With a target publication date right before the Gipper's 98th birthday (or Reagan Day as modern conservatives have declared it), I did have one nagging worry. What if a decisive election victory last November by Barack Obama and congressional Democrats appeared to slay the Reagan myth for once and for all -- ushering in an Age of Aquarius in which government took a rational view of science, adopted economy policies that would actually help the middle class, and promoted a foreign policy in which our deeds matched our lofty rhetoric.

Silly me! Just like the bell in the Polar Express, the Reagan myth still rings for at least 37 Republican senators and 188 GOP House members, as it does for all who truly believe in the right-wing blather of Rush Limbaugh and Sean Hannity. And it's echoed by a lazy inside-the-Beltway press corps that came of age during the halcyon days of the 1980s and remains falsely convinced that America is a center-right nation, despite a slew of polls and election results to the contrary.

The Reagan myth was sold so successfully to the party's base by the likes of lobbyist and GOP point man Grover Norquist -- who founded the Ronald Reagan Legacy Project in 1997, in the dog days of the booming Clinton-era economy -- that too many Republicans really do believe that a tax cut is the solution to every problem, whether the nation has a budget surplus or a deficit, in times of war or peace, when the economy is booming or when Great Depression II looms.

Before this year's debate, the most bizarre manifestation came in 2003 when the Bush administration pushed through a tax cut even though America was engaged in two wars. Iowa Republican Jim Nussle, who headed the House Budget Committee at that time, explained "the basic playbook" on taxes is the one authored by Reagan, "and that is the one that I follow today." Meanwhile, one study found that nearly three-quarters of the whopping rise of nearly $4 trillion in national debt during the presidency of George W. Bush was attributable to two things: the simultaneous wars in Iraq and Afghanistan and the size of his tax cuts.

When President Barack Obama, both as a 2008 candidate and now as commander-in-chief, declared it was high time to end the folly that tax cuts are the only solution to the nation's woes, this is how South Carolina Sen. Jim DeMint responded: "It's incredible that he said that. It's clear that whether it's John Kennedy or Ronald Reagan or when Bush did this in 2001 and 2003, the economy came out of recession." But the evidence for that argument just isn't there.

In the case of Reagan's massive 1981 tax cut, it did start the great divergence of wealth between the very affluent and the middle class in this country, but it didn't save the American economy, which actually slid into a deep recession the next 15 months. When the economy finally reversed in the mid-1980s, it was the predicted bounce-back in the business cycle (even Reagan's budget chief David Stockman said so), a steep drop in global oil prices, and the inflation-fighting tight-money policies of then-Fed chairman Paul Volcker, an appointee of Jimmy Carter who today is a top adviser to Barack Obama. And yet the Ronald Reagan myth and the hanging-by-a-thread 41 Senate Republicans have foisted a recovery program on America that is too weighed down by more tax cuts, and spends far too little on the nation's crumbling infrastructure, on mass transit, on green energy.

History matters. To set a new economic course for America, Democrats including the Obama administration won't just have to win the daily news-cycle wars of the present. They will need to dig deeper, and recapture the past as well.

 
 
 

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HUFFPOST PUNDIT
TRex86
Enjoying life in West Ohio
10:57 AM on 02/12/2009
Reagan, the former actor, was a likable front man for powerful corporate interests, who served his masters well. His philosophy was cooked up to make the rich richer and shift the cost of government onto the lowest income brackets. His "tax cut" was in fact a transfer of the cost of government onto the regressive payroll tax, which was put into a surplus, allowing the feds to borrow that surplus and use it to offset shortfalls in income tax revenue. He nearly quadrupled the national debt during his two terms.
There is no causal connection between his policies and the economic expansion of the ensuing 25 years. Once interest rates started coming down from their stratospheric levels of the early 80's the rise in value of debt instruments created instant wealth for debt owners like banks and financial institutions. Sadly, Reaganomics sowed the seeds of our current calamity by initiating a long term slide in the real earnings of the lower income brackets, ultimately paving the way for the orgy of borrowing (to finance consumption) that has us on the brink of destruction.
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HUFFPOST SUPER USER
BenMurphyNYC
NY State Young Dem LGBT Caucus Chair
10:21 AM on 02/12/2009
A hypothetical day for a defense contractor:

The contractor starts off his day with a visit to the USS Ronald Reagan aircraft carrier before catching a flight to Ronald Reagan Washington National Airport. From the airport he takes a car to the Ronald Reagan Republican Center on Capitol Hill for a fundraiser followed by lunch a few blocks away at the Ronald Reagan Building and International Trade Building...where the hypothetical contractor chokes on his chicken and is rushed to the Ronald Reagan Emergency Medical Center where he unfortunately dies and some time later his ashes are taken to New Hampshire and spread over Mount Reagan.
schatsie
Wall Street is Worse than Vegas
07:47 AM on 02/12/2009
Thank you so much for addressing this sick and malevolent philosophy because the basic underpinning is that we screw one another and I do not mean that in a good way...

Robert Reich wrote a book 20 years ago about the Reagan myths and I still have that book and look forward to buying this book... We Dems have blood on our hands since we allowed this mess to evolve... Every one KNEW there were toxic asset and a real estate bubble....
06:55 AM on 02/12/2009
Oh for Pete's sake, facts, facts, facts. Don't you realize this is about faith? If you have faith that Reaganism will save us it will. Oh, it won't? Never mind. People forget that Ron was an actor and where that left off and where reality began is anybody's guess. He could deliver a line, and these R clods are still trying to peddle that fluff as how the nation was saved, when it wasn't. Recall Iran-Contra? How many of his folks were prosecuted? He presided over an enormous redistribution of national wealth from the middle class to the wealthy. Where did he announce for re-election? Philadelphia, Mississippi, where civil rights workers were killed.
01:19 AM on 02/12/2009
So your solution is raise taxes? Or spend more money we don't have? If you will do a little research you will find that the years after these types of tax cuts were implemented (Kennedy, Regan, Bush) the Internal Revenue Service actually collected more tax revenues. The reason is simple, if you want to rich to pay more taxes, allow them to make more money. Tax breaks encourage investment, thus creating jobs. Government spending is the problem, and both parties are to blame for that. Creating government entitlement programs on the backs of taxpayers, does nothing to stimulate the economy, and only demotivates people to be successful (why should I get a job if the government will give it to me for nothing). People do things based on incentive. That being said, wealth is only created when we allow people to keep more of what they have earned.
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HUFFPOST SUPER USER
FearlessFreep
A radical leftist with a JS Woodsworth avatar.
01:41 AM on 02/12/2009
The flaw in your argument is the implicit assumption that when economic growth follows tax cuts, the former must be due to the latter (post ergo propter), and that without the tax cuts there would have been zero growth. On the contrary, growth would probably have been almost as great anyway.
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HUFFPOST SUPER USER
timm0
I'm not top 0.01% - so it must be because I'm lazy
08:11 AM on 02/12/2009
It's stunning that people still posit the argument you submit.

Clinton raised taxes and the economy expanded dramatically. That alone disproves these silly, superficial farces that raygun-ites want to perpetuate. The fact is that the economy is NOT tied to tax rates.
11:20 AM on 02/12/2009
If that is the case timmo, I hope you would agree that a flat-tax is the way to go. I think Clinton was a very good president, and you're right, the expansion in the economy had nothing to do with taxes. It had everything to do with the internet and the dramatic rise in technology, which takes nothing away from him as a president. Bill Clinton did however create the begining of the housing bubble. I cite a New York Times article dated September 30, 1999. Please read (google) this before blaming everything on Bush. Both parties are at fault, but the community reinvestment act is largly responsible for Clinton's success as well as this economies failure.
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HUFFPOST SUPER USER
Samalabear
08:50 PM on 02/11/2009
There are too many tax cuts still -- don't pay taxes if you don't have a job! And why haven't the Bush tax cuts been rolled back ahead of schedule? Oh, that's right -- for one, Obama wants partisanship. Well, I hope somebody figures out how to get the mega rich to pay more soon.
12:49 AM on 02/12/2009
The top 5% of wealth earners account for 60% of all taxes paid to the US government. I think that's pretty fair. The wealthy are also the ones who create jobs, not the government or the poor. If the real problem is the need for job creation, then logically it would make sense for the government to allow the wealthy to keep more of their money, so they could build more shops and factories, thus creating more jobs. The alternative would be to tax the rich more, and give it to the poor. This creates nothing in terms of jobs. Learn a demanded skill and make yourself valueable, don't count on the government to solve your problems and take care of your family.
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HUFFPOST SUPER USER
FearlessFreep
A radical leftist with a JS Woodsworth avatar.
01:44 AM on 02/12/2009
Why can't you raise taxes for the rich and use that money to create jobs?
USBrit
And GOP Jesus said, I am come to help the rich.
08:34 AM on 02/12/2009
I personally know two ver ywealthy people, they paty essentially nothing as they make sure to get everything as capital gains which only gets hit for 15% - so no official income. Please do try that old canard again...
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08:24 PM on 02/11/2009
Focus on the real Regan problem, the war on drugs destroying civil liberties. Oops, not on Huntington where our civil liberties don't count.
08:05 AM on 02/12/2009
On what grounds do you make this accusation?
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ThermoChemist
"Forewarned Is Forearmed"
08:12 PM on 02/11/2009
It seems, the more things change...the more they remain the same. (aka. the Reagan redux -- Dubya style)
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"When you can't make them see the light, make them feel the heat." -- Reagan
"The reason we start a war is to fight a war, win a war, thereby causing no more war!" -- Dubya

"All great change in America begins at the dinner table." -- Reagan
"You're working hard to put food on your family." -- Dubya

"All the waste in a year from a nuclear power plant can be stored under a desk." -- Reagan
Dubya "playfully" looking for WMDs at a Correspondents' dinner.

"Going to college offered me the chance to play football for four more years." -- Reagan
Going to college offered Dubya the chance to practice his cheerleading skills (useful for promoting a future Iraq War)

"If we love our country, we should also love our countrymen." -- Reagan
[Not if you listen to Rush's or Coulter's comments]. Let's ask the Dixie Chicks about the ridicule they got.

"It's true hard work never killed anybody, but I figure, why take the chance?" -- Reagan
Seems to be the Republican mantra; as Repub Presidents ALWAYS take the MOST vacation days...!

"One picture is worth 1,000 denials." -- Reagan
Let's check with Rumsfeld about those Abu Ghraib photos.
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mommadona
I paint. I blog. Therefore, I am.
08:31 PM on 02/11/2009
Well said! Nice collection....
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HUFFPOST SUPER USER
Samalabear
08:48 PM on 02/11/2009
So, with quotes like these, tell me why is Reagan considered so great again? Is there a quote for Reagan's stance on AIDS? That alone is something to never forgive this man for. And apparently Reagan made up his "war" record, too, from the research I did. I didn't learn this until I was looking up a quote that Palin used that was attributed to Reagan.
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ThermoChemist
"Forewarned Is Forearmed"
09:40 AM on 02/12/2009
"66 Things to Think About When Flying Into Reagan National Airport"
http://www.thenation.com/doc/19980302/corn

"The firing of the air traffic controllers, winnable nuclear war, recallable nuclear missiles, trees that cause pollution, Elliott Abrams lying to Congress, ketchup as a vegetable, colluding with Guatemalan thugs, pardons for F.B.I. lawbreakers, voodoo economics, budget deficits, toasts to Ferdinand Marcos, public housing cutbacks, redbaiting the nuclear freeze movement, James Watt.

"Getting cozy with Argentine fascist generals, tax credits for segregated schools, disinformation campaigns, 'homeless by choice,' Manuel Noriega, falling wages, the HUD scandal, air raids on Libya, 'constructive engagement' with apartheid South Africa, United States Information Agency blacklists of liberal speakers, attacks on OSHA and workplace safety, the invasion of Grenada, assassination manuals, Nancy's astrologer.

"Drug tests, lie detector tests, Fawn Hall, female appointees (8 percent), mining harbors, the S&L scandal, 239 dead U.S. troops in Beirut, Al Haig 'in control,' silence on AIDS, food-stamp reductions, Debategate, White House shredding, Jonas Savimbi, tax cuts for the rich, 'mistakes were made.' "

OpEd writer Joe Strupp wrote "...the overwhelming praise for a president who plunged the nation into its worst deficit ever, ignored and cut public money for the poor, while also ignoring the AIDS crisis...slashing federal grants for poor students and cutting survivor benefits for families of the disabled."

http://www.actupny.org/reports/reagan.html
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HUFFPOST SUPER USER
Dukedraven
07:28 PM on 02/11/2009
Politically, I felt like the '80s were a lost decade. The only good part came when the Cold War ended, and I never gave Reagan credit for that either. It's strange how even some Democrats revere Reagan, which I can't figure out why.
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HUFFPOST SUPER USER
FearlessFreep
A radical leftist with a JS Woodsworth avatar.
01:43 AM on 02/12/2009
Because they think it'll make them look "balanced." But it just makes them look weak.
08:08 AM on 02/12/2009
If anyone deserves the credit, it's Gorbechev, who is not very popular in Russia, but continues to be an active statesman.
06:30 PM on 02/11/2009
Please shout this from the roof tops! Maybe you can drown out Limbaugh and Hannity, two men with no sense and too much credibility.
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SEQUOIABISON
President of the Sequoia Bison Society a non profi
05:25 PM on 02/11/2009
Excellent article Mr Bunch, I look forward to reading your book.

I am so glad that someone took the time to disarm the Reaganites and burst their mythological bubble regarding their love affair with the trickle down theory.

No matter what the problems facing our nation, the only solution the Reagan folks ever come up with are tax cuts, need a cure for cancer, no problem, tax cuts, unemployment raging out of control, no problem, tax cuts, need to end poverty in America, tax cuts, want to end wars forever, you got it, tax cuts.

I have always been extremely annoyed by their hatred of government, which in an elected representative government, is actually hatred of we the people, and their simplistic ideological approach to governing, in essence these Reagan, Rush, Hannity types are basically, greedy, selfish Americans who believe strongly in every person for themselves, once they have climbed the ladder to success, they want to remove the ladder that helped get them to the top.

Finally, we are on the path to a more egalitarian society, where we now realize that we are stronger as a nation when we are united as a people. It will not be easy to stay on this path as the GOP Reagan Ideologues are putting every obstacle imaginable in our way to try to save their avaricious, self centered corporate welfare, corrupt philosophy, thank goodness we now have an intellect with compassion for all Americans, in the white house.
05:24 PM on 02/11/2009
For years the republican have chanted the mantra of Regan - Tax Cuts, Tax Cuts. The economics of the U.S. as well as the rest of the world has changed but not the mantra for the republican Tax Cuts, Tax Cuts. The republican can believe this is the answer and put Regan on a throne as the savior of the party - it’s easier to hold on to that belief then to actually adapt to the changing world today. I have read most of the comments and now I know that I am not alone in my opinion of Ronald Regan. For the republicans it’s easier to attack all those who do not agree with them in order to save face in time of crisis, then to take the time to truly understand very complex issues in very complex times this is the reason the Republican Party is out of touch with the U.S. and the rest of the world. I believe their answer to today problems is to Cut Taxes and start a 3rd war.
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Erdgeist
per omnia extrema
04:48 PM on 02/11/2009
Reagan's reign of error and corruption...

"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.liberalslikechrist.org/about/Reagan.html
08:10 AM on 02/12/2009
The indictments are not all in on the Bushies.
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04:34 PM on 02/11/2009
...ronald reagan was so vapid and shallow that he served as a rorschach card and surrogate "daddy persona" for all these still fawning repubs....."the father knows best" synsdrome in politics...and oh yeah, he did tangibly do an effective job stroking and stoking the racism thast makes so many middle and working class whites die-hard republicans to thsi day...
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HUFFPOST BLOGGER
Melissa Rossi
04:31 PM on 02/11/2009
Interesting! I spent two days interviewing Grover Norquist for my book What Every American Should Know about Who's Running America. Charming man (even though we're on other sides of the political spectrum). He devised idea of "tax cuts to save the GOP" when age 14, on the school bus, pondering fate of the party. (see page 101).

Reagan also spawned the neocons, and their ideas (high tech military, global hegemony) that got us into so much trouble over past 8 years.

But while Reagonomics (and the neocon ideas he made possible) live on, an every darker shadow is 9/11. I'm calling for Obama to reopen the investigation. http://www.huffingtonpost.com/melissa-rossi/obama-reopen-the-911-inve_b_165849.html

Cite you here, Will: http://www.huffingtonpost.com/melissa-rossi/obama-reopen-the-911-inve_b_166025.html