This month marked the 30th anniversary of conservative and cultural icon Ronald Reagan's inauguration as our 40th president. Reagan, revered and idolized by conservatives and Tea Party members, is credited for ushering in Reaganomics:
The four pillars of Reagan's economic policy were to:
1.Reduce government spending,
2.Reduce income and capital gains marginal tax rates,
3.Reduce government regulation,
4.Control the money supply to reduce inflation.
The Republican party, in a perpetual state of looking for the next Ronald Reagan, cite Reaganomics as their economic bible. Whether times are hard, prosperous or middle of the rode, cutting taxes and shrinking government is the GOP's mantra. Just read what the conservative think tank Heritage Foundation says about Reagan:
No matter how advocates of big government try to rewrite history, Ronald Reagan's record of fiscal responsibility continues to stand as the most successful economic policy of the 20th century. His tax reforms triggered an economic expansion that continues to this day. His investments in national security ended the Cold War and made possible the subsequent defense spending reductions that are largely responsible for the current federal surpluses. His efforts to restrain the expansion of federal government helped to limit the growth of domestic spending.
Funny thing, stubborn facts stand in the way of blissful and selective amnesia regarding Reagan's tenure.
Reagan the myth vs. Reagan reality
Fact one: Reagan never submitted a balance budget. President Clinton was the first president since JFK to accomplish this feat.
Fact two: Government did not shrink under Reagan's two terms; quite the converse, government dramatically grew.
Fact three: Budget deficits, what Tea Party folks blame on Democratic big government spending, ballooned under the stewardship of Ronald Reagan. In fact, Mr. Conservative himself, former vice-president, Dick Cheney famously stated: Reagan proved deficits don't matter
In summary, Reaganomics was best described by fellow Republican George Bush Sr., as voodoo economics...it robs the poor and middle-class to further reward the most rich.
Excuse me if you don't hear me popping champagne and toasting Ronald Reagan.
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