Skip to comments.Reagan insider: 'GOP destroyed U.S. economy'
Posted on 08/11/2010 1:03:09 PM PDT by Recovering_Democrat
"How my G.O.P. destroyed the U.S. economy." Yes, that is exactly what David Stockman, President Ronald Reagan's director of the Office of Management and Budget, wrote in a recent New York Times op-ed piece, "Four Deformations of the Apocalypse."
(Excerpt) Read more at marketwatch.com ...
Is Stockman right? Partially? Wholly? I want some input from my fellow FREEPers.
He should be more specific....
David Stockman should be still...and he’s wrong.
Looks like he didn’t learn anything from being ‘taken to the woodshed’ by Reagan for his stupid comments back then.
How did I know it would be Stockman before I even read a word?
Compared to the unrepairable damage Obama is causing - no. Stockman is an idiot. He got sued because the private equity deal he put together fell apart.
LOL, David Stockman.
That scumbag was fired by Reagan, wasn’t he? In any event, he has been a laughingstock for over 2 decades. He’s a “Republican” like David Gergan is a “Republican”.
If you read Reagan’s memoirs, he basically says that Stockman was a thorn in his side. Of course, Reagan was much too classy to outright say that.
He stabbed Reagan in the back
He is right about what went wrong.
He is wrong about it was only the right.
As soon as I read the headline I muttered to myself, "Has to be that steaming pantload Stockman."
And of course it WAS!
Recriminations are pointless. Let’s look forward. Republicans need to gain power and they need to immediately start dismantling this Federal nightmare that has been growing for 50 years. If they don’t then God help us.
I think a once relevant guy is simply saying what he knows will garner him MSM coverage.
I remember an old political cartoon from the 1980s involving Stockman and Reagan. It showed Nancy Reagan holding the bridle of a horse while Ronald Reagan was pointing to the horse’s tail. The caption read “You know Nancy, this end kind of looks like Stockman, too.”
Summed up Stockman perfectly.
Stockman is a jerk.
And of course, as bad as those four decades of over-spending were, Obama has already outdone them in less than two years. No mention of that at all? Strange indeed.
He sure don’t sound like a Reagan insider.
Nixon did dump gold, and, when the Republicans finally got control of the house and Senate they did NOT cut spending.
I don't agree with him about the military at all, and our history emphatically demonstrates the risk we put ourselves in by reducing our military.
As for the financial markets, he is partially right. While the Republicans had the control, they did nothing to reign in the thieves at Goldman Sachs, did nothing to investigate the stupidity of the bi-partisan legislation that created the banking mess, and prosecute the liars and cheaters on both sides of the aisle.
The DemocRATs are more guilty, but only by a measure. Blame can be spread around to our politicians widely.
For what it’s worth, I think his criticism is on target. We have taken some of the worst policies of both parties and set up the coming collapse. Raising taxes would get my support if every cent was matched by deficit reduction. The economy would slow or even shrink, but continuing expansion on borrowed money is no longer an option and the downturn will either be hard but short or softer but much longer. I’m for ripping of the bandage and getting it over with before the generations responsible leave the scene to leave all the suffering to those that follow. Hard times and character building are overdue.
Some one is looking for a job in DC.
Just because he worked for Ronald Reagan doesn’t mean he’s not unfriendly toward Republican principles.
Three words....SANDRA DAY O’CONNOR!
Tax cuts combined with deficit spending bring in more revenues (and create bubbles), but the deficit climbs and and the interest accrues until it can no longer be sustained.
Given the weak and wobbly Republicans in the House, the Dems rolled them too and had effective control over all fiscal policy since mid-2001.
Exhibit B: The administration of President George W. Bush attempted to the GOP Congress to reform Fannie and Freddie in 2004. Bwaney Frank, Maxine Waters, Gregory Meeks, Christopher Dodd, et. al. PREVENTED THE NECESSARY REFORMS.
Irrelevant cadaver alert.
I know he's not a math major but 2010 - 40 = what?
old trick of the left.
pretend to be a republican and then denounce them
pretend to be a republican and then put down GOP ideas and say they are too radical now.
pretend to be a republican and then when asked by a media outlet about the GOP say they have become too radical and you will vote for the Dems for the first time in your life.
Did the tactic to a bunch of left wing kooks last weekend and said I could never support the Dem party any more as has turned socialist .
The looks on their faces was priceless
Effing rat faced little putz bastard...still
You know not one of them voted for PORKULUS? Give some credit to the House Republicans. They stood their ground on most things.
Bottom line is that we spend money we don’t have - it is silly to pin that on one party.
The problem is not the left puppet or the right puppet. Problem is the man behind the curtain.
Who loves debt?
Democrats? Republicans? State Governmemnt? Federal Government? Foreign Governments? Consumers? Average American?
Who doesn’t let us live within our means? Who forces wars which can be avoided? Who finances infinite wars? Who steals from Government? How do Trillions get un-accounted for, simply stolen? Who can steal trillions and hide it from Government? Who plots and plans to separate Average American from their wealth? Who doesn’t like wealth accumulation, albeit small in comparison, by average American?
Who is hell bent determined to impose a new gynormous Carbon Tax? How would we pay for it? Is anything going to be cut to pay for it? Why are Bankers taking postions so they can trade carbon credits? How do carbon credits prevent pollution?
Name ALL the entities in the world that BENEFIT from DEBT?
You would only come up with one.
No one talks about the offsets by the local and state governments when the ‘tax cuts’ were enacted. The tax liability increased on the rich while the bottom quintile actually profited by about 7.5%.
Let’s end the tax cuts for ALL but also end the ‘other’ fees and taxes at the same time. Does anyone actually believe the ‘rich’ will stand still for the 60%+ coming soon?
(’Hauser’s Law’ in force no matter what the rates are!)
Probably friends with Souter. Reagans biggest mistake.
When the GOP played along with the Jacobin themes of the Democrats — yes. Stockman’s right.
The truth is that deficits did soar under Reagan. It is also true that some of the reason, though by no means all, was military spending.
Reagan's party controlled one house of congress (the U.S. Senate) for a mere two years during his eight years in office, and only by the narrowest of margins.
Yes, there were more patriotic Democrats in office then who could occasionally be persuaded to do the right thing, but there were also more RINO Republicans.
Reagan's main purpose for increasing military spending was to defeat the Evil Empire. He let a lot of unrelated deficit spending go unchecked as part of the political price he felt he had to pay to achieve his main purpose, which he did before he was out of office for one year.
Stockman ought to compare the cost of such deficits with the costs of a shooting war.
The United States reaped a substantial peace dividend from Reagan's decision to confront the Soviet Union, a divided which was wholly p*ssed away by the Bush/Clinton/Bush administration's increases in entitlement spending.
I won't detail all those entitlements here, but they were a lot more than sinking money into rebuilding two, largely ungrateful Muslim countries.
And still, the accumulated deficits of all these administrations plus all the previous administrations were eclipsed by Obama's administration deficit spending requests approved by his rubberstamp congress in just his first 18 months! If Stockman thinks that key detail is irrelevant, then he's smoking something which is illegal.
I've also got to wonder about the particular timing of his hit piece. Is he not getting enough invitations for the Washington Cocktail Circuit to massage his ego?
Gee, don’t you have anything from Howard Dean? Or Colin Powell? Or David Brock?
Souter was a Bush 41 appointee (recommended by John Sununu).
Anthony Kennedy was appointed by the Gipper (after Bork got borked).
Was Bush a Big Government Republican, damn right he was.
Remember Stockman is yelling at the Republicans for not cutting spending while they cut taxes. Fair point. Christie is cutting spending, and you have to have a revolution to do this. It is the hard decision and we need to do it. While the Democrats are in power - it will be harder and harder, a greater percentage of individuals not paying income taxes, now health care is a right rather than a cost of living, and we are living in a growing orgy of entitlements that will be difficult to shut down.
Unemployment benefits are extended and people have stopped looking for work while this cash still comes in.
Many blue states are walking bankruptcies, pensions are out of control, businesses are fleeing these states - Michigan, California, NY, NJ, take a bow.
I was disgusted at Stockman’s little class warfare game - that’s the moron model - blame the rich for making it. Yeah - blame the people who create the jobs. It scares me because that attack means he doesn’t understand where the jobs come from? Who builds America? The risk takers, the businesspeople who put everything on the line.
I agree with your point (not too popular here) on giving credit where credit is due to the House GOP as to their recent behavior. Here, I’m speaking mostly to the period 2001 - 2007 when they had the majority and did nothing with it.
Don’t expect much more than shoot the messenger.
Policies that result in China financing America is the bottom line of economic failure.
Good. That figures. He must of been a mole.
Stockman has the view, like all bureaucrats, that Gov’t spending and deficits have absolute priority - and our taxes should rise simply basis Gov’t need.
As to massive spending on wars, Gov’t and entitlements being unstoppable, and Gov’t needing something out of their control to force discipline on them - he is correct.
That outside discipline? Shut down the Federal Reserve. The Federal Reserve has allowed Gov’t to finance its schemes, with stealth taxes of inflation and devaluation and debt. Shut down the Fed, and the Govt spending is immediately controlled.
“Some one is looking for a job in DC.”
Someone is looking for a Nobel Prize in Economics. Soon this guy will be all over the news, bashing Republicans. Funny how he has little to say about the DemocRATS HUGE tax and spend policies, the growth of the welfare state, entitlements, govt workers, etc.
Where Stockman fails is that he talks about the tax cuts in Democrat terms. Why not talk about cutting govt because that is where the debt comes from. We have a govt that has grown into a monster. We can’t get into the “its only 3% for fat cats” crap. We need to get into the lets cut govt across the board to bring the debt down permanently.
Anyone that believes this garbage is an idiot.
Well Im sorry to say while his point on principle is valid; this is a hit piece overall the title is wrong and should read, Keynesian Economics is a Failure even after a facelift of the last 40 years.
None of this happened in a vacuum, David Stockmans own words points this out:
extend the unaffordable Bush tax cuts- [tax cuts have not proven to cause declines]
The nation’s public debt ... will soon reach $18 trillion- true see http://www.usdebtclock.org/]
printing and deficit finance
“serial financial bubbles and Wall Street depredations that have crippled our economy.”
His lie on Friedman regarding that the public caused the borrowing/spending- [not it was the political class as always!]
extraordinary growth of our public debt
Budgets to be “matched by spending cuts, to offset the way inflation was pushing many taxpayers into higher brackets and to spur investment. The Reagan administration’s hastily prepared fiscal blueprint, however, was no match for the primordial forces — the welfare state and the warfare state — that drive the federal spending machine.”- [Congress did this not Reaganomics]
This is a long con and distraction being placed on Reaganomics as the villain, so the political class can continue their free ride.
I agree with Stockman about 60% especially about pointless speculation on Wall Street where the big players get bailed out by the Feds/taxpayers
I agree with Stockman about 60% especially about pointless speculation on Wall Street where the big players get bailed out by the Feds/taxpayers
Well the GOP has done a lot wrong.
But the Dems even more so...
Both parties have been an economic disaster.
They spend, spend, spend...
And that is the root of the problem.
Stockman wants to increase taxes on the wealthy as a result of all that spending. The thing is, jobs come from those wealthy people. Increasing taxes will continue to destroy jobs and in not much time we’ll be just like Europe with no middle class because few can pass through the high tax barrier which is essentially all on income, not wealth.
Up to a point that is true. At some point, it is not. We know, for instance, that cutting tax rates to zero will not result in increased tax revenue.
The key problem is that it has never been politically possible to cut taxes to the point that we've ever been able to find the optimum rate of taxation. Most of the brighter free market economist believe that rate is somewhere in the high single digits or low teens.
There is also a trade-off between taxes and regulation. At some point, the market would respond better to decreased regulation or fewer government mandates than they would respond to decreased tax rates.
A good economist will recognize both idiotic government mandates/regulations and sensible regulations as an indirect tax.
Businesses who can impose their costs on the public at large need to be regulated against acting irresponsibly to the overall public good, even though it means an effectively higher tax rate is imposed. A company dumping their toxic waste into the public water supply is one such example. A company allowed to hire illegal aliens is another.
Well said and thank you.