WSJ Article Reagan Insider

[mikegideon]

Reagan insider: GOP destroyed economy Paul B. Farrell - MarketWatch

ARROYO GRANDE, Calif. (MarketWatch) -- "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."

Get it? Not "destroying." The GOP has already "destroyed" the U.S. economy, setting up an "American Apocalypse."

Yes, Stockman is equally damning of the Democrats' Keynesian policies. But what this indictment by a party insider -- someone so close to the development of the Reaganomics ideology -- says about America, helps all of us better understand how America's toxic partisan-politics "holy war" is destroying not just the economy and capitalism, but the America dream. And unless this war stops soon, both parties will succeed in their collective death wish.

But why focus on Stockman's message? It's already lost in the 24/7 news cycle. Why? We need some introspection. Ask yourself: How did the great nation of America lose its moral compass and drift so far off course, to where our very survival is threatened?

We've arrived at a historic turning point as a nation that no longer needs outside enemies to destroy us, we are committing suicide. Democracy. Capitalism. The American dream. All dying. Why? Because of the economic decisions of the GOP the past 40 years, says this leading Reagan Republican.

Please listen with an open mind, no matter your party affiliation: This makes for a powerful history lesson, because it exposes how both parties are responsible for destroying the U.S. economy. Listen closely:

Reagan Republican: the GOP should file for bankruptcy

Stockman rushes into the ring swinging like a boxer: "If there were such a thing as Chapter 11 for politicians, the Republican push to extend the unaffordable Bush tax cuts would amount to a bankruptcy filing. The nation's public debt ... will soon reach $18 trillion." It screams "out for austerity and sacrifice." But instead, the GOP insists "that the nation's wealthiest taxpayers be spared even a three-percentage-point rate increase."

In the past 40 years Republican ideology has gone from solid principles to hype and slogans. Stockman says: "Republicans used to believe that prosperity depended upon the regular balancing of accounts -- in government, in international trade, on the ledgers of central banks and in the financial affairs of private households and businesses too."

No more. Today there's a "new catechism" that's "little more than money printing and deficit finance, vulgar Keynesianism robed in the ideological vestments of the prosperous classes" making a mockery of GOP ideals. Worse, it has resulted in "serial financial bubbles and Wall Street depredations that have crippled our economy." Yes, GOP ideals backfired, crippling our economy.

Stockman's indictment warns that the Republican party's "new policy doctrines have caused four great deformations of the national economy, and modern Republicans have turned a blind eye to each one."

Stage 1. Nixon irresponsible, dumps gold, U.S starts spending binge

Richard Nixon's gold policies get Stockman's first assault, for defaulting "on American obligations under the 1944 Bretton Woods agreement to balance our accounts with the world." So for the past 40 years, America's been living "beyond our means as a nation" on "borrowed prosperity on an epic scale ... an outcome that Milton Friedman said could never happen when, in 1971, he persuaded President Nixon to unleash on the world paper dollars no longer redeemable in gold or other fixed monetary reserves."

Remember Friedman: "Just let the free market set currency exchange rates, he said, and trade deficits will self-correct." Friedman was wrong by trillions. And unfortunately "once relieved of the discipline of defending a fixed value for their currencies, politicians the world over were free to cheapen their money and disregard their neighbors."

And without discipline America was also encouraging "global monetary chaos as foreign central banks run their own printing presses at ever faster speeds to sop up the tidal wave of dollars coming from the Federal Reserve." Yes, the road to the coming apocalypse began with a Republican president listening to a misguided Nobel economist's advice.

More at the link...

[Guest CrazyLincoln]

Interesting article, however, I think more appropriately "Politics" destroyed the economy. The one common link between the two policies is spending. The Democrats are "tax and spend", but they spend more than we as a nation can afford, so we are taxed more than we can afford. The GOP, on the other hand, has become a "cut taxes and spend" party, so we just go into debt. Now, if this country could get some politicians who cut spending and taxes, we would have a prosperous economy.

The problem is its too easy to spend when it's someone else's money.

[Daniel]

No one else has anything to say about this? Really?

[Guest Lester Weevils]

Guns AND Butter got rolling big-time with Johnson, though it had been a looming problem from way back before. Johnson fought the war on poverty and the vietnam war and the cold war while also conquering space. No wonder we got stagflation into Nixon and Carter years. Nixon and Carter were saddled with Johnson's mistakes, and didn't roll it back. Actually the presidents couldn't do much of anything without complicity of congress.

If you cut taxes ya got to cut spending. Duh. The article seems to blame tax cuts more than the lack of spending cuts.

Congress is responsible for taxing and spending. Presidents can only cajole or veto. From the Johnson era to present, Democrats and Republicans have had congressional majority a nearly equal numbers of years. I tabulated the percentages a couple of years ago, so if you have doubt I could look up the exact figures.

So it is everybody's fault, and we can blame whoever was previously in charge going back to Adam and Eve.

Libertarians think it is better for individuals to spend their own money rather than the govt spending it for them. But tax cuts have to match with spending cuts.

Balanced Budget Amendment - Wikipedia, the free encyclopedia

[Guest 6.8 AR]

No one else has anything to say about this? Really?

What are your thoughts on the article?

[Guest 6.8 AR]

I think Paul Farrell thinks he is Paul Krugman

[mikegideon]

I'll tell you why I posted it. There are so many that believe that if the Republicans are returned to power, that everything is gonna be alright. We (the pawns), pick the set of lies we like best, and then continue to support the destruction. We're screwed. We can't fire and replace enough people to fix it.

[Mike.357]

There are so many that believe that if the Republicans are returned to power, that everything is gonna be alright.

We're screwed. We can't fire and replace enough people to fix it.

You got that right. The Republicans are NO better than the Dem's.

The only way I see things getting fixed is if we as a nation burn down Washington and start over on our own volition, or if Atlas shrugs and we start over because there is no other option. Of course if Atlas shrugs there will be a lot less of us here to worry about it all.

[Guest KimberChick]

I'll tell you why I posted it. There are so many that believe that if the Republicans are returned to power, that everything is gonna be alright. We (the pawns), pick the set of lies we like best, and then continue to support the destruction. We're screwed. We can't fire and replace enough people to fix it.

I'll leave it as that so as not to rant on about this...

[greenego]

I'll tell you why I posted it. There are so many that believe that if the Republicans are returned to power, that everything is gonna be alright. We (the pawns), pick the set of lies we like best, and then continue to support the destruction. We're screwed. We can't fire and replace enough people to fix it.

These are the truest words in this post.

[Guest 6.8 AR]

I'll leave you with this, Mike and Mike. It's not a good thing to generalize about the republicans

when it may be better suited to the democrats. There are republicans and libertarians that

genuinely wish to do just that:Cut taxes and reduce spending. There are just not enough of

them. Blanket statements usually do nothing more than increase cynicism and we really don't

need more of that.

There are progressives in both parties and if they were rooted out, in both parties, we might

see a better day. Until then, we're stuck with the McCains,Grahams, Shumers, Boxers and the

like. They spend it like it is theirs to take. Trouble is, we let them.

I'll stick with the Tea Party and most republicans(conservatives) any day.

It's lunch time!

[mikegideon]

Trouble is, we let them.

!

No... we can't stop them. For your statement to be valid, It would require some folks to tell the truth. You get lied to all the time, and you pick your favorites. We all do.

[Guest 6.8 AR]

All I know for a fact is, I'll never give up. I wish more people would do the same.

Apathy and cynicism let the evil rule. When evil bubbles to the surface, it usually

shows its cowardice and can be easily defeated.

We, the people, let this happen and the same can take it back, when we finally

have the resolve.

The evil is being exposed daily and it will happen, because I know there are enough

people that think the same way. They are showing up every day. It's never too late.

[mikegideon]

The evil is being exposed daily and it will happen, because I know there are enough

people that think the same way. They are showing up every day. It's never too late.

Yes it is. You and I will probably wind up with different lists every day. The scary thing... we're probably both right.

[Guest SUNTZU]

“The argument that the two parties should represent opposed ideals and policies, one, perhaps, of the Right and the other of the Left, is a foolish idea acceptable only to doctrinaire and academic thinkers. Instead, the two parties should be almost identical, so that the American people can ‘throw the rascals out’ at any election without leading to any profound or extensive shifts in policy” (Georgetown University Professor Carroll Quigley, Tragedy and Hope, 1966.)

[mikegideon]

“The argument that the two parties should represent opposed ideals and policies, one, perhaps, of the Right and the other of the Left, is a foolish idea acceptable only to doctrinaire and academic thinkers. Instead, the two parties should be almost identical, so that the American people can ‘throw the rascals out’ at any election without leading to any profound or extensive shifts in policy†(Georgetown University Professor Carroll Quigley, Tragedy and Hope, 1966.)

Unfortunately, both parties strive to be total opposites, at least in their efforts to collect voters.

[Guest SUNTZU]

Unfortunately, both parties strive to be total opposites, at least in their efforts to collect voters.

More people are catching on thanks to the internet and people with their video cameras on their phones. Both parties just took this a bit further and decided to present themselves as standing for opposed ideals and policies instead of actually representing opposed ideals and policies. Either way, both parties have been almost identical for some time now. That is what "reaching across the aisle" gets you.

Come November, when there are a lot of new faces in D.C., but people realize that the direction of the country isn't changing, REGARDLESS of policy changes, then hard times will be upon each and every one of us. If there are reversal of Obama's policies at that time, think how loudly the cries of racism will be then. Even though it will still be an atmosphere of greed and striving for power. We'll have a new master but still be in the same field. Don't see much hope of getting back to a limited government.

[mikegideon]

Come November, things will change. Who knows if it will be for the better. It's our job to provide their play money, and it's their job to use it for whatever they want. In the process, they'll continue to put up the smoke screen.

Take immigration. It's been on the table for decades, thru several cycles of Dem and Repub power. The smoke screen... Obama won't fix it. The real deal... Nobody will fix it, because they don't want to.

[Guest 6.8 AR]

More people are catching on thanks to the internet and people with their video cameras on their phones. Both parties just took this a bit further and decided to present themselves as standing for opposed ideals and policies instead of actually representing opposed ideals and policies. Either way, both parties have been almost identical for some time now. That is what "reaching across the aisle" gets you.

Come November, when there are a lot of new faces in D.C., but people realize that the direction of the country isn't changing, REGARDLESS of policy changes, then hard times will be upon each and every one of us. If there are reversal of Obama's policies at that time, think how loudly the cries of racism will be then. Even though it will still be an atmosphere of greed and striving for power. We'll have a new master but still be in the same field. Don't see much hope of getting back to a limited government.

This could very well happen and I don't want to let it,

but it takes a large voice to change things and it takes time to undo mistakes. If we don't stand up and say

something, it's our fault then.

I don't have a problem with another party replacing one

of the two. Maybe it's time.

Sent from my iPhone using Tapatalk

[mikegideon]

This could very well happen and I don't want to let it,

but it takes a large voice to change things and it takes time to undo mistakes. If we don't stand up and say

something, it's our fault then.

I don't have a problem with another party replacing one

of the two. Maybe it's time.

Sent from my iPhone using Tapatalk

Doing the right thing requires some personal sacrifice from our elected officials. They may have to give up some votes, especially with the 24 hour "news" organizations turning every little thing into a world changing event. The general public has less chance to see thru the BS now than they ever have.

[Guest 6.8 AR]

Doing the right thing also requires us to get the

right elected officials. We haven't been doing so well

on that for a while. When the right officials get there,

it os still up to us to keep them on track or get rid

of them, instead of bitching about all of them.

Focus on fixing one or the other, but don't give up.

Sent from my iPhone using Tapatalk

[mikegideon]

Doing the right thing also requires us to get the

right elected officials. We haven't been doing so well

on that for a while. When the right officials get there,

it os still up to us to keep them on track or get rid

of them, instead of bitching about all of them.

Focus on fixing one or the other, but don't give up.

Sent from my iPhone using Tapatalk

I think we had the right guy for governor, and he wasn't slimey enough to get elected. The cards are just stacked against us.

[Guest 6.8 AR]

“The argument that the two parties should represent opposed ideals and policies, one, perhaps, of the Right and the other of the Left, is a foolish idea acceptable only to doctrinaire and academic thinkers. Instead, the two parties should be almost identical, so that the American people can ‘throw the rascals out’ at any election without leading to any profound or extensive shifts in policy†(Georgetown University Professor Carroll Quigley, Tragedy and Hope, 1966.)

Suntzu, the fatal flaw with Professor Quigley's statement is that there are some out there

that will find a gap and lead a willing mass back into responsibility, as opposed to just accepting

one or both parties as the norm. It may take a civil war to accomplish it, but that has happened

before.

i will read more of Quigley, but right now I have too much Heinlein to play catch up on:D

That was a wonderful book. Opened up a lot in me. Thanks!

[Guest SUNTZU]

Suntzu, the fatal flaw with Professor Quigley's statement is that there are some out there

that will find a gap and lead a willing mass back into responsibility, as opposed to just accepting

one or both parties as the norm. It may take a civil war to accomplish it, but that has happened

before.

i will read more of Quigley, but right now I have too much Heinlein to play catch up on:D

That was a wonderful book. Opened up a lot in me. Thanks!

Quigley turned around and denounced a lot of what he supported when he was younger. Next time you're at a diner ask someone who ACORN is or SEIU. Most people don't know. But they do know who the Vols starting QB is going to be or how many runs so and so scored last night. People scan the headlines as they check out or read a quick blurb in the paper followed by an opinion piece that is sure to get published over a retort. Once they've read that, they KNOW the TEA party groups are racists and that Arizona is ran by the KKK because its in the paper...now where's the sports section and did you see Dances with the Stars last night?

The vast majority of young people are pissed at the system and the Progressives let them know who is to blame. They point out the window at a group of people as they drive into a wall. And they don't realize it and know better than you. Its the hand sanitizer generation that is afraid of everything but they are also a bunch of mouthbreathers who don't realize that the damn house is on fire. The younger generations are tied to their mother's aprons due to those mothers watching daytime T.V. telling them what they need to do, think, feel, and act. The younger generations have this reinforced with shows geared towards them. The only shows telling them to rebel against their parents thinking point them to Progressive ideals. Don't believe me? Sit down and watch MTV for the weekend. Enjoy those four music videos and try to keep from putting an Obama bumper sticker on your car. There will be more people turning other people in than working to return these United States back to their former glory.

Nah, never happen here! Hand me the sports page, NASCAR results are in.

Edited August 19, 2010 by SUNTZU

[mikegideon]

It ain't just the progressives that have spun up some good yarns. You're right that the general public doesn't know or care. THAT's the problem that can't be fixed.