By the time David Stockman, Reagan’s budget czar, had become disillusioned with supply-side, “trickle-down” economics, the damage had already been done.
The magnitude of the fiscal wreckage and the severity of the economic dangers that resulted are too great to permit such an easy verdict. In the larger scheme of democratic fact and economic reality there lies a harsher judgment. In fact, it was the basic assumptions and fiscal architecture of the Reagan Revolution itself which first introduced the folly that now envelops our economic governance.
The Reagan Revolution was radical, imprudent, and arrogant. It defied the settled consensus of professional politicians and economists on its two central assumptions. It mistakenly presumed that a handful of ideologue were right and all the politicians were wrong about what the American people wanted from government.
File that under “No shit, Sherlock”. I could have told them that. In fact, I did. Anybody could have told them that who wasn’t blinded by the prospect of a trough of money they didn’t have to share with, say, their employees.
Trickle-down was a disaster for everyone in the country except the top 10% of “earners”, seeing as how they made damn sure “trickle” was the operative word. Although the 80’s were a productive and highly profitable time for Wall Street, the rest of us were struggling just to get by. The “trickle” was just that: a mean, tiny drip of the money-pot like a leak in your roof so small you might not notice it for years. The pool stayed at the top, so deep you could have set up a diving board.
The economy – for us ordinary folk, anyway – went so far into the tank after Reagan that Bush I lost his re-election bid due to so many people being out of work and him being so happy about it. They didn’t take kindly to his transparent joy in their financial misery. They threw him out and brought in a Democrat to clean up the mess because Poppy was so “out of touch” (the kindest possible interpretation they could have put on the way he protected the investor class at the expense of the rest of the country).
You’d think conservatives would have learned from all that but apparently not. Continue reading