and under Bush's perpetuation of Reaganomics, the United States went through its
worst economic crisis since the Great Depression. The Romney 2012 thesis state-
ment was nothing other than Bush Tax Cut Economics 101.
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Now, the unemployment rate skyrocketed to 10.8% under Ronald Reagan. Yet, his
postmortem propaganda machine keeps talking of a Reagan recovery. News flash:
Reagan tripled the national debt. The National Debt Ceiling was elevated 18 times
under Reagan. There was NO Reaganomics-style recovery. There was the interven-
tion of democrat Tip O'Neill and republican Howard Baker. Contrary to the conser-
vative assertion, Reagan needed to abandon Reaganomics at mid-stream. He spent
his way out of the 10.8% unemployment rate, even in increasing the size of the feder-
al government.
The Leaves on the Reagan Money Tree Were Hand Grenades
No money was being made by America in any aspect of Reagan's exorbitant mili-
tary spending sprees. This is because all military spending yields negative returns
on investment. In fact, in your first week of economics courses, you learn that mil-
itary spending is a leak from the circular flow of money. During Reagan's term, the
national debt kept rising. Someone else in the future would have to pay for the so-
called recovery. Reagan was the originator of the Ponzi Scheme. The two income
family and the latch-key kid was his legacy, also. In fact, in 1985, the United States
become the top debtor nation on earth, even though it was the #1 creditor nation the
day Reagan took office.
Despite Reagan's attempt to salvage the nation that he was destroying, the average
American's purchasing power dropped, apartment rental prices elevated, the price
of houses rose, the wage rates of skilled tradesmen dropped outside of any federal
Davis/Bacon contract, and the two-income family became the norm, in order for a
family to afford during the Reagan years what a one-income family easily afforded
before Reagan took the oath of office. Thus came the latch key kid ... the neglect-
ed child, thanks to the Reagan.
Throughout this time, the Fed was tightening the money supply, in order to curtail
inflation. Letting the rich horde money was presented as Reagan's economic stim-
ulus package. Two and a half years into his first term came the 10.8% unemploy-
ment rate. His stimulus package backfired. Now, the Bush tax cut resulted in the
2004 federal revenue being the lowest since 1950, when measured as a percentage
of the economy. Then came the disaster of 2008. The Bush tax cut was backfiring,
yet nothing was done to remedy the oncoming crisis. Republicans have a way of
ignoring indicators.
Reagan Increased Taxes, to Compensate for his Original Tax Cut
Reaganomics failed so hideously that Reagan and Congress had to keep raising taxes,
while deleting a pivotal COBRA tax deduction. Reagan still couldn't get the nation's
head above water. A case in fact was that the former steel capitol of the world went
bust under Reagan. The steel mills throughout Pittsburgh closed. Reagan made the
United States weaker. Ironically, during the Reagan years, which were said to be the
years of fiscal responsibility, the salaries of teachers rose. There was no curtailing of
local government spending in that department. Thus came the domino effect of Rea-
ganomics, in as far as concerned compensating for it.
Creating Jobs through Taxpayer Money Is Not Economic Recovery
Do you know one of the techniques that a politician uses to create jobs? ANS: Gov-
ernment and Military Spending. It's the act of taking taxpayer money and throwing it
in programs that give the temporary appearance of national recovery. This included
Reagan's elevated military spending. It quickly got to the point, under Reagan, where
young adults were unable to find jobs. So, many joined the armed forces, solely for
the sake of economic survival. This resulted in the not-so-willful enlistees being tak-
en off the unemployment stats. It was enlistment by duress. In addition, bringing
back millions of lesser-paying jobs to the private sector does NOT constitute eco-
nomic recovery, especially when the money supply is being tightened, in order to
reduce inflation.
Lowering the Tax Rates of the Rich Resulted in Them Paying a Higher Share
Now, the Reaganite theory is that lowering taxes will allow the rich to retain more
money for investment and job creation. Here is the paradox: In 1979, the top 1%
of all income earners paid an 18.3% share of the federal government's income tax
revenue. By the Year 2006, the top 1% were paying a share of 39.1%, and this was
during the Bush tax cut years. Let us remember that the Bush tax cut is of the same
order as the Reagan cuts. The bottom line is that lowering the income tax rates of the
rich didn't free-up any appreciable investment dollars. Economics is more involved
than the tax rates of the rich.
Empowering the Very Communism He Was Said to Have Conquered
In 1986, Reagan opened the door to lopsided trading with a Maoist Dictatorship who
now owns over a trillion dollars worth of the U.S. Treasury Bonds and who also took
away millions of American jobs. Reagan set into motion the selling-out of America to
the Atheist Communist Chinese Dictatorship, in the name of flag-waving, God-fearing
democracy ... Mr. Astrology did this. The Hollywood Commando didn't defeat Com-
munism. He arranged for Communism to defeat America. He was no conqueror. He
was a cowardly spendthrift chicken hawk, acting tough with the blood and money of
others.
The Top Consideration for Today, Economically Speaking
Today, what has to be taken into account is that the post-war baby boom generation
is at or near retirement age. This makes Reaganomics entirely obsolete, especially
if it involves tightening the money supply at the Federal Reserve level. Baby boom
Americans expect to live off of interest-bearing instruments. Well, in order to create
wealth, you have create something of value. Grow something. Manufacture some-
thing. Weave something. Mine something. Paint something. Write something.
Record something. Gather something. Pull a rabbit out of a hat, if need be. Wealth
is NEVER created by shifting around the same units of paper money, bonds, com-
mercial paper that have been shifted in musical chairs games.
The value of any currency ends up shifting its axis in any musical chairs game. This
is the foundation of any unstable economy. In fact, failed debenture bonds accompa-
nied the Great Depression. (Debenture means that no material wealth backs-up the
issued bond.) In as much, taking the manufacturing base out of America sabotaged
the baby boomers' retirement years. In 2008, pensions were already evaporating.
Reagan gave the incentive for corporations to no longer manufacture in United States
territory. Gingrich took the baton and ran the NAFTA route. He might as well have
pushed the average American off a cliff. It would have been no different. This sui-
cide of America was done in the name of Reaganomics.
The goal of Reaganomic propaganda is to con you into thinking that you must let the
rich get richer and free the rich of any regulation which will hold them accountable
for destroying America's environment and pensions. Yet, the rich already became
outrageously rich, while unemployment and gasoline prices rose. This shows that
making the rich richer will only make you poorer. They failed to create the needed
jobs. After all, how many jobs are required to pass around a derivative written on
paper and in entered into a computer account?
It's demand and not the rich which creates jobs. It's shoppers and NOT the wealthy
who create employment. Very simply, if there is no one to buy the product, there
will be no employees hired to sell the product ... or even manufacture it. The praise
of the Hollywood Commando Ronald Reagan is a con game, designed to let greed-
stricken Republicans run wild with the money supply, from overseas bank account
to shining overseas bank account.
The goals of Reagan Propagandists are to: 1} prevent livable-wage laws from pre-
vailing, 2} to have no environmental protection laws, and 3} to be called to zero
legal accountability for their injustices, all the while possessing overseas tax hav-
ens. Such a thing is known as deregulation.
The lack of common sense in the electorate is their strength. The misinformation
of the electorate is their power. An electorate who doesn't think and who only falls
for campaign bumper sticker slogans is their free ride . . . these leeches of sweat-
shop workers throughout the world. In all of their bully pulpit praising of Reagan,
they have one fatal error that entirely negates their praise of the chicken hawk's
style of economics. That is this:
George Bush Economics WAS Reaganomics, and it resulted in the worst economic
crisis since the Great Depression. Therefore, Reaganomics already took America
to the brink of destruction, and it will do so again if it's made into the unchecked
law of the land. In his second term, Reagan had to abandon Reaganomics. Keep
that in mind.
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