REAGANOMICS. "Individual freedom and the profit motive were the engines of progress which transformed an American wilderness into an economic dynamo that provided the American people with a standard of living that is still the envy of the world." .
of progress which transformed an American wilderness into
an economic dynamo that provided the American people with
a standard of living that is still the envy of the world."
“Recession is when your neighbor loses his job.
Depression is when you lose yours.
Recovery is when Jimmy Carter loses his.”
• Tax Cuts
• Reduce Federal Spending
Military Build-up as Economic Stimulus
banks blur in
terms of who gets credit, how much, in what form
and for how long. Impacts commercial lending,
credit cards, checking accounts, etc.
takeovers, junk bond trading, leveraged
The Holy Grail
Dismantle the Welfare State!
• Cuts to Social Welfare Programs
• Unfunded entitlements
“Welfare queens picking up checks in their Cadillacs.”
It’s the war on poverty that led to this.”
• Under-Funded Entitlements (e.g., Medicare, Social Security, etc.)
• Unfunded Mandates (e.g., education, welfare, ESL, Psych treatment)
• Degraded Infrastructure (e.g., airports, highways, parks, etc.)
• Cuts in R&D (e.g., science, humanities, etc.)
Step 1: Cut taxes
Step 2: Now there is no money for services
Step 3: Underfunded government
Step 4: “Government isn’t the
solution; government is the
Step 5: Cut taxes further…..
Step 6: Confidence in government plummets
• Unfunded mandates
• Burden shifts to states on
• Social Welfare
Regressive state taxes (e.g., sales, property,
licensing, etc.) favor the rich
Poverty Rate 1985 = 14%
From 5% to 8% of GDP
• Economic Miracle?
• More efficient
• 8-year economic
• Based on defense
• New breed of billionaire
• Union Busting
• Loss of Manufacturing Jobs
• Declining Standard of Living
• Mid-century sense of
• Hippie anti-materialism?