Yes, morons, Ronald Reagan did have a stimulus package.

Thursday, February 5th, 2009 @ 9:05 pm | Uncategorized

All in all Ronald Reagan sent 1.5 trillion dollars to the Pentagon who then distributed it amongst the aerospace, steel, information technology, and all of their inter-related industries.   Basically, Reagan created what’s called an artificial demand.  And he didn’t stop there.  In fact, Ronald Reagan was the most protectionist president of all time. During the 1980′s he:

  • Forced Japan to accept restraints on auto exports;
  • Tightened considerably the quotas on imported sugar;
  • Negotiated to increase the restrictiveness of the Multi­fiber Arrangement governing trade in textiles and apparel;
  • Required 18 countries, including Brazil, Spain, South
  • Korea, Japan, Mexico, South Africa, Finland, Australia, and the European Community, to accept “voluntary re­straint agreements” that reduce their steel imports to the United States;
  • Imposed a 45% duty on Japanese motorcycles for the ben­efit of Harley Davidson, which admitted that superior
  • Japanese management was the cause of its problems;
  • Raised tariffs on Canadian lumber and cedar shingles;
  • Forced the Japanese into an agreement to control the price of computer memory chips;
  • Removed third-world countries on several occasions from the duty-free import program for developing nations;
  • Pressed Japan to force its automakers to buy more Ameri­can-made parts;
  • Demanded that Taiwan, West Germany, Japan, and Switzerland restrain their exports of machine tools;
  • Accused the Japanese of dumping roller bearings on grounds that the price did not rise to cover a fall in the value of the yen;
  • Accused the Japanese of dumping forklift trucks and color picture tubes;
  • Extended quotas on imported clothes pins;
  • Failed to ask Congress to end the ban on the export of Alaskan oil and timber cut from federal lands;
  • Redefined dumping so domestic firms can more easily charge foreign competitors with unfair trade practices;
  • Beefed-up the Export-Import Bank, an institution dedicated to distorting the American economy at the ex­pense of the American people in order to artificially pro­mote exports of eight large corporations.
  • Nationalized Continental Illinois and Penn State bank because they were “too big to fail”

And I have yet to see one of these Republicans pony up any evidence that tax cuts do anything to create jobs nor have they been challenged by the “liberal media” to do so. The Librul Media ™ also refuses to ask any of these mouth-breathers what the country can point to that was a result of the Bush tax cuts.  Reagan slashed taxes the moment he entered into office and the result was predictable; ballooning deficits, a worsening recession, and finally, significant ground lost in the mid-term elections.

Two things brought us out of the Reagan Recession; deficit spending and the lowering of interest rates.  In fact, in 1982 Reagan hiked corporate income taxes by 100 billion dollars.  Within two years inflation was in the single digits again and corporate earnings were up by 29%.

Cutting taxes is not an economic policy, it is a slogan.

-mg

12 Responses to “Yes, morons, Ronald Reagan did have a stimulus package.”

  1. jeromy Says:

    The “Party of Reagan” isn’t, though they do find those facts to be very stupid things.

    They are the Party of Limbaugh/Cheney. Reagan is just the image. Bush was an image. The true minds of the GOP are hated and reviled by the public.

  2. Thomas Tallis Says:

    absolutely epic post.

  3. Dana Says:

    Mr Ganzeveld wrote, in boldfaced type:

    Cutting taxes is not an economic policy, it is a slogan.

    Really? Allow me to post for you what the man for whom you voted, the man who is now President of the United States, said on his campaign website:

    Obama’s Comprehensive Tax Policy Plan for America will:

    * Cut taxes for 95 percent of workers and their families with a tax cut of $500 for workers or $1,000 for working couples.
    * Provide generous tax cuts for low- and middle-income seniors, homeowners, the uninsured, and families sending a child to college or looking to save and accumulate wealth.
    * Eliminate capital gains taxes for small businesses, cut corporate taxes for firms that invest and create jobs in the United States, and provide tax credits to reduce the cost of healthcare and to reward investments in innovation.
    * Dramatically simplify taxes by consolidating existing tax credits, eliminating the need for millions of senior citizens to file tax forms, and enabling as many as 40 million middle-class Americans to do their own taxes in less than five minutes without an accountant.

    Under the Obama Plan:

    * Middle class families will see their taxes cut – and no family making less than $250,000 will see their taxes increase. The typical middle class family will receive well over $1,000 in tax relief under the Obama plan, and will pay tax rates that are 20% lower than they faced under President Reagan. According to the Tax Policy Center, the Obama plan provides three times as much tax relief for middle class families as the McCain plan.
    * Families making more than $250,000 will pay either the same or lower tax rates than they paid in the 1990s. Obama will ask the wealthiest 2% of families to give back a portion of the tax cuts they have received over the past eight years to ensure we are restoring fairness and returning to fiscal responsibility. But no family will pay higher tax rates than they would have paid in the 1990s. In fact, dividend rates would be 39 percent lower than what President Bush proposed in his 2001 tax cut.
    * Obama’s plan will cut taxes overall, reducing revenues to below the levels that prevailed under Ronald Reagan (less than 18.2 percent of GDP). The Obama tax plan is a net tax cut – his tax relief for middle class families is larger than the revenue raised by his tax changes for families over $250,000. Coupled with his commitment to cut unnecessary spending, Obama will pay for this tax relief while bringing down the budget deficit.

    Now, while that’s still available, you have to know where to look, because the site barackobama.com has taken down the issues links. But it seems as though President Obama disagrees with you. Of course, there is his now-hilarious claim:

    The Obama tax plan is a net tax cut – his tax relief for middle class families is larger than the revenue raised by his tax changes for families over $250,000. Coupled with his commitment to cut unnecessary spending, Obama will pay for this tax relief while bringing down the budget deficit.

    still hanging around the ether. As I look at the Porkulus Plan y’all are championing, it’s somewhat difficult to reconcile with his pledge to “cut unnecessary spending.”

  4. Common Sense Political Thought » Blog Archive » So, additional money for the National Endowment for the Arts is “necessary government spending?” Says:

    [...] Thanks to our good friend Michael Ganzeveld, I was, once again, led to check out the campaign promises of the 44th President of the United States. His campaign website is still up and running, though the homepage links to some of his promises seem to have disappeared; I’m sure it was just an oversight. [...]

  5. mike Says:

    Yeah, so? What’s your point? Cutting taxes is a slogan when it comes out of your mouth because it’s your only answer to any dilemma. Worst of all, it’s just plain old cynical obstructionism by a bunch of fringe malcontents praying for a disaster that might yield some political gain. In the Obama case it’s part of an overall solution. Not a crack-pot panacea sold as a remedy to cure all ills.

    Or maybe I’m reading too much into this and this is merely just one of your wingnut, recycled Limbaugh “Librulz are hippocriites!!!!!” exercises?

  6. Yorkshire Says:

    Imposed a 45% duty on Japanese motorcycles for the ben­efit of Harley Davidson, which admitted that superior
    Japanese management was the cause of its problems;

    Back in the 80′s Harley-Davidson was on the verge of bankruptcy. They were the last American motorcycle standing, sitting, or leaning. This was of interest to me since there is a large plant in York, PA just up the road from here. H-D made a crappy bike then. Management and labor basically existed on the earth and the moon for as close as they could stand each other. For every two bikes that went out, one came back. So, it was do something drastic or die.

    What finally happened was labor and management finally figured out they had to work together, not at each other’s throats. They finally came up with the idea of a joint labor management council at the plant to work out problems. With the 45% tarriff, they got the breathing room they needed and started working on what ailed H-D. Well, a lot did. But throught hard work, both sides found each other as partners in this adventure, not adversaries. After a few years, quality and productivity soared. Defects were drastically reduced. A Sporter line was added, and another production line for the hogs was added. Essentially from the 80′s to the 90′s the plant doubled and a half.

    Now one mile to the east was Caterpillar who did not learn the lessons of H-D. Strikes were called, and Cat took the highest paying bluecollar jobs south. With the economic downturn, H-D is still thriving but with a small layoff. They still employ more now, than they did in the 80′s and this is what the 45% tarriff did.

  7. Jeromy Says:

    Say what you want, Mike, Dana’s just gonna keep saying “Porkulus” and burn some incense in front of his framed picture of Rush Limbaugh.

  8. Iowa Liberal » Blog Archive » Blaming Clinton after all these years. Says:

    [...] it takes to convince an uncritical mind. In the case of Reagan he was certainly an evangelist but hardly a practitioner. In fact, he was one of the most protectionist presidents the country has ever seen. As for Clinton [...]

  9. David Says:

    While I don’t know of any clear proof that taxes help create jobs, isn’t that just common sense? What else would competitive capitolists spend the extra money on, if not expanding and improving their business, either by purchasing improvements that directly fund other companies, or by increasing their staff? Granted, I’m sure some part goes into lining their pockets, but only as much as allows them to remain competitive. I think that, sooner or later, unscrupulous CEO’s go out of business, either by being fired, or taking their company down with them–the problem, I think, fixes itself.

  10. David Says:

    I might also point out, that it seems that many of Regan’s stimulus was directed to encouraging the private sector directly, rather than things like ATV trails, community-activism groups, the NEA, funding free-lunches at schools (not that I’m opposed to the last two, but what do they do for the financially essential portions of the private sector?), or things that will become a long-term commitment, such as the various construction projects that will require mainetenance. On the other hand, Reagan’s package seem a bit more single use.

  11. jeromy Says:

    What else would competitive capitolists spend the extra money on, if not expanding and improving their business, either by purchasing improvements that directly fund other companies, or by increasing their staff?

    The essential question here is how these companies got the money, not what they do with it.

    Rationalizing how they would use it doesn’t change the fact that Lockheed Martin gets tens of billions of dollars a year through wealth reallocation schemes vis a vis the Pentagon, a state institution, so “competitiveness” doesn’t enter into the equation because the “demand” is artificial.

    As far as what you deem “financially essential” you’re allowing the state to make that decision which is hardly in accordance with free market principles.

    Anyways, the point of the article was that Ronald Reagan was hardly the free-market fanatic his devoted followers make him out to be.

  12. Iowa Liberal » Blog Archive » Out of ideas. Says:

    [...] right. They must be insane. How else would you explain their complete historical ignorance? Reagan ramped up spending astronomically and was one of the most protectionist presidents in the his…. Republicans have been repeating their mythology about Reagan and tax cuts for so long that, much [...]

Leave a Reply