The Triumph of Politics: Why the Reagan Revolution Failed

The author was the only "economist" involved, at the time, in presenting President Reagan's "trickle-down" budget. This was Reagan's program of relieving the rich of their share of taxes, on the speculation that they are "job creators" and will spend their money building companies. He also slashed non-military government expenses to reduce public services and functions, while also increasing spending by expanding the military.

After it turned out that the amount of taxes actually collected was dramatically decreased, Reagan's team made up the shortfall by taking Social Security deposits (which were increased upon and from the middle class) and by borrowing heavily.

The rich were supposed to use their un-taxed profits to "create jobs". show more They didn't, but the appearance of prosperity was created with massive military spending and both public and private borrowing. The growth seen in the last three years of the Reagan administration was entirely due to Credit. In fact, the economy was collapsing as the Rich moved enterprises, and the cash, off-shore.

David Stockman basically apologizes to the American people for his role in the "trickle-down" fraud. show less

This book is a real shocker. I had always thought of "trickle down" of cutting taxes, had no idea Stockman was really also trying to cut spending programs (big time, Head Start, CETA, housing supplements) to balance the budget. According to this book, a real mea culpa, he realized he was wrong after 6 months but never called a halt to the budget cuts.

Best paragraph

"I also set about with considerable gusto to dismantle the energy program"

There went Carter's solar energy, windmills, gasohol plants..putting us back to ground zero.

The author of the Reagan revolution demonstrates how politics triumphed over the idealism of Reagan. Proving more powerful was the world of powerful bureaucracies, congressional committees, special interest groups, and a massive lobbying machinery of K St., spending was driven continuously higher by the military-industrial complex, middle-class entitlements, and Republican constituencies like farmers and veterans, while the revenue base was deeply depleted.

http://www.zerohedge.com/news/2017-02-26/stockman-after-march-15-everything-will...

https://dailyreckoning.com/david-stockman-trump-ticking-fiscal-time-bomb/

David Alan Stockman (born November 10, 1946) is a former businessman and U.S. politician who served as a Republican U.S. show more Representative from the state of Michigan (1977–1981) and as the Director of the Office of Management and Budget (1981–1985) under President Ronald Reagan.

"(Social Security) has to be means-tested. And Medicare needs to be means-tested...Let the Bush tax cuts expire. Let the capital gains go back to the same rate as ordinary income."[20]

"The Republican Party has totally abdicated its job in our democracy, which is to act as the guardian of fiscal discipline and responsibility. They're on an anti-tax jihad -- one that benefits the prosperous classes."[21]

"I invest in anything that Bernanke can’t destroy, including gold, canned beans, bottled water and flashlight batteries."[22]

"Ninety-two percent of the wealth is owned by five percent of the people." (Bloomberg TV 2013)

"[T]he Republican Party was hijacked by modern imperialists during the Reagan era. As a consequence, the conservative party cannot perform its natural function as watchdog of the public purse because it is constantly seeking legislative action to provision a vast war machine of invasion and occupation."

Other works:
The Reagan Economic Plan, 1981
The Great Deformation: The Corruption of Capitalism in America, PublicAffairs, 2013, ISBN 9781586489120
Trumped!: A Nation on the Brink of Ruin, and How to Bring it Back, 2016 show less