Ronald Reagan

This is one of those stats that’s sure to be both repeated and disbelieved, courtesy of Bill Clinton’s speech at the phenomenal DNC 2024 last night: since the end of the Cold War in 1989, the cumulative tally of job creation between the two parties is not even close: 50 to 1. Out of the 51 million jobs that have been created since then, about 50 million of them can be attributed to Democrats (under Clinton, Obama, and Biden who account for 97.4% of the total), and only 1 million to Republicans.

That is a pretty stark objective review of right-wing economic ideology. Which is billed, by the way, as “job creating” policy. Trickle down economics, supply side, Reaganomics, libertarian theory, Mudsill Theory — by whatever name you call it, the policy of giving massive tax cuts to the rich while cutting spending on the middle class is supposed to magically create great prosperity for all. Instead, the numbers show the exact opposite — prosperity is not trickling down. It is in fact being hoovered up.

DNC 2024: Fierce middle class energy

I hope to write more about the overall amazing, vibrant, and joyful atmosphere of the DNC this year — delivering not just the strongest support for Kamala Harris and Tim Walz possible, but bringing back the sense of hope and optimism from the Obama years in the most refreshing and much-needed way. But for now I’ll just say that the Democrats are driving home this economic message that has already been wildly successful under Joe Biden: when we invest in the middle class, the economy truly does grow for everybody.

When the middle class is strong, America is strong. It’s a lesson we learned in the post-war era of the 1950s but have drifted away from since the 1970s when corporate leaders and big business interests mounted a concerted effort to turn the tide against the New Deal value system that lifted us out of the Great Depression and the economic policy that ushered in that broad distribution of wealth in the U.S.

It feels like the fever is finally breaking. The decades of epic gaslighting fomented by the merchants of doubt may have reached the peak disinformation tolerance of the American people. Here’s hoping the real economic stories will now get told — and that Americans will go to the polls this November and cast their ballots accordingly.

Read more

Trump tax cuts right-wing economics

At least, not according to what Republicans promised when they passed them. The Trump tax cuts didn’t work to grow the economy, increase revenues, alleviate the debt, or benefit ordinary Americans as alleged.

The Tax Cuts and Jobs Act (TCJA) was introduced by then-Speaker of the House (and fiscal hawk) Paul Ryan and signed into law by then-President Donald Trump on December 22, 2017. It permanently reduced the corporate tax rate from 35% to 21%, and lowered the overall tax for all brackets — seems fair, right? Except the wealthy walked away with 50 times the amount of tax benefit as the lower brackets.

Trump tax cuts add $1.5 trillion to the deficit

Not only did the tax cuts not raise revenue as promised — they became a liability on the balance sheet when almost immediately going into the red. The Joint Committee on Taxation (JCT) estimated the TCJA would add approximately $1.5 trillion to the federal deficit over 10 years, after accounting for any temporary growth effects. The national debt will rise to accommodate as we borrow money to make up the shortfall between earnings and expenditures.

The Trump tax cuts reduced federal tax revenue, with significant declines in corporate tax receipts (surprise, surprise!). They did the exact opposite of what they promised to do — leaving our economy in a more precarious position even before the pandemic hit.

Who benefited from Trump’s tax cuts?

Conservatives and right-wing economists claim that tax cuts will help ordinary people by raising wages. In reality, however, corporations instead used their tax windfalls to do other things: stock buybacks, dividends, and executive pay. In fact, this happens over and over again each cycle of empty promises from so-called “fiscal conservatives” who in large part know exactly what they do.

Billionaires love Trump tax cuts!

They seem to believe they are entitled to the lion’s share of America’s money (as they have been since at least Mudsill Theory in 1858 and even before) and by gum, nothing is going to stop them — not democracy, not a sense of decency, not a sense of institutional preservation as used to be the very core pillar of Conservatism. No longer. Now it’s a will to power and to plunder. It’s not so much trickle down as it is hoover up.

Reaganomics, Trickle down, Laffer curve, Supply-side economics — it’s all the same

The magical revenue-generating power of tax cuts has been long promised and never delivered by right-wing Republicans. Since the 1980s edition, Reaganomics — the economic “theory” drafted on the back of a cocktail napkin dubbed the Laffer Curve for the slightly drunken man who scribbled it — has moved immense amounts of wealth upwards into the hands and coffers of the 1% and 0.1% at the expense of the masses.

The argument is that rich people will take the extra billions in returned tax money and use it to innovate and grow the economy — except that never happens. And why would they? They don’t have to earn revenue the old-fashioned way, through free market competition — they can just sit back on their laurels, buy a Senator or two, and rake in a huge windfall every few years that a GOP officeholder is in the White House. It is rock solid orthodoxy for the right-wing now, that tax cuts are almost the only policy initiative they care about — along with a side of deregulation and the slashing of the social safety net.

We’ve seen this movie before. The rich guys take the money and run — in many ways literally, into the arms of tax-free havens like the Cayman Islands or Seychelles. They do not return it to the American economy — although they do inject it into American politics, to skew the playing field even further in their favor despite already extracting extraordinary privileges and benefits to themselves from all aspects of their coziness with the political elite and their direct capture of various institutions.

As LBJ once said:

“If you can convince the lowest white man he’s better than the best colored man, he won’t notice you’re picking his pocket. Hell, give him somebody to look down on, and he’ll empty his pockets for you.”

President Lyndon Baines Johnson, 1960

The economic elites are dividing us over race and religion, in order to pick our pockets. This is why we can’t have nice things. We should boot them out and have nice things.

Related Reading:

Trickle Down Economics
Dark money
The GOP is 3 Cults in a Trenchcoat
Property vs. People, all the way down
Oligarchy and the Creep of Fascism
Read more

Who were the early conservatives? They emerged out of the group of former fascists and Nazi sympathizers in the US.

1930s opposition to Franklin Roosevelt’s New Deal

2 main right-wing factions then:

  1. libertarians — right-wing economics faction led by Milton Friedman, Ludwig von Mises, & Friedrich Hayek. Favors dramatically cutting taxes (aka trickle down economics), reducing social spending, while increasing the military budget dramatically — a math that does not add up, numerically or historically speaking.
  2. anti-communists, antisemites, and Nazi sympathizers — Fred Koch, William Randolph Hearst, Henry Ford, Father Charles Coughlin, Charles Lindbergh, McCarthyites. Culminating in the 1944 Great Sedition Trial and the end of WWII shortly thereafter, without real consequences handed to the perps.

After the Allies won World War II, a number of the early Hitler sympathizers “hid out” in anti-communist circles, allowing them to cloak their underlying fascism inside of the American Cold War project and give it a semi-presentable face in conservatism.

In the 1950s and ’60s we saw the emergence of the reactionary backlash:

In the 1970s, 2 more conservative groups emerged for a total of 5 main sects:

4. neoconservatives — Ronald Reagan, Dick Cheney,

5. the religious right — the Moral Majority, Jerry Falwell Sr. & Jr., Jimmy Swaggart, Jim & Tammy Fae Baker, Pat Robertson, Jesse Helms, Paul Weyrich, Paul Regnery, William Rusher, prosperity gospel

Conservatives welcomed fascism again in 2016

The ascension of Donald Trump to the presidency of the United States gave permission to all the closet fascists practicing ketman as conservatives to come right on out and let their freak bigotry flags fly.

Bigotry, personified -- Midjourney

All the little white power sleeper cells and now networked anti-government militia groups were let off the chain and invited to take a swing at our national sovereignty and see if they could steal the American government for him. Thanks to the strength and integrity of numerous civil servants and others they did not succeed — however, the festering mass of fascism isn’t going anywhere much just yet.

Other topics

will be fleshing out further:

Read more

Mythology has it that “reckless Democratic spending” is to blame for the ballooning of the national debt — though the historical record shows otherwise.

In fact, the conservatives‘ beloved demi-god Ronald Reagan was the first President to skyrocket the debt, thanks to some bunk ideas from an old cocktail napkin that linger to this day — the Republican monetary theory in a nutshell is (I shit you not) that we should take all our pooled tax money and give it to… billionaires. Because, you know, they’re clearly the most qualified people to make decisions affecting the 99% poor people. Supposedly they’re the smartest folks to entrust with our money.

Trickle down, debt up

Except it’s not true, as year after year and study after study shows. Nor for all their finger-waggling at Democrats over the national debt has the GOP turned in a balanced budget since Nixon. Republicans are the most gigantic hypocrites on economics writ large, but particularly so for the national debt — with Reagan, Bush I, Bush II, and Trump all turning in record debt increases, primarily through tax cuts for the wealthy and the Gulf and Afghanistan wars.

Meanwhile, Bill Clinton balanced the budget, created a surplus, and reduced the debt during his 8 years in office, and Obama inherited the deepest recession since the 1929 Great Depression.

The financial crisis of 2008-09, itself caused by the reckless Republican zeal for deregulation — this time of financial derivatives — was a wholly GOP-owned debacle that the next president paid for politically. Nevertheless, President Obama had the debt again on a reduction path as a percentage of GDP — but then Donald “I bankrupted a series of casinos!” Trump oozed his way into the highest office in the land.

It’s weird how “reckless Democratic spending” always happens under Republican administrations!

During the Trump administration, Republicans patted themselves on the back for giving a $2.7 trillion tax cut to billionaires for no reason, while the economy was relatively hot already (after being rescued by Obama). Not only was no progress made on diminishing the debt, but the national debt actually increased (both nominally and as a percentage of GDP) under Trump’s first term even before the sudden arrival of a novel coronavirus caused it to leap into the stratosphere like a 21st century American tech oligarch.

Only when President Biden arrived on the scene and took the helm of fiscal and monetary policy did the national debt begin cooling off once again — all while dramatically and quickly scaling up covid-19 vaccine production and distribution and passing over $3 trillion in Keynesian legislation meant to get the dregs of the middle class reoriented to a place on the map vis-a-vis the 1% once again.

Republican national debt bullshit

I am hereby calling bullshit on Republicans’ crocodile tears over the national debt, which they suddenly remember only when a Democrat is in town and summarily ignore while their guy is in the hot seat burning through cash like it’s going out of style.

We need to have a better collective narrative for Democratic success on the economy. The Republicans are no longer the kings of the economic world — if they ever were. It feels more like smoke and mirrors each passing day, with climate change denial, the Inflationary Boogeyman, and other GOP Greatest Hits playing ad nauseum on the AM social media waves.

Here are at least a few things to remember about the national debt, that Republicans generally get wrong:

  • wars are very expensive
  • booms in social services are expensive too; but not as expensive as wars
  • there is not any perceivable truth in the old GOP party line that Democrats always overspend and Republicans are always thrifty
    • Reagan and both Bushes presided over two of the biggest spikes in public debt in recorded history, outside of FDR who had both the Great Depression and WWII to contend with
    • Clinton, Carter, Johnson, Kennedy, and Truman all decreased the debt
  • be wary of graphs that don’t “normalize” to GNP — it’s an attempt to “lie with statistics” by obfuscating the roles of inflation and the growth of the economy itself
  • there is more than one way to look at and evaluate the level of public debt

National Debt by President since the 20th century

PresidentNational Debt ChangeTotal National Debt
Taft+$210 million$2.13 billion
Wilson+$21.5 billion$23.5 billion
Harding/Coolidge+$7.9 billion$22.3 billion
Hoover+$7.3 billion$29.7 billion
F.D. Roosevelt+$218.9 billion$260.1 billion
Truman+$7.5 billion$256.6 billion
Eisenhower+$23.2 billion$272.8 billion
Kennedy/Johnson+$54.9 billion$311.9 billion
Nixon/Ford+$371 billion$698.1 billion
Carter+$299 billion$997.9 billion
Reagan+$1.86 trillion$2.86 trillion
G.H.W. Bush+$1.55 trillion$4.42 trillion
Clinton+$1.40 trillion$5.81 trillion
G.W. Bush+$5.85 trillion$10.71 trillion
Obama+$8.59 trillion$19.30 trillion
Trump+$7.80 trillion$27.10 trillion
Biden (as of March 2023)+$3.00 trillion (projected)$30.10 trillion (projected)
Read more

Or: How Milton Friedman destroyed Western civilization, the neolliberalism story.

An economic ideology first theorized in the 40s and 50s by scholars, it was brought to popular attention in the 1970s by the works of economist Milton Friedman and novelist Ayn Rand among others. It grew in popularity and became widely adopted in U.S. economic policy beginning with Ronald Reagan in the 80s.

The essential heart of neoliberalism is the idea of the rich as top performers and job creators, driving the economy forward through their achievements and innovations; and that societies work best with little government regulation and where citizens are shaped to work according to market principles. Its adoption as a major driver of policy effectively undid many of the gains to middle class opportunity created by the New Deal, FDR‘s ambitious public works project that pulled the nation out from the grips of the Great Depression following the 1929 crash on Wall Street.

Neoliberalism is the dominant economic orthodoxy in the modern era. It is both a political and a financial ideology, with the following extremist beliefs:

  • Antigovernment sentiment — Their pitch is that all governments, including democratic ones, threaten individual liberty and must be stopped (or “drowned in the bathtub,” in the words of anti-tax zealots and movement conservatives).
  • Free markets should conquer governments — They claim, absurdly, that the toppling of self-governance would improve both economies and individual liberties.
  • The victory of markets is inevitable and there is nothing you can do about it — The fall of the Soviet Union and Cold War Communism was deemed the “end of history” by neoliberals, who believed that laissez-faire free market capitalism would inevitably triumph over all other forms of economic and political systems.
  • Economies work best when governments don’t intervene — Neoliberals want to prevent the powers of government from interfering with their ability to cut corners, dump industrial waste, pay fair wages, offer benefits, adhere to safety standards, engage in deceptive advertising, commit tax evasion, and so on — while continuing to supply them a steady stream of the public’s money via unpaid for tax cuts that balloon holes in the deficit. They fight against regulation tooth and nail, and try to claim that markets operate “naturally” as if under something akin to laws of physics — while failing to mention that there are no markets without regulation, without standards of fairness, without a justice system to enforce contracts and do its best to ensure a relatively equal business playing field.
  • The alchemy of neoliberalism will transmute greed into gold for everyone — The neoliberal promise is about spreading wealth, freedom, and democracy around the world — at the barrel of a gun, missile, or drone if necessary. Neoliberals consider greed to be the essence of human nature, and have modeled an entire societal system around this most base of human instincts. They claim, improbably — and surely many are True Believers — that narcissism and the aggressive pursuit of power and wealth will somehow magically create peace, happiness, and riches for everyone.

The insistence that governments and self-rule should be subordinated to the ultra-rich, to the oligarchs — that, to me, is the core essence of why this framework is evil. The staggeringly dissonant conviction about transforming sociopathy into global peace is a very close second.

Since the 1970s and accelerating with Reagan years, wealthy elites in the right wing have been spending gobs of their ill-earned wealth on creating a conservative movement echo chamber of think tanks, talk radio, literature, televangelists, YouTube streamers, and more — it is the vast right-wing conspiracy Hillary Clinton warned us about. It most certainly exists, and it most certainly is aggressively pursuing its political aims to disenfranchise the American people as fully as possible, so as to better walk away with an absurdly unjust share of the mutually created wealth by the wealth of intelligent and diligent labor here in the United States.

Common whites

It appeals to the MAGA crowd because it allows them to vicariously tag along with the rich and powerful right-wing bigots who flaunt and dangle their wealth in front of the plebes by which to entice them to open up their wallets and send in a meagre donation for this or that white victimhood fund that does nothing but enrich the scam artists who run it as a hollow shell. It validates their hardcore white supremacy and casual racism alike, provides the sadistic satisfaction of attacking their enemies (symbolically and/or literally), gives them something to do and believe in, and keeps them entertained while their pockets are being fleeced in broad daylight.

Neoliberalism has succeeded in undermining some of the last shreds of democratic infrastructure and civic goodwill in society at this point in American political history. The defenses brilliantly architected by the Founders to ensure checks and balances would manage the power games in Washington to within workable levels have frayed even further under 4 years of Trump, and the vitriol of the January 6 coup attempt and insurrection that’s fueled further right-wing Big Lie entrenchment and domestic terrorist extremism.

Democracy is in crisis, and neoliberalism the culprit of this hostage story.

At least Joe Biden is correct in his analysis of the solution: we should tax the rich.

Read more