Reaganomics: They didn’t work then, and they WON’T WORK NOW.
By the end of his term, 138 Reagan administration officials had been convicted, had been indicted, or had been the subject of official investigations for official misconduct and/or criminal violations. In terms of number of officials involved, the record of his administration was the worst ever.
“Spending during Reagan’s two terms (FY 1981-88) averaged 22.4% GDP, well above the 20.6% GDP average from 1971 to 2009. In addition, the public debt rose from 26.1% GDP in 1980 to 41.0% GDP by 1988. In dollar terms, the public debt rose from $712 billion in 1980 to $2,052 billion in 1988, a three-fold increase. Combined with tax cuts, this pattern of elevated spending is consistent with significant Keynesian stimulus theories.”
- Paul Krugman, an American economist, Professor of Economics and International Affairs at the Woodrow Wilson School of Public and International Affairs at Princeton University.
Fiscal Conservatism at its best. Reagan not only spent his administrations destroying the middle class under the guise of “trickle-down economics”, but also set the dangerous precedent of deficit spending.
The true costs of Reagan and extreme capitalism