The Daily Bell has a good piece by Paul Craig Roberts about the continual historical revisionism that blames everything on Reagan.
Salient points excerpted:
1. Reagan most certainly is not to blame for the financial crisis or for the neoconservative wars for American hegemony.
The Reagan administration’s interventions in Grenada and Nicaragua were not, as is sometimes claimed, precursors to Clinton’s war on Serbia and the Bush and Obama wars on Iraq, Afghanistan, Libya and Syria, with more waiting in the wings. Reagan saw his interventions in the context of the Monroe Doctrine, not as an opening bid for world hegemony.
The purpose of Reagan’s interventions was to convince the Soviets that there would be no more territorial gains for communism. The interventions were part of Reagan’s strategy of bringing the Soviets to the table to negotiate the end of the cold war.
2. When Reagan understood what the Israelis had lured him into in Lebanon, he pulled out. Reagan opposed war as an instrument of American hegemony. It is the neoconservatives who use war to achieve hegemony. Reagan was not a neoconservative.
3. The first business of the new Reagan administration was to complete the Carter administration’s plan to save autoworker jobs by imposing quotas on imports of Japanese cars. Reagan did this even though it demoralized his conservative free trade supporters. Reagan got no thanks from the left who denounced him instead for bailing out his Republican buddies in the auto business.
4. I still hear from readers hostile to Reagan that Reagan’s firing of the illegally striking air traffic controllers is proof that he was a “union buster.” One sometimes feels sorry for people who have so little grasp of politics. For a new president to let himself be rolled up by a poorly-advised, illegally-striking public sector union would have rendered Reagan impotent and without the power to achieve his ambitious agenda of changing the economic and foreign policies of the US. Even Reagan’s court historians do not realize Reagan’s extraordinary achievements in economic and foreign policy.
5. It wasn’t Reagan’s agenda that was anti-left; it was the rhetoric Reagan used in order to keep the conservative base in line. Conservatives did not understand supply-side economics any better than did the economics profession and Wall Street. Conservatives wanted a balanced budget, which is their solution to every economic problem. Reagan was talking about a 30% reduction in marginal tax rates (the rate of tax applied to increases in income) and about faster depreciation schedules for capital investments.
What this meant to conservatives was more budget deficits. Wall Street never lobbied me to repeal Glass-Steagall, but Wall Street did lobby me to water down the Reagan tax rate reductions.
[LR: exactly. The financial world is left-oriented because they benefit most from finagling money/banking and not from tax reductions aimed at the manufacturing and non-financial business sector]
5. On the cold war front, conservatives were very suspicious of negotiating with the Soviets. Some conservatives put out the story that Gorbachev was the anti-christ, that he would take Reagan to the cleaners and we would all end up living under the red flag of communism.
[LR: Well, they got that half right]
6. Reagan did not cut back government or abolish the welfare state.
7. If all the uninformed people who ranted about “Reagan deficits” and “tax cuts for the rich” had bothered to educate themselves about the policy that they so desperately wanted to demonize, a wider understanding of the Reagan era might have created an audience among Washington policymakers for writings by myself and others who stressed, to no effect, the adverse impact of jobs offshoring on the economy. Instead, this cancer, masquerading as the benefits of free trade, has gone untreated for 20 years.
8. The Presidents Working Group on Financial Markets, created in the last year of the Reagan administration, was labeled the “plunge protection team” by the Washington Post. The Working Group consists of the Treasury Secretary, Federal Reserve Chairman, and the financial regulators….. If speculators were indeed gaming the market at the expense of pension funds, IRAs, and long term investors, the government might have felt obliged to come up with new regulations or to use moral suasion or even direct intervention in order to protect legitimate investors from the greed of speculators. If speculators short the market and the Federal Reserve buys long, the shorts don’t pan out for the speculators.
How the Working Group has evolved since 1988 I do not know.
However, it is absurd to blame Reagan for the Federal Reserve’s different use or misuse of the Working Group twenty-four years later, if that is indeed what is occurring.