By Ben Cohen
Paul Krugman outlines why Ronald Reagan’s deregulation frenzy laid the ground work for the biggest economic catastrophe in 80 years. Why anyone believes the man had anything to do with Conservatism is a complete mystery. Spending money you don’t have while encouraging people to be irresponsible was a hallmark of the Reagan legacy, and one of the reasons why we are in this gigantic mess today.
Idiots like Sean Hannity and Mitt Romney have based their entire persona’s on being ‘Reagan Conservatives’, never bothering to examine his actual record – Fiscal imprudence and irresponsible deregulation:
We weren’t always a nation of big debts and low savings: in the 1970s
Americans saved almost 10 percent of their income, slightly more than
in the 1960s. It was only after the Reagan deregulation that thrift
gradually disappeared from the American way of life, culminating in the
near-zero savings rate that prevailed on the eve of the great crisis.
Household debt was only 60 percent of income when Reagan took office,
about the same as it was during the Kennedy administration. By 2007 it
was up to 119 percent.
Ben Cohen is the editor and founder of The Daily Banter. He lives in Washington DC where he does podcasts, teaches Martial Arts, and tries to be a good father. He would be extremely disturbed if you took him too seriously.