Case in point- who remembers what Mr. Reagan had to say about the national debt when he was running for president? He talked about balanced budgets and returning to the gold standard.
Anybody remember Mr. Reagan's soliloquy on how much is a trillion dollars? He was making a point about out of control government spending. What did Mr. Reagan learn in office? Well, we can understand what he learned from what he did in office.
Mr. Reagan cut taxes by $749 billion. This was supposed to stimulate supply-side growth and it did provide massive annual budget deficits. Mr. Reagan also initiated a rapid rise in defense spending. Remember the battleships back in fighting trim and STAR WARS? These were just the exotic portion of defense growth.
Ronald Reagan and his administration more than equaled the entire debt burden produced by the previous 200 years of American history. Mr. Dick Cheney, said it best in Nov. 15, 2002
"Reagan proved deficits don't matter."
And then, of course, who remembers what President George W. Bush said on Jan. 29, 2004. Now George W is emphasizing his belief that giving individuals more money to spend i.e. lowering taxes is better than the government spending the money. Of course, George W. did great at government spending also.
Mr. Reagan and Mr. Bush have taught lessons on deficit spending when they actually had their hands on the office of the presidency.
So what should we learn from this.
The government certainly has no issues with running out of money. Money proved to be unlimited when Republicans are president.
So many republicans should learn these lessons from Mr. Reagan.
1. Shut up about the deficit and quit throwing around weapons of mass financial destruction called the debt ceiling debate.
2. Understand how the US financial system works.
Money is a means of exchange. We are not going to run out of it. We markl it up in spreadsheets just like the remainder of the worlds democracies.
Deficits play a key role in balancing our economy.
It is essential that American's understand fundamental economic rules. They will determine our prosperity in the future. They will determine how effectively we manage to deal with the great challenges of the 21st century.
Feel free to add your considered thoughts below.