Krugman: An Economic Legend (Instead of Truth on Reagan)

[RamboLiberal]

http://www.nytimes.com/2004/06/11/opinion/11KRUG.html?pagewanted=print&position=

In the movie "The Man Who Shot Liberty Valance," a reporter defends prettifying history: "This is the West, sir. When the legend becomes fact, print the legend." That principle has informed many of this week's Reagan retrospectives. But let's not be bullied into accepting the right-wing legend about Reaganomics.

Here's a sample version of the legend: according to a recent article in The Washington Times, Ronald Reagan "crushed inflation along with left-wing Keynesian economics and launched the longest economic expansion in U.S. history." Actually, the 1982-90 economic expansion ranks third, after 1991-2001 and 1961-69 — but even that comparison overstates the degree of real economic success.

The secret of the long climb after 1982 was the economic plunge that preceded it. By the end of 1982 the U.S. economy was deeply depressed, with the worst unemployment rate since the Great Depression. So there was plenty of room to grow before the economy returned to anything like full employment.

The depressed economy in 1982 also explains "Morning in America," the economic boom of 1983 and 1984. You see, rapid growth is normal when an economy is bouncing back from a deep slump. (Last year, Argentina's economy grew more than 8 percent.)

<snip>

So we're supposed to believe that a tax cut passed in 1981 was somehow responsible for an economic miracle that didn't materialize until around 1997. Apply the same timing to the good things that happened on Mr. Reagan's watch, and you'll discover that Lyndon Johnson deserves the credit for "Morning in America."

[jmags]

1. Yet another beauty by Krugman filled

with facts for us to shoot down the myth of Reagan to the ill-informed, so they can see the real man.

[dw]

2. I heard an NPR interview of a man in line yesterday.

Asked why he respected Reagan, he replied that he was in the military, an aircraft mechanic, when Reagan took office. And, he said, as soon as Reagan took over they started seeing equipment show up that they needed to do their work properly.

Hmmmm. Let's see, Mr. Reagan-lover. You say the equipment shows up in early '81. Let's take a look at what had to happen for it to get there.

Someone had to deliver it to the base, probably pulling it from some warehouse somewhere or manufacturing it from a purchase order, after someone purchased it, after someone approved the purchase, after someone wrote the specification for the purchase (this is the government, remember), after someone approved the appropriation for the purchase based on the military budget, after Congress voted in favor of the military budget and the budget was approved by PRESIDENT JIMMY CARTER.

Let's all honor the president who in fact supported the working military during the Reagan administration.

[tom_paine]

3. KICK for Krugman...as always...

:kick: :kick: