Reagan Conservativism

In 1964 the most lauded pollical voice of conservatism was that of Arizona Senator Barry Goldwater.  Goldwater opposed Medicare, Medicaid and the Civil Rights Act of 1964.  By 1980 it was recognized how terribly shortsighted that thinking was and a new national voice for conservatism emerged – one that should have never been silenced. 

Enter Ronald Reagan.

In President Reagan’s first inaugural address on January 20, 1981 he uttered one of his most quoted pronouncements; “…government is not the solution to our problem; government is the problem.”

 Those who evoke the quote attempt to manipulate, through deceit, that Reagan actually said our government is NEVER the solution: government is ALWAYS the problem.   It is also noteworthy that they never provide the complete quote, which was; “In this present crisis, government is not the solution to our problem; government is the problem.”  “In this present crisis” was directed specifically and ONLY at the inflationary economic struggles of the time. It was never meant as a universal indictment against all government programs.

To believe in the NEVER and ALWAYS misconception one would have to believe that President Reagan opposed clean water, clean air, safe food, public safety.  That he opposed Social Security, Medicare, Medicaid.  That he opposed the post office, public libraries, public parks, public transportation, public education, student loans.  That he opposed unemployment insurance, food assistance programs, energy assistance programs, federally insured savings accounts, home loan assistance and a whole host of other programs that were badly needed and quelled much pain and suffering nationwide. 

This suggestion leads to a strong inclination to explore the record. 

Let’s begin with another quote from that inaugural address:  “Now, so there will be no misunderstanding, it’s not my intention to do away with government.”  With regards this pronouncement he did not falter.

 The anticipated conservative assault on entitlement and benefit programs never materialized under President Reagan.  In some cases, Reagan strengthened programs and in other cases he saved programs.

In 1983 Social Security faced insolvency.  Reagan saved it through a $165 billion bailout by employing an agenda that totally contradicted Goldwater conservativism and which lends no support to today’s Fox News brand of radical conservatism.  He taxed Social Security benefits for the first time.  The tax extended to only upper-income recipients.  Additionally, the tax wasn't indexed to include inflation, which led to a gradual increase in the number of people who paid it.

One of Reagan’s single biggest contributions was his success in reducing poverty.  The Earned Income Tax Credit (EITC), a wage subsidy for the working poor, was established in 1975.  By 1986 the program had dwindled to insignificance.  Reagan revitalized and expanded the program by including it as part of 1986 Tax Reform Act.  One of the most startling and progressive revisions in the measure exempted millions of low-income earners from paying any income taxes.  By the late 1990s, the 1986 initiatives resulted in helping some four million people escape poverty every year. 

President Reagan raised gasoline taxes in 1983 and 1984.  He raised corporate taxes by $120 billion over five years and closed corporate tax loopholes worth about $300 billion over that same five-year period.  His three-year, $100 billion tax hike was the largest post World War II tax increase.

While Reagan managed to moderately slow the rate of government growth, the size of government grew under the Reagan Administration.  The number of workers on the federal payroll rose by 61,000 and the national debt rose from $700 billion to $3 trillion.

Former Reagan financial advisor, David Stockman explains that; “The 1981 tax cut blew a much bigger hole in the federal budget than expected. So, over the next few years, Reagan agreed to raise taxes again and again, ultimately undoing about half the savings of the '81 cut.”   Reagan raised taxes four times between 1982 and 1984 and raised taxes a total of eleven times as president. 

While the 1981 tax cuts caused enormous deficit headaches for President Reagan it did act as a legitimate stimulus within a business community that was far more patriotic and responsible than the one we are burdened with today. 

It was a difficult balancing act.   While Reagan desired to cut the size of government and balance the budget, he refused to do it at the expense of the poor and middle class.  President Reagan’s record is commendable especially when we consider that none of this is even considered, let alone, achievable by today’s “So-Called” conservatives.   

President Reagan understood the proper role of government.   It was reflected in the single most important passage - the one that should be the most quoted - from that 1981 inaugural address.

“We shall reflect the compassion that is so much a part of your make-up. How can we love our country and not love our countrymen -- and loving them reach out a hand when they fall, heal them when they’re sick, and provide opportunity to make them self-sufficient so they will be equal in fact and not just in theory?”

This undeniable reality and legacy have been ignored.  It is the responsibility of those who wished to be viewed as conservative to resurrected and promoted this legacy.  For President Reagan’s greatest achievements were reached through his compassion and knowledge that government programs, through taxation, provide for the greatest common good which had nothing to do with NEVER and ALWAYS.