How Reagan Created Reaganomics

By:  Sam Blumenfeld
08/29/2011
       
How Reagan Created Reaganomics

Since there has been so much talk among Tea Partiers of returning to the good old, pre-trillion-dollar days of Ronald Reagan’s administration, I thought it would be a good idea to go back to that inspiring time to see what has been happening to the growth of the federal government and how the Great Communicator sought to deal with that problem.

In 1960, Uncle Sam, (better known these days as Uncle Sap), spent $76.5 billion to run the federal government. In 1970, a mere ten years later, that figure almost tripled to $194.9 billion. And ten years later, in 1980, federal spending tripled again to $579 billion.

By then Congress had lost complete control over federal spending. It had enacted so many entitlement programs that the budget had become a locomotive going full-speed down-hill with no brakes. By the time Ronald Reagan became President, the spending momentum was so great that the most a fiscally conservative president could do immediately was to slow down the rate of growth just a little. Momentum is a powerful force, and even a fiscal conservative cannot stop a locomotive on a dime. And that is why Reagan’s 1983 budget reached a new high of $757 billion, with a projected deficit of $98.6 billion.

Since there has been so much talk among Tea Partiers of returning to the good old, pre-trillion-dollar days of Ronald Reagan’s administration, I thought it would be a good idea to go back to that inspiring time to see what has been happening to the growth of the federal government and how the Great Communicator sought to deal with that problem.

In 1960, Uncle Sam, (better known these days as Uncle Sap), spent $76.5 billion to run the federal government. In 1970, a mere ten years later, that figure almost tripled to $194.9 billion. And ten years later, in 1980, federal spending tripled again to $579 billion.

By then Congress had lost complete control over federal spending. It had enacted so many entitlement programs that the budget had become a locomotive going full-speed down-hill with no brakes. By the time Ronald Reagan became President, the spending momentum was so great that the most a fiscally conservative president could do immediately was to slow down the rate of growth just a little. Momentum is a powerful force, and even a fiscal conservative cannot stop a locomotive on a dime. And that is why Reagan’s 1983 budget reached a new high of $757 billion, with a projected deficit of $98.6 billion.

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