"Want a Better Economy? History Says Vote Democrat!"

[TooTall]

Republicans believe that Reaganomics produces a strong economy.

On some levels their faith in Reaganomics makes sense. Lower taxes, fewer regulations and lower labor costs does stimulate the investment side of the equation (meaning: if the capitalist is promised a higher return (because of lower taxes and lower labor costs) than he is more likely to invest).

But Reaganomics has a crucial flaw. It doesn't believe in the structures that boost middle and lower class purchasing power, namely high wages/benefits along with the whole infrastructure of pro-consumer legislation (e.g., anti-trust) and the protection of prices from speculators and monopolists. Nor does it support the whole postwar infrastructure of middle class legislation that made college and health care affordable to struggling families, all of which put more spendin' money in middle class wallets, resulting in massive consumer spending, which is what allows Main Street to thrive.

Reaganomics removed all the things that put more money in middle class wallets, choosing to make up for lowered wages and reduced benefits with the most aggressive expansion of credit in American history. [this was a sly move. They created a sustained economic boom with the strategic expansion of debt, yet they claimed that the boom was due to lower taxes and deregulation. The created a fake credit based democracy - brought to you by Visa, MadterCard and American Express - and they called it Morning in America. Silly rabbit: everyone knows that this fake dream ended in a nightmare of debt. The working American family is now too indebted to consume at the necessary levels to sustain economic growth.

Don't take my word for it. Study what happened to family debt starting in 1980. Essentially, as wages/benefits went down (to spur investment) working Americans needed to borrow more money to fill the gap left by reduced wages. They also had to borrow more money to make up for the loss of their jobs to China (where our capitalists could benefit from the world's cheapest labor). [don't let anyone fool you, our capitalist class loves the criminally cheap labor that comes with a tyrannical state controlled economy]

But here is my point. Reaganomics didn't create a strong economy based on robust wage-based consumption. To the contrary, it spent 30 years driving middle class families deeper into debt so that it could artificially boost the profit margins of the donor class (the folks who own our politicians). Whereas democrats believe that sustained economic growth can only happen if the lower and middle class consumers have legitimate resources to consume (not simply credit and debt gimmicks that allows them to artificially stay afloat in a sea of lowered wages and jobs lost to China).

Look at the job growth from 1945 to 1973, the heyday of postwar liberalism- a time of high taxes and high wages. There is no greater instance of economic growth in history - and we are lucky that Republican presidents (Ike/Nixon) supported the New Deal structure that created the most solvent middle class consumer we've ever seen.

There is a lesson here. You can't have strong domestic job growth if you bankrupt workers (consumers) with the low wage structure of Reaganomics.

I remember during the Carter years he put out a strongly worded 'request' to all employers and especially Defense contractors that they limit raises to 5%. Interest rates and inflation were double digits and I worked at Lockheed. They complied as did most if not all of the other defense contractors. I was able to change jobs twice over the next three years and with the raise I got from the new companies each time I changed I managed to support my family.

What do you suppose helped the Democrats maintain a good economy between 1945 and 1973? How about the Korean Conflict that created high paying Defense contractor jobs. The Vietnam War was a substantial boost to the economy for 10 years. Those Democrat wars cost us well over 100,000 dead soldiers, sailor, airmen and marines. Don't talk to me about how wonderful the Democrats are.