Who Really Killed The Reagan Revolution?

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The Reagan Revolution ...

RIP?

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With the passage of the massive "Housing Bailout", many in the press are trumpeting the largest increase in government spending, regulation and expansion of power since FDR.   (Even though the Congress has estimated the cost of the bailout at $400-700 billion, CNBC reports that the real obligation to taxpayers will likely be north of $1.4 trillion.)  Sadly, the press has it right.  Even sadder, the collapse of the Reagan Revolution started long before the sub-prime credit mess.  It started in the White House and with Republicans in Congress.

 Oh How Far We Have Fallen!

1.  We should all remember what Ludwig von Mises said in his book Bureaucracy:

"He who is unfit to serve his fellow citizen wants to rule him."

2.  Marry this to what I saw Rep. Barney Frank (D), Chairman of the Financial Services Committee, say in an interview on CNBC last Friday.

     Q. "Do you want us to usher in a new golden age of regulation?"

     A.  "Yes !"

Headline On The Front Page of the WSJ ...  

Friday, July 25

"Unraveling Reagan - 

Sour Economy Spurs Government To Grab Bigger Oversight Role"

Summary from WSJ:

"... a major challenge to the movement toward deregulation..."

"... some proponents of a bigger oversight role for government are Republican..."

"... SEC Chairman Christopher Cox said the SEC should be given more power to regulate investment banks..."

"... state utility commissions are re-establishing control over power companies..."

"Both major party candidates are endorsing proposals to create new Fed-style commissions to limit greenhouse-gas... and to decide how to spend billions of dollars on energy-efficient technology."

"The movement started by President Reagan has taken several hits.  2001 terrorist attacks ➭ DHS ...  corporate accounting scandals ➭ Sarbanes-Oxley. "

"The Treasury Department is seeking approval to buy equity stakes in Fannie Mae and Freddie Mac and to offer them unlimited lines of credit..."

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"Government isn't the answer to our problems, government is the problem."

                                                                                           President Ronald Reagan

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"W" and the "Republican" Congress

I put Republican in quotes because the Republicans of the past 7 years have not been elephants, they have been RINOs (Republicans In Name Only).  But for appointing good judges, the President has not been any better.  In the first 3 years of President Reagan's administration, he decreased non-discretionary spending by 14%.  In contrast, "W" increased non-discretionary spending by 21% over the same time frame.  

After 7 years of spending like drunken Democrats,  "W" wakes up...

"Fiscal conservatism is one of my defining issues for the remaining months."

                                                                 President Bush in a Neil Cavuto interview 

                                                                                                                      May - 2008

The President finally wakes up... but...

If the wake-up call comes too late, you miss your meeting...  

even if your meeting is with destiny.