This scam has been killing wages and enriching billionaires for decades.
"The only thing wrong with the U.S. economy is the failure of the Republican Party to play Santa Claus." -- Jude Wanniski, March 6, 1976
The Republican Party has been running a long con on America since Reagan's inauguration, and somehow our nation's media has missed it -- even though it was announced in The Wall Street Journal in the 1970s and the GOP has clung tenaciously to it ever since.
In fact, Republican strategist Jude Wanniski's 1974 "Two Santa Clauses Theory" has been the main reason why the GOP has succeeded in producing our last two Republican presidents, Bush and Trump (despite losing the popular vote both times). It's also why Reagan's economy seemed to be "good."
Here's how it works, laid it out in simple summary:
First, when Republicans control the federal government, and particularly the White House, spend money like a drunken sailor and run up the US debt as far and as fast as possible. This produces three results -- it stimulates the economy, thus making people think that the GOP can produce a good economy, it raises the debt dramatically, and it makes people think that Republicans are the "tax-cut Santa Claus."
Second, when a Democrat is in the White House, scream about the national debt as loudly and frantically as possible, freaking out about how "our children will have to pay for it!" and "we have to cut spending to solve the crisis!" This will force the Democrats in power to cut their own social safety net programs, thus shooting their welfare-of-the-American-people Santa Claus.
Think back to Ronald Reagan, who more than tripled the US debt from a mere $800 billion to $2.6 trillion in his eight years. That spending produced a massive stimulus to the economy, and the biggest non-wartime increase in the debt in history. Nary a peep from Republicans about that 218% increase in our debt; they were just fine with it.
And then along came Bill Clinton. The screams and squeals from the GOP about the "unsustainable debt" of nearly $3 trillion were loud, constant, and echoed incessantly by media from CBS to NPR. Newt Gingrich rode the wave of "unsustainable debt" hysteria into power, as the GOP took control of the House for the first time lasting more than a term since 1930, even though the increase in our national debt under Clinton was only about 37%.
The GOP "debt freakout" was so widely and effectively amplified by the media that Clinton himself bought into it and began to cut spending, taking the axe to numerous welfare programs ("It's the end of welfare as we know it" he famously said, and "The era of big government is over"). Clinton also did something no Republican has done in our lifetimes: he supported several balanced budgets and handed a budget surplus to George W. Bush.
When George W. Bush was given the White House by the Supreme Court (Gore won the popular vote by over a half-million votes) he reverted to Reagan's strategy and again nearly doubled the national debt, adding a trillion in borrowed money to pay for his tax cut for GOP-funding billionaires, and tossing in two unfunded wars for good measure, which also added at least (long term) another $5 to $7 trillion.
There was not a peep about the debt from any high-profile in-the-know Republicans then; in fact, Dick Cheney famously said, essentially ratifying Wanniski's strategy, "Reagan proved deficits don't matter. We won the midterms [because of those tax cuts]. This is our due." Bush and Cheney raised the debt by 86% to over $10 trillion (although the war debt wasn't put on the books until Obama entered office).
Then comes Democratic President Barack Obama, and suddenly the GOP is hysterical about the debt again. So much so that they convinced a sitting Democratic president to propose a cut to Social Security (the "chained CPI"). Obama nearly shot the Democrats biggest Santa Claus program. And, Republican squeals notwithstanding, Obama only raised the debt by 34%.
Now we're back to a Republican president, and once again deficits be damned. Between their tax cut and the nearly-trillion dollar spending increase passed on February 8th, in the first year-and-a-month of Trump's administration they've spent more stimulating the economy (and driving up debt by more than $2 trillion, when you include interest) than the entire Obama presidency.
Consider the amazing story of where this strategy came from, and how the GOP has successfully kept their strategy from getting into the news; even generally well-informed writers for media like the Times and the Post -- and producers, pundits and reporters for TV news -- don't know the history of what's been happening right in front of us all for 37 years.
(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).