Tue Jan 24, 2012, 09:58 AM
NNN0LHI (67,190 posts)
US went from being the world's largest international creditor to the largest debtor nation
Reagan Policies Gave Green Light to Red Ink
By Jonathan Weisman
Washington Post Staff Writer
Wednesday, June 9, 2004; Page A11
The line is not likely to make this week's eulogies to Ronald Reagan, but when Vice President Cheney allegedly declared, "Reagan proved deficits don't matter," he summed up an enduring argument from the former president's economic legacy.
In late 2002, Cheney had summoned the Bush administration's economic team to his office to discuss another round of tax cuts to stimulate the economy. Then-Treasury Secretary Paul H. O'Neill pleaded that the government -- already running a $158 billion deficit -- was careering toward a fiscal crisis. But by O'Neill's account of the meeting, Cheney silenced him by invoking his take on Reagan's legacy. snip
The fiscal shift in the Reagan years was staggering. In January 1981, when Reagan declared the federal budget to be "out of control," the deficit had reached almost $74 billion, the federal debt $930 billion. Within two years, the deficit was $208 billion. The debt by 1988 totaled $2.6 trillion. In those eight years, the United States moved from being the world's largest international creditor to the largest debtor nation.
Might want to mention this to any Republican acquaintances when they bring up the deficit. I imagine they would like us to forget this.
6 replies, 1315 views
Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
US went from being the world's largest international creditor to the largest debtor nation (Original post)
Response to TreasonousBastard (Reply #1)
Tue Jan 24, 2012, 10:22 AM
Demstud (298 posts)
3. Yup. Last one I talked to blamed "union thugs".
Some, particularly some of the older Republicans, are just too completely indoctrinated. But it's still good to make the facts known to as many people as possible. There's always a few in the crowd who can be convinced with sound argument, I think.
Response to pampango (Reply #4)
Tue Jan 24, 2012, 11:34 AM
FreakinDJ (14,808 posts)
5. An overall reduction in Tariffs 1984
In 1985, the U.S. imported many more goods than it exported, setting a record trade deficit of $148 billion
In 1984 the U.S. unilaterally lowered its tariffs against many states in the Caribbean Basin, as part of its Caribbean Basin Initiative.
Free Trade Policies were not designed to promote Wealth in the United States but rather to promote Democracy through out the developing countries.
To that means it has worked very well while at the same time here in America our freedoms are diminishing and being challenged daily.
BTW: USA is the only country with 0% tariffs