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SMU Economics professor claims Ronald Reagan should be considered the great American socialist

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Omaha Steve Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-21-09 03:35 PM
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SMU Economics professor claims Ronald Reagan should be considered the great American socialist

http://www.examiner.com/x-2071-DC-Special-Interests-Examiner~y2009m3d21-SMU-Economics-professor-claims-Ronald-Reagan-should-be-considered-the-great-American-socialist?cid=exrss-DC-Special-Interests-Examiner

March 21, 7:48 AM



Dr. Ravi Batra, a professor of economics at Southern Methodist University asserts in his books that Ronald Reagan “…was the first Republican socialist - and a great one, because his wealth transfer occurred on a massive scale. His accomplishment dwarfs even FDR's, and if today the small businessman suffers a crippling tax burden, he must thank Reagan the redistributionist. However, FDR took pains to help the poor, while Reagan took pains to help the wealthiest like himself.”

Socialism has become a favorite pejorative of those opposing the Obama economic policy. House Minority Leader John Boehnner (R-OH) recently called the Obama stimulus package "one big down payment on a new American socialist experiment."

Batra claims that Reagan’s “…redistributionist obsession led to a perversity in the law. The wealthiest faced a 28 percent tax rate, while those with lower incomes faced a 33 percent rate; in addition, the bottom rate climbed from 11 percent to 15 percent. For the first time in history, the top rate fell and the bottom rate rose simultaneously. Even unemployment compensation was not spared. The jobless had to pay income tax on their benefits. A year later, the man who would not spare unemployment compensation from taxation called for a cut in the capital gains tax. Thus, Reagan was a staunch socialist, totally committed to his cause of wealth redistribution towards the affluent.”

The article highlighting these assertions is based on Dr. Batra's two books, The New Golden Age and Greenspan's Fraud.

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Why Syzygy Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-21-09 03:38 PM
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1. Isn't that the truth.
We're still paying. Wasn't it also during his term that the calculation method for unemployment was *modified*, so that a 12% unemployment was determined to be 6%?
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gratuitous Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-21-09 03:40 PM
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2. Delicious
Look for sputtering outrage to erupt from the usual corners.
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FLyellowdog Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-21-09 03:43 PM
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3. There you have it. Knew it all along. n/t
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Overseas Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-21-09 03:43 PM
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4. Yes he was a major class warrior on behalf of the Top Five Percent.
He really speeded up the whole process of Trickle Up Economics.

While cloaking it all in lovely "morning in America" rhetoric.

Covert wars, high treason, soaring deficits, and tax breaks for the rich. Grandpa Ronnie's true legacy.

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baldguy Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-21-09 03:45 PM
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5. When wealth is transferred from the rich to the poor, it's called "welfare".
When wealth is transferred from the poor to the rich, it's called "entrepreneurship".
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mnhtnbb Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-21-09 03:52 PM
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6. LOL. St. Ronnie, the socialist.
:rofl:
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DrDan Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-21-09 05:05 PM
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7. that ought to get hannity's head a-spinn'
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Sebastian Doyle Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-21-09 05:35 PM
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8. Dr. Batra is a frequent guest on Thom Hartmann's radio program
Always a great listen when he's on. (Not that Thom's show isn't ALWAYS good, of course)
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AdHocSolver Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-21-09 05:53 PM
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9. And, Greenspan was one of the architects of Reagan's "socialist" plan.
Greenspan's tenure at the Fed enabled him to artificially keep interest rates low. Low interest rates were designed to increase bank profits by paying practically nothing to depositors. Banks were charging usurious rates on credit card debt. Low interest on bank deposits was designed to push people to withdraw their savings from insured accounts and buy stocks.

This large influx of cash into the stock market "pumped" the stock prices ("price inflation") which lured more people into the stock market to enable insider traders to make huge profits.

Low interest rates also pumped the real estate markets. People were encouraged to pay more for houses than they could really afford since the payments are lower with low interest rates, and "you can always sell to someone who will pay more for your house".

Everytime I read someone quoting Greenspan saying "We made a mistake.", I want to puke. He knew damn well what was going on. He is the guy who advised Reagan and Daddy Bush on how to pull off this theft.

By the way, Batra is one of the honest, competent economists. So are Kevin Phillips, and Stiglitz. Just about all the rest are either incompetent or selling snake oil.
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struggle4progress Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-21-09 06:22 PM
Response to Original message
10. Calling Reagan a "socialist" doesn't contribute to any coherent analysis
but I suppose it does illustrate America's lack of a useful political vocabulary. Batra's use of the word "socialism" does not at all reflect the word, as it has been used by people who have called themselves "socialists." Batra apparently wants to use the word "socialist" to indicate something about "wealth transfer." But the forced extraction of value from workers threatened by starvation and armed guards (a situation not always uncommon in historical economies) represents a wealth transfer, against which the first socialists rebelled. So Batra uses the word without historical insight. In fact, his usage of the word is intended only to stir up controversy: no self-identified socialist will agree to that usage, nor will the conservatives, who have spent decades using "socialist" as if it were a synonym for "dictatorial" or "totalitarian."



Why Socialism?
by Albert Einstein
This essay was originally published in the first issue of Monthly Review (May 1949)

... nowhere have we really overcome .. "the predatory phase" of human development ... The economic anarchy of capitalist society as it exists today is .. the real source of the evil. We see before us a huge community of producers the members of which are unceasingly striving to deprive each other of the fruits of their collective labor — not by force, but on the whole in faithful compliance with legally established rules. In this respect, it is important to realize that the means of production — that is to say, the entire productive capacity that is needed for producing consumer goods as well as additional capital goods — may legally be, and for the most part are, the private property of individuals ... Private capital tends to become concentrated in few hands, partly because of competition among the capitalists, and partly because technological development and the increasing division of labor encourage the formation of larger units of production at the expense of smaller ones. The result of these developments is an oligarchy of private capital the enormous power of which cannot be effectively checked even by a democratically organized political society. This is true since the members of legislative bodies are selected by political parties, largely financed or otherwise influenced by private capitalists who, for all practical purposes, separate the electorate from the legislature. The consequence is that the representatives of the people do not in fact sufficiently protect the interests of the underprivileged sections of the population. Moreover, under existing conditions, private capitalists inevitably control, directly or indirectly, the main sources of information (press, radio, education). It is thus extremely difficult, and indeed in most cases quite impossible, for the individual citizen to come to objective conclusions and to make intelligent use of his political rights ...

there is only one way to eliminate these grave evils, namely through the establishment of a socialist economy, accompanied by an educational system which would be oriented toward social goals. In such an economy, the means of production are owned by society itself and are utilized in a planned fashion. A planned economy, which adjusts production to the needs of the community, would distribute the work to be done among all those able to work and would guarantee a livelihood to every man, woman, and child ... http://www.monthlyreview.org/598einstein.php
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