Ronald Reagan: An Autopsy
By Murray N. Rothbard
First published in Liberty, Vol. 2, No. 4, March 1989.
The Reagan Years: Libertarian Rhetoric, Statist Policies
How did Reagan manage to pursue egregiously statist policies in the name of liberty and of “getting government off our backs?” How was he able to follow this course of deception and mendacity?
Don’t try to get Ronnie off the hook by blaming Congress. Like the general public – and all too many libertarians – Congress was merely a passive receptacle for Ronnie’s wishes. Congress passed the Reagan budgets with a few marginal adjustments here and there – and gave him virtually all the legislation, and ratified all the personnel, he wanted. For one Bork there are thousands who made it. The last eight years have been a Reagan Administration for the Gipper to make or break.
There was no “Reagan Revolution.” Any “revolution” in the direction of liberty (in Ronnie’s words “to get government off our backs”) would reduce the total level of government spending. And that means reduce in absolute terms, not as proportion of the gross national product, or corrected for inflation, or anything else. There is no divine commandment that the federal government must always be at least as great a proportion of the national product as it was in 1980. If the government was a monstrous swollen Leviathan in 1980, as libertarians were surely convinced, as the inchoate American masses were apparently convinced and as Reagan and his cadre claimed to believe, then cutting government spending was in order. At the very least, federal government spending should have been frozen, in absolute terms, so that the rest of the economy would be allowed to grow in contrast. Instead, Ronald Reagan cut nothing, even in the heady first year, 1981.
At first, the only “cut” was in Carter’s last-minute loony-tunes estimates for the future. But in a few short years, Reagan’s spending surpassed even Carter’s irresponsible estimates. Instead, Reagan not only increased government spending by an enormous amount – so enormous that it would take a 40 percent cut to bring us back to Carter’s wild spending totals of 1980 – he even substantially increased the percentage of government spending to GNP. That’s a “revolution”?
The much-heralded 1981 tax cut was more than offset by two tax increases that year. One was “bracket creep,” by which just inflation wafted people into higher tax brackets, so that with the same real income (in terms of purchasing power) people found themselves paying a higher proportion of their income in taxes, even though the official tax rate went down. The other was the usual whopping increase in Social Security taxes which, however, don’t count, in the perverse semantics of our time, as “taxes”; they are only “insurance premiums.” In the ensuing years the Reagan Administration has constantly raised taxes – to punish us for the fake tax cut of 1981 – beginning in 1982 with the largest single tax increase in American history, costing taxpayers $100 billion.
The bottom line is that tax revenues have gone up an enormous amount under the eight years of Reagan; the only positive thing we can say for them is that revenues as percentage of the gross national product are up only slightly since 1980. The result: the monstrous deficit, now apparently permanently fixed somewhere around $200 billion, and the accompanying tripling of the total federal debt in the eight blessed years of the Reagan Era. Is that what the highly touted “Reagan Revolution” amounts to, then? A tripling of the national debt?
We should also say a word about another of Ronnie’s great “libertarian” accomplishments. In the late 1970’s, it became obvious even to the man in the street that the Social Security System was bankrupt, kaput. For the first time in fifty years there was an excellent chance to get rid of the biggest single racket that acts as a gigantic Ponzi scheme to fleece the American taxpayer. Instead, Reagan brought in the famed “Randian libertarian” Alan Greenspan, who served as head of a bipartisan commission, performing the miracle of “saving Social Security” and the masses have rested content with the system ever since. How did he “save” it? By raising taxes (oops “premiums”), of course; by that route, the government can “save” any program. (Bipartisan: both parties acting in concert to put both of their hands in your pocket.)
The way Reagan-Greenspan saved Social Security is a superb paradigm of Reagan’s historical function in all areas of his realm; he acted to bail out statism and to co-opt and defuse any libertarian or quasi-libertarian opposition. The method worked brilliantly, for Social Security and other programs.
How about deregulation? Didn’t Ronnie at least deregulate the regulation-ridden economy inherited from the evil Carter? Just the opposite. The outstanding measures of deregulation were all passed by the Carter Administration, and, as is typical of that luckless President, the deregulation was phased in to take effect during the early Reagan years, so that the Gipper could claim the credit. Such was the story with oil and gas deregulation (which the Gipper did advance from September to January of 1981); airline deregulation and the actual abolition of the Civil Aeronautics Board, and deregulation of trucking. That was it.
The Gipper deregulated nothing, abolished nothing. Instead of keeping his pledge to abolish the Departments of Energy and Education, he strengthened them, and even wound up his years in office adding a new Cabinet post, the Secretary of Veterans Affairs. Overall, the quantity and degree of government regulation of the economy was greatly increased and intensified during the Reagan years. The hated OSHA, the scourge of small business and at the time the second most-hated agency of federal government (surely you need not ask which is the first most-hated), was not only not abolished; it too was strengthened and reinforced. Environmentalist restrictions were greatly accelerated, especially after the heady early years when selling off some public lands was briefly mentioned, and the proponents of actually using and developing locked-up government resources (James Watt, Anne Burford, Rita Lavelle) were disgraced and sent packing as a warning to any future “anti-environmentalists.”
The Reagan Administration, supposedly the champion of free trade, has been the most protectionist in American history, raising tariffs, imposing import quotas, and – as another neat bit of creative semantics – twisting the arms of the Japanese to impose “voluntary” export quotas on automobiles and microchips. It has made the farm program the most abysmal of this century: boosting price supports and production quotas, and paying many more billions of taxpayer money to farmers so that they can produce less and raise prices to consumers.
And we should never forget a disastrous and despotic program that has received unanimous support from the media and from the envious American public: the massive witch hunt and reign of terror against the victimless non-crime of “insider trading.” In a country where real criminals – muggers, rapists, and “inside” thieves – are allowed to run rampant, massive resources and publicity are directed toward outlawing the use of one’s superior knowledge and insight in order to make profits on the market.
In the course of this reign of terror, it is not surprising that freedom of speech was the first thing to go by the boards. Government spies and informers busily report conversations over martinis (“Hey Joe, I heard that XYZ Corp. is going to merge with ABC.”) All this is being done by the cartelizing and fascistic Securities and Exchange Commission, the Department of Justice and its much-hailed Savanarola in New York, Rudolf Giuliani. All this is the work of the beloved Gipper, the “free-market,” “libertarian” Reagan Administration. And where are the “conservative libertarians”? Where are the “free market economists” to point this out and condemn it?
Foreign aid, a vast racket by which American taxpayers are mulcted in order to subsidize American export firms and foreign governments (mostly dictatorships), has been vastly expanded under Reagan. The Administration also encouraged the nation’s banks to inflate and pour money down Third World rat-holes; then bailed out the banks and tin-pot socialist dictatorships at the expense of U.S. taxpayers (via tax increases) and consumers (via inflation). Since the discrediting of Friedmanite monetarism by the end of the first Reagan term, the original monetarist policy of allowing the dollar to fluctuate freely has been superseded by Keynesian Secretary of Treasury James Baker, who has concerted with foreign central banks to try to freeze the dollar within various zones. The interference has been, as usual, futile and counterproductive, but that will not stop the soon-to-be even more powerful Baker from trying to fulfill, or at least move strongly toward, the old Keynesian dream of one world fiat paper currency (or at least fixed exchange rates of the various national currencies) issued by one world Central Bank – in short, economic world government.
But didn’t Ronnie “bring down inflation”? Sure, but he did it, not by some miracle, but the old-fashioned way: by the steepest recession (read: depression) since the 1930s. And now, as a result of his inflationary monetary policies, inflation is back with a roar – which the Teflon President will leave as one of his great legacies to the Bush Administration.
And then there is another charming legacy: the reckless inflationary course, encouraged by the Reagan Administration, of the nation’s savings-and-loan banks. Virtually the entire industry is now bankrupt, and FDIC – the federal agency supposedly “insuring” S&L depositors – is bankrupt. Instead of allowing the banks and their deluded depositors to pay the price of their profligacy, everyone of both parties, including our “free-market” Reaganauts, is prepared to use taxpayer money or the printing press to bail out the entire industry – to the tune of an estimated 50 to 100 billion dollars. (These estimates, by the way, come from government sources, which notoriously underestimate future costs of their programs.)
I have been cleaving to the strictly economic realm because even the staunchest pro-Reagan libertarian will not dare to claim that Ronnie has been a blessing for civil liberties. On the contrary. In addition to his reign of terror on Wall Street (who cares about the civil liberties of stock traders anyway?), Reagan worked to escalate toward infinity the insane “war against drugs.” Far from the 1970s movement toward repealing marijuana laws, an ever greater flow of men and resources – countless billions of dollars – are being hysterically poured into combating a drug “problem” that clearly gets worse in direct proportion to the intensity of the “war.”
The outbreak of drug fascism, moreover, is a superb illustration of the interconnectedness of civil liberty and economic freedom. Under cover of combating drugs, the government has cracked down on our economic and financial privacy, so that carrying cash has become prima fade evidence of “laundering” drug money. And so the government steps up its long-cherished campaign to get people to abstain from cash and into using government-controlled banks. The government is already insinuating foreign exchange controls – now the legal obligation to “report” large amounts of cash taken out of the country – into our personal and economic life.
And every day more evil drugs are being found that must be denounced and outlawed: the latest is the dread menace of anabolic steroids. As part of this futile war, we are being urged by the Reaganites to endure compulsory urine testing (supervised, of course, since otherwise the testee might be able to purchase and substitute black market drug-free urine). In this grotesque proposal, government is not only not off our backs, it is now also insisting on joining us in the bathroom.
Perhaps the Gipper cannot be directly blamed – but certainly he has set the moral climate – for the increasingly savage Puritanism of the 1980s: the virtual outlawry of smoking, the escalating prohibition of pornography, even the partial bringing back of Prohibition (outlawing drunken driving, raising the legal drinking age to 21, making bartenders – or friendly hosts – legally responsible for someone else’s drunken driving, etc.).
Under Reagan, the civil liberties balance has been retipped in favor of the government and against the people: restricting our freedom to obtain government documents under the Freedom of Information Act and stepping up the penalties on privately printed and disseminated news about activities of the government, on the one hand; more “freedom” for our runaway secret police, the CIA, to restrict the printing of news, and to wiretap private individuals, on the other. And to cap its hypocrisy, as it escalated its war on drugs, the Reagan Administration looked the other way on drug running by its own CIA.
On foreign policy, the best we can say about Ronnie is that he did not launch World War III. Apart from that, his foreign policy was a series of murdering blunders:
His idiotic know-nothing intervention into the cauldron of Lebanon, resulting in the murder of several hundred US Marines.
His failed attempt – lauded by Reaganites ever since – to murder Colonel Khadafy by an air strike – and succeeding instead in slaying his baby daughter, after which our media sneered at Khadafy for looking haggard, and commented that the baby was “only adopted.”
His stumblebum intervention into the Persian Gulf, safeguarding oil tankers of countries allied to Iraq in the Iraq–Iran war. (Ironically, the US. imports practically no oil from the Gulf, unlike Western Europe and Japan, where there was no hysteria and who certainly sent no warships to the Gulf.) In one of the most bizarre events in the history of warfare, the Iraqi sinking of the U.S.S. Stark was dismissed instantly – and without investigation, and in the teeth of considerable evidence to the contrary – as an “accident,” followed immediately by blaming Iran (and using the sinking as an excuse to step up our pro-Iraq intervention in the war). This was followed by a US warship’s sinking of a civilian Iranian airliner, murdering hundreds of civilians, and blaming – you guessed it! – the Iranian government for this catastrophe. More alarming than these actions of the Reagan Administration was the supine and pusillanimous behavior of the media, in allowing the Gipper to get away with all this.
As we all know only too well, the height of Reagan’s Teflon qualities came with Iran-Contra. At the time, I navely thought that the scandal would finish the bastard off. But no one saw anything wrong with the Administration’s jailing private arms salesmen to Iran, while at the very same time engaging in arms sales to Iran itself. In Reagan’s America, apparently anything, any crookery, any aggression or mass murder, is OK if allegedly performed for noble, patriotic motives. Only personal greed is considered a no-no.
I have not yet mentioned the great foreign-policy triumph of the Reagan Administration: the invasion and conquest of tiny Grenada, a pitiful little island-country with no army, air force, or navy. A “rescue” operation was launched to save US medical students who never sought our deliverance. Even though the enemy consisted of a handful of Cuban construction workers, it still took us a week to finish the Grenadans off, during the course of which the three wings of our armed forces tripped over each other and our military distinguished itself by bombing a Grenadan hospital. The operation was as much a botch as the Carter attempt to rescue the American hostages. The only difference was that this time the enemy was helpless.
But we won didn’t we? Didn’t we redeem the US loss in Vietnam and allow America to “stand tall”? Yes, we did win. We beat up on a teeny country; and even botched that! If that is supposed to make Americans stand tall, then far better we sit short. Anyway, it’s about time we learned that Short is Beautiful.
The US war against the Sandinistas on the other hand, which has been conducted at enormous expense and waged hand-in-hand with Guatemalan, Honduran, and Salvadoran dictators, is going down the drain, despite illegal CIA mining of harbors and injury to neutral shipping. Even the nearly comatose American public is giving up on the idea of supporting bandit guerrillas, so long as they are anti-Communist, despite the best efforts of Ollie and Secord and Singlaub and Abrams and all the rest of the war crowd.
The Reagan Administration’s continued aid and support to Pol Pot in Cambodia, the most genocidal butcher of our time, is more reprehensible but less visible to most Americans. As a result, Pol Pot’s thugs are mobilizing at this very moment on the Thai border to return and take over Cambodia as soon as the Vietnamese pull out, presumably to renew their bizarre mass murders. But you see, that’s okay with the Reaganites because the Cambodian Commies are guerrilla fighters against the Vietnamese (pro-Soviet) Commies, who by definition are evil. Pol Pot’s butchers as “freedom fighters” show us that, in the arsenal of the Reaganite Right, “freedom,” like “taxes” and many other crucial words, means, as in the case of Humpty Dumpty, whatever they choose it to.
Grenada was the perfect war as far as many conservatives (and apparently much of the American public) were concerned: it was quick and easy to win, with virtually no risk of loss, and allowed ample opportunities to promote the military (and their Commander-in-Chief) as heroes while bragging up the victory on television – in short, allowing the U.S. to glory in its status as a bully. (It helped eradicate the awful memory of Vietnam, which was the perfect war for American centrist liberals: virtually impossible to win, horribly expensive in terms of men and property – and best of all, it could go on forever without resolution, like the War on Poverty, fueling their sense of guilt while providing safe but exciting jobs for members of their techno-bureaucratic class.)
While the American masses do not want war with Russia or even aid to the bandit Contras, they do want an ever-expanding military and other aggravated symbols of a “strong,” “tough” America, an America that will, John Wayne-like, stomp on teeny pests like Commie Grenada, or, perhaps, any very small island that might possess the tone and the ideology of the Ayatollah.
Setting the Stage: The Anti-Government Rebellion of the 1970s
I am convinced that the historic function of Ronald Reagan was to co-opt, eviscerate and ultimately destroy the substantial wave of anti-governmental, and quasi-libertarian, sentiment that erupted in the U.S. during the 1970s. Did he perform this task consciously? Surely too difficult a feat for a man barely compos. No, Reagan was wheeled into performing this task by his Establishment handlers.
The task of co-optation needed to be done because the 1970s, particularly 1973–75, were marked by an unusual and striking conjunction of crisis – crises that fed on each other to lead to a sudden and cumulative disillusionment with the federal government. It was this symbiosis of anti-government reaction that led me to develop my “case for libertarian optimism” during the mid-1970’s, in the expectation of a rapid escalation of libertarian influence in America.
1973–74 saw the abject failure of the Nixon wage-price control program, and the development of something Keynesians assumed could never happen: the combination of double-digit inflation and a severe recession. High unemployment and high inflation happened again, even more intensely, during the greater recession of 1979–82. Since Keynesianism rests on the idea that government should pump in spending during recessions and take out spending during inflationary booms, what happens when both occur at the same time? As Rand would say: Blankout! There is no answer. And so, there was disillusionment in the government’s handling of the macro-economy, deepening during the accelerating inflation of the 1970s and the beginnings of recession in 1979.
At the same time, people began to be fed up, increasingly and vocally, with high taxes: income taxes, property taxes, sales taxes, you name it. Especially in the West, an organized tax rebel movement developed, with its own periodicals and organizations However misguided strategically, the spread of the tax rebellion signaled a growing disillusion with big government. I was privileged to be living in California during the election year of 1978, when Proposition 13 was passed. It was a genuinely inspiring sight. In the face of hysterical opposition and smears from the entire California Establishment Democratic and Republican, Big Business and labor, academia, economists, and all of the press the groundswell for Prop 13 burgeoned. Everyone was against it but the people. If the eventual triumph of Ronald Reagan is the best case against “libertarian populism,” Prop. 13 was the best case in its favor.
Also exhilarating was the smashing defeat of US imperialism in Vietnam in 1975 – exhilarating because this first loss of a war by the United States, many of us believed, was bound to get Americans to rethink the disastrous warmongering bipartisan foreign policy that had plagued us since the unlamented days of Woodrow Wilson.
On the civil liberties front, the de facto legalization of marijuana was a sign that the nonsense of drug prohibition would soon be swept away. (Ye gods! Was that only a decade ago?) Inflationary recession; high taxes; prohibition laws; defeat in foreign war; across the board, the conditions seemed admirable for a growing and triumphant libertarianism.
And to top it off, the Watergate crisis (my particular favorite) destroyed the trust of the American masses in the Presidency. For the first time in over a hundred years, the concept of impeachment of the President became, first thinkable, and then a living and glorious process. For a while, I feared that Jimmy Carter, with his lovable cardigan sweater, would restore Americans’ faith in their president, but soon that fear proved groundless.
Surely, it is no accident that it was precisely in this glorious and sudden anti-government surge that libertarian ideas and libertarian scholarship began to spread rapidly in the United States. And it was in 1971 that the tiny Libertarian Party emerged, in 1972 that its first, embryonic presidential candidacy was launched, and 1973 when its first important race was run, for mayor of New York City. The Libertarian Party continued to grow rapidly, almost exponentially, during the 1970s, reaching a climax with the Clark campaign for governor of California during the Prop 13 year of 1978, and with the Clark campaign for the Presidency in 1980. The morning my first article on libertarianism appeared in the New York Times in 1971, a very bright editor at Macmillan, Tom Mandel, called me and asked me to write a book on the subject (it was to become For a New Liberty). Not a libertarian himself, Mandel told me that he believed that libertarianism would become a very important ideology in a few years – and he turned out to be right.
So libertarianism was on a roll in the 1970s. And then Something Happened.
Enter the Neocons
What happened was Ronald Wilson Blithering Reagan. Obviously Reagan did not suddenly descend out of the clouds in 1980. He had been the cherished candidate of the conservative movement, its chosen route to power, ever since Goldwater’s defeat. Goldwater was too blunt and candid, too much an un-handleable Real Person. What was needed was a lovable, manipulable icon. Moreover, Goldwater’s principles were too hard-edged: he was way too much a domestic libertarian, and he was too much an eager warmonger. Both his libertarianism and his passion for nuclear confrontation with the Soviet Union scared the bejesus out of the American masses, as well as the more astute leadership of the conservative movement.
A reconstituted conservative movement would have to drop any libertarian ideology or concrete policies, except to provide a woolly and comfortable mood for suitably gaseous anti-government rhetoric and an improved foreign policy that would make sure that many more billions would go into the military-industrial complex, to step up global pressure against Communism, but avoiding an actual nuclear war. This last point was important: As much as they enjoy the role of the bully, neither the Establishment nor the American people want to risk nuclear war, which might, after all, blow them up as well. Once again, Ronnie Reagan looked like the Answer.
Two important new ingredients entered into, and helped reshape, the conservative movement during the mid 1970’s. One was the emergence of a small but vocal and politically powerful group of neo-conservatives (neocons), who were able, in a remarkably short time, to seize control of the think tanks, the opinion-molding institutions, and finally the politics, of the conservative movement. As ex-liberals, the neocons were greeted as important new converts from the enemy. More importantly, as ex-Trotskyites, the neocons were veteran politicos and organizers, schooled in Marxian cadre organizing and in manipulating the levers of power. They were shrewdly eager to place their own people in crucial opinion molding and money-raising positions, and in ousting those not willing to submit to the neocon program. Understanding the importance of financial support, the neocons knew how to sucker Old Right businessmen into giving them the monetary levers at their numerous foundations and think tanks.
The only group willing and able to challenge the neocons on their own moralizing on philosophic turf was, of course, the tiny handful of libertarians; and outright moral libertarianism, with its opposition to statism, theocracy, and foreign war, could never hope to get to first base with conservative businessmen, who, even at the best of times during the Old Right era, had never been happy about individual personal liberty, (e.g. allowing prostitution, pornography, homosexuality, or drugs) or with the libertarians’ individualism and conspicuous lack of piety toward the Pentagon, or toward the precious symbol of the Nation-State, the US flag.
The neocons were (and remain today) New Dealers, as they frankly describe themselves, remarkably without raising any conservative eyebrows. They are what used to be called, in more precise ideological days, “extreme right-wing Social Democrats.” In other words, they are still Roosevelt-Truman-Kennedy-Humphrey Democrats. Their objective, as they moved (partially) into the Republican Party and the conservative movement, was to reshape it to become, with minor changes, a Roosevelt-Truman-etc. movement; that is, a liberal movement shorn of the dread “L” word and of post-McGovern liberalism. To verify this point all we have to do is note how many times Roosevelt, Truman, Kennedy, et al., properly reviled by conservatives while they were alive, are now lauded, even canonized, by the current neocon-run movement, from Ronnie Reagan on down. And no one calls them on this Orwellian revision of conservative movement history.
As statists-to-the-core the neocons had no problem taking the lead in crusades to restrict individual liberties, whether it be in the name of rooting out “subversives,” or of inculcating broadly religious (“Judeo-Christian”) or moral values. They were happy to form a cozy alliance with the Moral Majority, the mass of fundamentalists who entered the arena of conservative politics in the mid-1970s. The fundamentalists were goaded out of their quietist millenarian dreams (e.g., the imminent approach of Armageddon) and into conservative political action by the accumulation of moral permissivism in American life. The legalization of abortion in Roe v. Wade was undoubtedly the trigger, but this decision came on top of a cumulative effect of the sexual revolution, the militant homosexual movement “out of the closet” and into the streets, the spread of pornography, and the visible decay of the public school system. The entry of the Moral Majority transformed American politics, not the least by furnishing the elite cadre of neocons with a mass base to guide and manipulate.
In economic matter, the neocons showed no more love of liberty, though this is obscured by the fact that the neocons wish to trim the welfare state of its post-Sixties excrescences, particularly since these were largely designed to aid black people. What the neocons want is a smaller, more “efficient” welfare state, within which bounds they would graciously allow the market to operate. The market is acceptable as a narrow instrumental device; their view of private property and the free market is essentially identical to Gorbachev’s in the Soviet Union.
Why did the Right permit itself to be bamboozled by the neocons? Largely because the conservatives had been inexorably drifting Stateward in the same manner. In response to the crushing defeat of Goldwater, the Right had become ever less libertarian and less principled, and ever more attuned to the “responsibilities” and moderations of Power. It is a far cry from three decades ago when Bill Buckley used to say that he too is an “anarchist” but that we have to put off all thoughts of liberty until the “international Communist conspiracy” is crushed. Those old Chodorovian libertarian days are long gone, and so is National Review as any haven for libertarian ideas. War mongering, militarism, theocracy, and limited “free” markets – this is really what Buckleyism amounted to by the late 1970s.
The Reagan candidacy of 1980 was brilliantly designed to weld a coalition providing the public’s instinctive anti-government mood with sweeping, but wholly nonspecific, libertarian rhetoric, as a convenient cover for the diametrically opposite policies designed to satisfy the savvy and politically effective members of that coalition: the neocons, the Buckleyite cons, the Moral Majority, the Rockefellers, the military-industrial complex, and the various Establishment special interests always clustering at the political trough.
Intellectual Corruption
In the face of the stark record, how were the Reaganites able to get away with it? Where did Ronnie get his thick coat of Teflon? Why was he able to follow statist policies and yet convince everyone, including many alleged libertarians, that he was successfully pursuing a “revolution” to get government off our backs?
The essential answer was provided a century ago by Lysander Spooner. Why does the public obey the State, and go further to endorse statist policies that benefit the Power Elite at the public’s own expense? The answer, wrote Spooner, is that the State is supported by three powerful groups: knaves, who know what is going on and benefit from State rule; dupes, who are fooled into thinking that State rule is in their and everyone else’s interest; and cowards, who know the truth but are afraid to proclaim that the emperor has no clothes. I think we can refine Spooner’s analysis and merge the Knave and Coward categories; after all, the renegade sellout confronts the carrot and the stick: the carrot of wealth, cushy jobs, and prestige if he goes along with the Emperor; and the stick of scorn, exclusion from wealth, prestige, and jobs – and perhaps worse – if he fails to go along. The reason that Reagan got away with it – in addition to his aw-shucks “lovability” – is that various powerful groups were either duped or knave-cowardly corrupted into hailing his alleged triumphs and deep-sixing his evident failures.
First, the powerful opinion-molding media. It is conventional wisdom that media people are biased in favor of liberalism, No doubt. But that is not important, because the media, especially elite media who have the most to lose, are also particularly subject to the knave/coward syndrome. If they pander to Reaganism, they get the approval of the deluded masses, their customers, and they get the much-sought-after access to the President and to other big-wigs in government. And access means scoops, carefully planted exclusive leaks, etc. Any sort of effective opposition to the President means, on the other hand, loss of access; the angering of Reagan-deluded masses; and also the angering of their bosses, the owners of the press and television, who are far more conservative than their journalist employees.
One of Reagan’s most notable achievements was his emasculation of the liberal media because of his personal popularity with the masses. Note, for example, the wimpy media treatment of Iran-Contra as compared to their glorious attack on Watergate. If this is liberal media bias, then the liberals need to be saved from their friends.
But we must not under weigh the importance of the traitorous role performed by quasi-libertarian intellectuals and free-market economists during the Reagan years. While their institutions were small and relatively weak, the power and consistency of libertarian thought had managed to bring them considerable prestige and political influence by 1980 – especially since they offered an attractive and consistent alternative to a statist system that was breaking down on all fronts.
But talk about your Knaves! In the history of ideological movements, there have always been people willing to sell their souls and their principles. But never in history have so many sold out for so pitifully little. Hordes of libertarian and free-market intellectuals and activists rushed to Washington to whore after lousy little jobs, crummy little grants, and sporadic little conferences. It is bad enough to sell out; it is far worse to be a two-bit whore. And worst of all in this sickening spectacle were those who went into the tank without so much as a clear offer: betraying the values and principles of a lifetime in order to position themselves in hopes of being propositioned. And so they wriggled around the seats of power in Washington. The intellectual corruption spread rapidly, in proportion to the height and length of jobs in the Reagan Administration. Lifelong opponents of budget deficits remarkably began to weave sophisticated and absurd apologias, now that the great Reagan was piling them up, claiming, very much like the hated left-wing Keynesians of yore, that “deficits don’t matter.”
Shorn of intellectual support, the half-formed libertarian instincts of the American masses remained content with Reaganite rhetoric, and the actual diametrically opposite policies got lost in the shuffle.
Reagan’s Legacy
Has the Reagan Administration done nothing good in its eight ghastly years on earth, you might ask? Yes, it has done one good thing; it has repealed the despotic 55-mile-per-hour highway speed limit. And that is it.
It is generally agreed by political analysts that the ideological mood of the public, after eight years of Reaganism, is in support of economic liberalism (that is, an expanded welfare state), and social conservatism (that is, the suppression of civil liberties and the theocratic outlawing of immoral behavior). And, on foreign policy, of course, they stand for militaristic chauvinism. After eight years of Ronnie, the mood of the American masses is to expand the goodies of the welfare-warfare state (though not to increase taxes to pay for these goodies), to swagger abroad and be very tough with nations that can’t fight back, and to crack down on the liberties of groups they don’t like or whose values or culture they disagree with.
It is a decidedly unlovely and unlibertarian wasteland, this picture of America 1989, and who do we have to thank for it? Several groups: the neocons who organized it; the vested interests and the Power Elite who run it; the libertarians and free marketeers who sold out for it; and above all, the universally beloved Ronald Wilson Reagan, Who Made It Possible.
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