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David Stockman: Ronald Reagan’s Legacy Is Being Abused Over Bush Tax Cuts

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The US Senate plans to vote on the Bush Tax Cuts tomorrow there is little question that the stakes are high. Those on the right argue that cutting tax cuts would only further the current economic recession, and those on the left argue that a large reason for the current budget deficit is in fact tax breaks for the wealthy. On tonight’s Countdown, Keith Olbermann had on as guest David Stockman, better known as the budget director under Ronald Reagan, also known as the patron saint of supply-side economics.

As we’ve reported before. Mr. Stockman is still a proud member of the Republican party but vociferously opposes the Bush Tax Cuts (as well as the alleged proliferate spending by the Democrats.) And while its clear why Olbermann had him on as guest to his show — when was the last time he interviewed a dissenting opinion? — Stockman’s reasoned reply is worth another look.

Stockman’s comments were made more relevant given Howard Kurtz‘s interview with former Bush Communications Director Dan Bartlett in which the former Bush aide admitted that the Bush Tax Cuts was a trap laid for the coming administration:

“We knew that, politically, once you get it into law, it becomes almost impossible to remove it,” says Dan Bartlett, Bush’s former communications director. “That’s not a bad legacy. The fact that we were able to lay the trap does feel pretty good, to tell you the truth.”

Stockman recoiled at that notion, and, when asked how he felt Mr. Reagan fit into the Bush Tax Cuts, Stockman was clear:

Ronald Reagan believed in hard money, not money printing like theFed has been doing for the last ten or more years. He wanted prosperity from hard work, from investment, from entrepreneurial activity. We’ve only had bubbles and booms that were based on debt and money printing at the fed. Those are the opposite of what Ronald Reagan believed in the ’60s and the ’70s and as he went into the White House. And now you have all of these kind of supply siders who basically, I think, are totally distorting what the whole program really was about.

Watch the enlightening interview from MSNBC below:

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  • Greg

    The Republicans are a simulacrum, the perfect example of a party that does not exist.

  • Cecelia

    Ummm…you’re a little sketchy on Stockman’s expressed feelings re: the Reagan tax cuts in general, Reagan’s acumen on the subject in particular, starting in about 1985, aren’t you Colby?

    Stockman views on tax rates and their impact on the economy very much differs with….say…what Dan Barlett believes is vital to economic growth.

    But thanks for helping Olbermann turn a philosophical difference into a comic book cast of characters.

  • Elaine B

    Have you noticed just how groupie the Repo’s are on this site? Strange… very strange

  • sticks

    Elaine B said:
    Have you noticed just how groupie the Repo’s are on this site? Strange… very strange

    No, but I’ve noticed… You trolling around all day with nothing interesting to say…

  • http://twitter.com/pewestlake Paul Westlake

    Poor David Stockman, destined to go down in conservative annals as a traitor to the legacy of Ronald Reagan and a textbook example of a RINO. On the bright side, he HAS come to his senses. So there’s that! ;-)

  • Just4thefax

    Fact: Ronald Reagan was against big government. Big government spending. That includes what mentioned here about the fed printing money and spending for entitlements. Look quit spending money you don’t have. Tea Party is right on this all have to give but at 35% that it is now is high and realistically dropping it back to the 38% wouldn’t be a show stopper but to do this you need to drop Obamacare too. Every family’s portion is just close to 100K per household and it’s time to pay!

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  • http://www.facebook.com/people/Bill-Adkins/1585417987 Bill Adkins

    I voted for Ronald Reagan twice, 1980 and 1984. He was the right man for the job at the time. But he compromised against his better judgment in his selection of George HW Bush for vice president. And that was a catastrophe for the nation that negated every positive Reagan brought and, in George W. Bush, culminated in a backwards step all the way to 1929. Reagan would be mortified to be associated witht he Republicans today and he wouldn’t piss on a tealiban if that tealiban were on fire.

  • fenngibbon

    I seem to recall Stockman being on the outs with the Republicans even before the end of the Reagan administration, so the whole “ooh, former Reagan official attacks Republicans” trope doesn’t really work for me.

  • skyfet

    Someone needs to tell this jokers that Reagan raised tax.

  • The Lantern of Truth

    skyfet said:
    Someone needs to tell this jokers that Reagan raised tax.

    How you go ? This peoples have always tax small peoples not nogood rich loaded wealthful peoples ! is bad ! Kapeach .

  • The Lantern of Truth

    Bill Adkins said:
    Reagan would be mortified to be associated witht he Republicans today and he wouldn’t piss on a tealiban if that tealiban were on fire.

    This is an idiot .

  • http://www.facebook.com/people/Bill-Adkins/1585417987 Bill Adkins

    The Lantern of Truth said:
    This is an idiot .

    You don’t have to tell us – we recognize you as an idiot.

  • dhg

    1) This site needs a spam filter.

    2) This site needs an IQ test for those who want to comment.

    3) This site needs to have a policy of on topic comments or removal

    4) If these were put in place there would be no comments

  • possibly

    The Gop’s augment is so laughable.

    They claim the middle-class workers will find jobs with the crumbs that fall from the rich man’s table.

    If that’s true, why didn’t they hire anyone with that tax cut since December 2007?

  • Pablo

    possibly said:
    If that’s true, why didn’t they hire anyone with that tax cut since December 2007?

    Wait, I though we created 3 million jobs? You don’t believe that bullshit either, huh?

  • BlackWidow

    Elaine B said:
    Have you noticed just how groupie the Repo’s are on this site? Strange… very strange

    Stick around. You ain’t seen nothing yet!

  • skyfet

    I wonder what the tax cut did to the economy for the past 10yrs?
    Tuned surplus to deficit
    Record job losses.
    That’s what has happened.

  • BlackWidow

    Pablo said:
    Wait, I though we created 3 million jobs? You don’t believe that bullshit either, huh?

    Pablo do you have a link for that statistic?

  • cjd ohio 1

    joe biden

  • notsofast

    skyfet said:
    Record job losses.

    Under BHO, child!

    Obama Presides Over Most Jobs Lost Since 1940
    By Julia A. Seymour
    Business & Media Institute
    1/8/2010 11:03:00 AM

    Unemployment shot up in 2009 from 7.7 percent in January to 10.1 percent in October before settling at 10 percent in December. Behind those percentages were more than 4.1 million people who lost their jobs during the year. According to data from the Bureau of Labor Statistics, that’s the most job losses in a year since 1940. (BLS could only provide data from 1940-2009)

    YOU ARE A COWARD, skyshit!

  • Pablo

    BlackWidow said:
    Pablo do you have a link for that statistic?

    Sure.

  • notsofast

    BlackWidow said:
    Pablo do you have a link for that statistic?

    Poor dear, what happened to VP Bite Me’s prediction of a massive summer job creation?

    Biden Predicts 100K-200K Jobs Next Month
    Eric Kleefeld | April 23, 2010, 6:19PM

    Vice President Biden predicted today that the economy will add between 100,000-200,000 jobs next month, and between 250,000-500,000 jobs per month in time thereafter.
    Biden made his comments while campaigning for Mark Critz, the Democratic nominee in the May 18 special election for the House seat in Pennsylvania formerly held by the late Democratic Rep. John Murtha. “All in all we’re going to be creating somewhere between 100 and 200,000 jobs next month, I predict,” Biden said, according to the pool report from the Pittsburg Tribune-Review.

    Biden added that he’s “got in trouble” for a previous job growth prediction in March.
    “Even some in the White House said, ‘hey, don’t get ahead of yourself,’” said Biden. “Well I’m here to tell you some time in the next couple of months we’re going to be creating between 250,000 jobs a month and 500,000 jobs a month. Because I’m telling you something, folks. We caught a lot of bad breaks on the way down. We’re going to catch a few good breaks because of good planning on the way up.”

    Result?

    Over 283,000 jobs lost over the summer of 2010 ALONE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  • lazzzlo

    Mr. Stockman is still a proud member of the Republican party but vociferously opposes the Bush Tax Cuts (as well as the alleged proliferate spending by the Democrats.)

    Why is the proliferate spending by the Democrats alleged?

  • CosmosDan

    I saw Stockman on Colbert as well. It’s a shame that basic common sense seems to have little effect.

  • http://www.facebook.com/people/Bill-Adkins/1585417987 Bill Adkins

    notsofast said:
    Under BHO, child! Obama Presides Over Most Jobs Lost Since 1940By Julia A. SeymourBusiness & Media Institute1/8/2010 11:03:00 AM Unemployment shot up in 2009 from 7.7 percent in January to 10.1 percent in October before settling at 10 percent in December. Behind those percentages were more than 4.1 million people who lost their jobs during the year. According to data from the Bureau of Labor Statistics, that’s the most job losses in a year since 1940. (BLS could only provide data from 1940-2009) YOU ARE A COWARD, skyshit!

    Under BHO but because of the Republians. YOU ARE A DUMBASS, nutsofast,

  • skyfet

    @notsofast
    Let me break it down for ya, he Job losses that happens in early 2009 can’t be BO’s fault, because his policies were not activated yet. It was a continuation of the job loss that started in 07. There’s no need to be emotionally mad about this, its just facts.

  • skyfet

    @notsofast
    Still you didn’t respond to the surplus turning to deficit under W.
    By the way GDP is on the rise, the economy is recovering, but it’s not showing in job creation. Report released recently also states that Corporations are making the highest profit they’ve ever made in history. The economy is improving, but labor is dragging behind, that’s fact.

  • felixw

    David Stockman was a disaster as budget director, and his bungling of the position severely limited Reagan’s ability to cut spending. The most incompetent appointee in the Reagan administration, and — based on his track record — is clearly a major contributor to the deficit problem, not its solution. Anyone who takes his advice on economics is asking for trouble.

  • http://sharethisurlaboutglennbeck.com/ GlennBeckReview

    Paul Westlake says:
    “Poor David Stockman, destined to go down in conservative annals as a traitor to the legacy of Ronald Reagan and a textbook example of a RINO. On the bright side, he HAS come to his senses.”

    Paul, Stockman hasn’t changed at all. It’s many others on the right who have gone over the cliff to the right. I never did think that supply-side economics made sense; indeed it lead to the U.S. resembling a banana republic with the few holding the lion’s share of the wealth while the rest of us struggle to make ends meet.

  • notsofast

    skyfet said:
    @notsofast
    Let me break it down for ya, he Job losses that happens in early 2009 can’t be BO’s fault, because his policies were not activated yet. It was a continuation of the job loss that started in 07. There’s no need to be emotionally mad about this, its just facts.

    Hey, asshole, Barry got in in Jan 2009- break that down and live with it, you lying jerk.

    And this happened in 2010, shitforbrains:

    Deficit climbs to record under Obama’s budget
    $3.8 trillion budget: Jobs take priority; reaction swift
    February 02, 2010|By Carolyn Lochhead, Chronicle Washington Bureau

    Washington — President Obama’s $3.8 trillion budget blueprint for next year sets a new deficit record of $1.56 trillion, includes a big jobs program and rolls back Bush-era tax cuts for high-income Americans. The president sidestepped any major attack on chronic deficits, which would not drop below $700 billion in the next several years.

    Sales of existing homes plunged in July
    Record drop of 27 percent to the lowest level since 1995
    By ALAN ZIBEL, J.W. ELPHINSTONE
    updated 8/24/2010 6:56:56 PM ET

    WASHINGTON — Sales of previously occupied homes plunged last month to the lowest level in 15 years, despite the lowest mortgage rates in decades and bargain prices in many areas.
    July’s sales fell by more than 27 percent to a seasonally adjusted annual rate of 3.83 million, the National Association of Realtors said Tuesday. It was the largest monthly drop on records dating back to 1968, and sharp declines were recorded in all regions of the country.

    Obama Added More to National Debt in First 19 Months Than All Presidents from Washington Through Reagan Combined, Says Gov’t Data
    Wednesday, September 08, 2010
    By Terence P. Jeffrey, Editor-in-Chief
    http://cnsnews.com/news/article/72404

    (CNSNews.com) – In the first 19 months of the Obama administration, the federal debt held by the public increased by $2.5260 trillion, which is more than the cumulative total of the national debt held by the public that was amassed by all U.S. presidents from George Washington through Ronald Reagan.

    Record number in government anti-poverty programs
    Updated 8/30/2010 9:25 AM By Richard Wolf, USA TODAY
    WASHINGTON — Government anti-poverty programs that have grown to meet the needs of recession victims now serve a record one in six Americans and are continuing to expand.

    Posted on Fri, Oct. 15, 2010
    Record number of foreclosures in Sept. But, why?

    McClatchy Newspapers
    In a new foreclosure crisis that has gone national, attorneys general in all 50 states plus the District of Columbia have launched a sweeping probe of the country’s lenders, even as new figures showed banks repossessed a record number of homes in September.

    Record number of Americans living in poverty

    MSNBC.com
    September 16, 2010
    Record number of Americans living in poverty
    Census Bureau says 43.6 million people in 2009, up near 4 million in a year
    WASHINGTON — The number of people living in poverty in America rose by nearly 4 million to 43.6 million in 2009 — the largest figure in the 51 years for which poverty estimates are available — the Census Bureau said Thursday.

    Now kindly STFU, you Obama apologist, and stop lying for that loser you loser!

  • notsofast

    skyfet said:
    Still you didn’t respond to the surplus turning to deficit under W.

    LOL

    The $230 billion surplus CLAIMED by Clinton?

    Child, that was one month’s deficit spending under Barry!

    WASHINGTON, March 10, 2010 – The government ran up the largest monthly deficit in history in February, keeping the flood of red ink on track to top last year’s record for the full year.

    The Treasury Department said Wednesday that the February deficit totaled $220.9 billion, 14 percent higher than the previous record set in February of last year.”

    LOL

    Hahahahahahahahaah

  • http://twitter.com/pewestlake Paul Westlake

    GlennBeckReview said:
    Paul Westlake says:
    “Poor David Stockman, destined to go down in conservative annals as a traitor to the legacy of Ronald Reagan and a textbook example of a RINO. On the bright side, he HAS come to his senses.”

    Paul, Stockman hasn’t changed at all. It’s many others on the right who have gone over the cliff to the right. I never did think that supply-side economics made sense; indeed it lead to the U.S. resembling a banana republic with the few holding the lion’s share of the wealth while the rest of us struggle to make ends meet.

    Good points, GBR. Most conservatives forget that Reagan raised taxes again when it became clear that nobody was going to reduce spending any time soon. What they also forget is that Reagan slashed social programs and STILL exploded the debt, because he increased spending on the military by MORE than he decreased spending on domestic priorities. Stockman was just doing the math most of the time, and it often pointed in the wrong direction. I guess my point was more about the perception among reactionaries today – one of our own has betrayed us. You’re right that he changed much less than the landscape around him, but the separation was my point. If you knew about him before, not surprised. If you didn’t AND you’re a reactionary… watch out! ;-)

  • http://twitter.com/pewestlake Paul Westlake

    Pablo said:
    BlackWidow said:
    Pablo do you have a link for that statistic?

    Sure.

    The National Review? Really? HAHAHAHAHAHAHA

  • skyfet

    @notsofast
    Still avoiding to answer how ‘W’ turned a surplus into a massive deficit.

  • http://twitter.com/pewestlake Paul Westlake

    notsofast said:
    Hey, asshole, Barry got in in Jan 2009- break that down and live with it, you lying jerk.

    NSF = The Cowardly Lyin’

  • notsofast

    Bill Adkins said:
    Under BHO but because of the Republians. YOU ARE A DUMBASS, nutsofast,

    You stupid cretin, the Dims have controlled Congress since 2007!!!!!!!!!!!!!!!!!!!!!

    Man you are soooooooooooooooooo stupid like skyshit!

    skyfet said:
    @notsofast
    Still avoiding to answer how ‘W’ turned a surplus into a massive deficit.

    You fuckwad!

    I answered your stupid question, retard!!!!!!!!!!!!!!!!

    LOL

    The $230 billion surplus CLAIMED by Clinton?

    Child, that was one month’s deficit spending under Barry!

    WASHINGTON, March 10, 2010 – The government ran up the largest monthly deficit in history in February, keeping the flood of red ink on track to top last year’s record for the full year.

    The Treasury Department said Wednesday that the February deficit totaled $220.9 billion, 14 percent higher than the previous record set in February of last year.”

    LOL

    Hahahahahahahahaah

  • notsofast

    Paul Westlake said:
    NSF = The Cowardly Lyin’

    Another cretin lib weighs in.

    Hey Paul, isd your employer still taking out taxes for unemployment???

    LOL

    You, Bill Adkins and Skyshit do the work of 3 men- 3 men- The 3 fking stooges, you libtards!

  • skyfet

    @notsofast
    I asked you how Bush turned a surplus into a deficit and you are telling me about BO. What happened to the 8yrs under bush, you’d have us forget about that. Unlike you I don’t have selective amnesia.

    Get it! what’s with the intensity anyway, take it easy don’t burst something important. lol

  • http://twitter.com/pewestlake Paul Westlake

    notsofast said:
    Hey Paul, isd your employer still taking out taxes for unemployment???

    Still living off the high of being right once in your life, I see. That must be HIGH high, frizzy!

    Oh, and when it comes to taking on people in numbers, I’ve wiped the floor with six of you reactionaries at once. Nice try, psychopath. Why don’t you go back to pulling the wings off flies… you something you’re good at.

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