59. Ronald Reagan Part 2: Reaganomics

We met the carefully curated Ronald Reagan in part 1. We saw the Hollywood grin, the borrowed cowboy myth, the astrologer in the basement, the informant and the corporate lackey. In Part 2, we follow the money. The sale of a new economic dream for Americans during a time of desperate stagflation, unemployment and uncertainty. And what it sold has cost this country more than any single presidency in modern American history.

Reaganomics was pitched to Americans as common sense. The government takes too much, thats the problem. Taxes on "job creators" choke the economy, corporations are going to run if you tax them you know. Cut taxes, slash regulation, trust the market — and a tide of prosperity will lift every boat. Cut off the welfare queen and free the small business owner. Trust the rich. Trust the men in suits who already had everything to know what was best for the woman scrubbing the floor at the hospital. He sold it the way only Reagan could, with a tear in his eye, a flag behind him, and a story about a Cadillac driving welfare cheat in Chicago who statistically did not exist.

In this episode, we trace what actually happened next.

The top income tax rate fell from 70 percent to 28 percent. The estate tax was gutted and capital gains were slashed. Corporate rates collapsed. All the ways the wealthiest among us make wealth were unleashed while the rest of us stayed tethered, shouldering more than our share of the burden. Union membership crashed from one in four American workers to roughly one in ten. Wages stopped tracking productivity. The federal minimum wage was frozen in time. Wall Street was deregulated, manufacturing was offshored, and the bottom half of the country watched its share of national wealth fall from 4 percent to barely 2.5, while the top 1 percent's share doubled. All while the national debt tripled. The mental health system was hollowed out, causing homelessness to explode. And every Republican economic platform since has been some version of do that again. Even Democratic leaders have allied themselves with this ideology in some way.

We also dismantle the lie at the heart of it all, that spending on people is waste. Because every credible economist who has actually run the numbers has found the opposite. Every dollar invested in SNAP generates up to $1.80 in economic activity. Every dollar spent on early childhood education returns $7 to $12. Public transit returns roughly $4 to $1. WIC saves $3 in future Medicaid costs for every dollar it spends. Universal preschool, paid family leave, Medicaid expansion, infrastructure, these aren't handouts. They are the highest-return investments any government can make. The math has been clear for forty years. We were just told not to look.

Reaganomics were one expensive lie for the American people. In this episode we talk about why we bought it, who profited, who's still paying — and what this country would actually look like if we ran the numbers instead of the mythology.