The NYT had a front page article discussing Senator John McCain's views on economic policy. At one point it notes his strong support for Reagan's economic policies. The article then points out two major downsides to the economic legacy of the Reagan years, the stagnation of middle class living standards and the large increase in the government's debt.
The article should have included in this list the large trade deficits of the Reagan years. The country went from a net international creditor in the Reagan years to a net international debtor, with the shift towards an international debtor position exceeding 17 percent of GDP in the Reagan years, the equivalent of almost $2.5 trillion dollars in today's economy, or $8,000 of additional foreign debt for every person in the country. This rise in foreign indebtedness will have more impact on future living standards than the government debt incurred in the Reagan era.
The article also refers to a list of ineffective programs cited by the Bush administration, which is described as comprising 10 percent of the budget. The 10 percent figure presumably refers to domestic discretionary spending, which is currently just over $570 billion, about 20 percent of the total budget.
I’m writing to you today with a sense of urgency that I haven’t felt since I began my journalism career. As executive editor of The American Prospect, I’ve witnessed firsthand how independent journalism serves as a crucial bulwark against the erosion of our democratic institutions. Today, that role is more vital than ever. Can you step up today and show your support?
The winds of authoritarianism are blowing stronger. We’re seeing alarming signs of a coordinated effort to silence critical voices and undermine the very foundations that support progressive causes. As Bob Kuttner presciently wrote in our August 2024 issue, a weaponized IRS could attack the very foundations of the progressive movement. We need readers to step up and help us dig in for the long haul.
We’re falling behind in our spring fundraising campaign, and with so much at stake we can’t afford to come up short. If you value fearless, independent journalism that holds the powerful accountable and defends democracy, now is the time to step up. The American Prospect depends on reader support to stay in the fight. Pitch in today and help us close the gap. Please consider making a donation today.
–David Dayen, Executive Editor
Copyright 2025 | The American Prospect, Inc. | All Rights Reserved