The Worst President Ever

Commentary By Ron Beasley

Who is the worst president ever?  According to Robert Parry it's not George W. Bush but Ronald Reagan.

But there's a growing realization that the starting point for many of the catastrophes confronting the United States today can be traced to Reagan's presidency. There's also a grudging reassessment that the "failed" presidents of the 1970s - Richard Nixon, Gerald Ford and Jimmy Carter - may deserve more credit for trying to grapple with the problems that now beset the country.

Nixon, Ford and Carter all recognized the challenges of America's oil dependence, degradation of the environment, nuclear proliferation and the arms race.  And they all tried to address the problem.  And then along came Reagan:

By 1980, Reagan had become a pied piper luring the American people away from the tough choices that Nixon, Ford and Carter had defined.

With his superficially sunny disposition - and a ruthless political strategy of exploiting white-male resentments - Reagan convinced millions of Americans that the threats they faced were: African-American welfare queens, Central American leftists, a rapidly expanding Evil Empire based in Moscow, and the do-good federal government.

In his First Inaugural Address in 1981, Reagan declared that "government is not the solution to our problem; government is the problem."

When it came to cutting back on America's energy use, Reagan's message could be boiled down to the old reggae lyric, "Don't worry, be happy." Rather than pressing Detroit to build smaller, fuel-efficient cars, Reagan made clear that the auto industry could manufacture gas-guzzlers without much nagging from Washington.

The same with the environment. Reagan intentionally staffed the Environmental Protection Agency and the Interior Department with officials who were hostile toward regulation aimed at protecting the environment. George W. Bush didn't invent Republican hostility toward scientific warnings of environmental calamities; he was just picking up where Reagan left off.

Reagan pushed for deregulation of industries, including banking; he slashed income taxes for the wealthiest Americans in an experiment known as "supply side" economics, which held falsely that cutting rates for the rich would increase revenues and eliminate the federal deficit.

Over the years, "supply side" would evolve into a secular religion for many on the Right, but Reagan's budget director David Stockman once blurted out the truth, that it would lead to red ink "as far as the eye could see."

But when it comes to the current economic meltdown Robert Scheer says not so fast - Reagan Didn't Do It.

It is disingenuous to ignore the fact that the derivatives scams at the heart of the economic meltdown didn't exist in President Reagan's time. The huge expansion in collateralized mortgage and other debt, the bubble that burst, was the direct result of enabling deregulatory legislation pushed through during the Clinton years.

Ronald Reagan's signing off on legislation easing mortgage requirements back in 1982 pales in comparison to the damage wrought fifteen years later by a cabal of powerful Democrats and Republicans who enabled the wave of newfangled financial gimmicks that resulted in the economic collapse. Reagan didn't do it, but Clinton-era Treasury Secretaries Robert Rubin and Lawrence Summers, now a top economic adviser in the Obama White House, did. They, along with then-Fed Chairman Alan Greenspan and Republican congressional leaders James Leach and Phil Gramm, blocked any effective regulation of the over-the-counter derivatives that turned into the toxic assets now being paid for with tax dollars.

Reagan signed legislation making it easier for people to obtain mortgages with lower down payments, but as long as the banks that made those loans expected to have to carry them for thirty years they did the due diligence needed to qualify creditworthy applicants. The problem occurred only when that mortgage debt could be aggregated and sold as securities to others in an unregulated market.

Greenspan, Leach and Gramm are no longer in government but Summers and Rubin are.  They played a part in making the mess and now they are charged with cleaning it up.  That's a good idea when your child makes a mess but in this case Summers and Rubin are just trying to sweep it under the carpet and not make any changes.