Arguing that “ it’s hard not to see how the Democrats have come to play the same role in the contemporary political order that Republicans once played under the New Deal,” Corey Robin’s latest piece takes a look at how supply-side economics upended American politics:
Growing up in the 1970s, I had an almost primal association to the GOP as the party of the thrifty and the flinty. Republicans were the grownups at the table, forever cautioning the children against taking that extra piece of cake. Averse to spending money the country didn’t have, they were as leery of deficits as they were of rhetoric. Plainspoken, economizing men of austerity: that was the GOP.
There was some truth to this picture, extending back several decades. Herbert Hoover helped send the Republican Party into twenty years of exile via his ill-timed effort to balance the budget with a hefty tax increase in 1932. One of the first things Eisenhower did upon coming into office was to insist on balancing the budget. Thanks to the Korean War, tax rates were high, and many Republicans wanted Eisenhower to reduce them. He refused, saying “we cannot afford to reduce taxes, reduce income, until we have in sight a program of expenditures that shows that the factors of income and of outgo will be balanced. Now that is just to my mind sheer necessity.” Upon taking office, both Nixon and Ford pursued similar paths, and resisted similar tax-cutting calls from their party.
But by the time I was in middle school, that picture of the Republican Party had become a faded sepia print. During the 1970s, a new breed of conservative had emerged, calling into question the wisdom of balanced budgets. Men like Jude Wanniski, Milton Friedman, and Alan Greenspan took the lead in challenging the frugal dispensation on the right, claiming that Republicans had become what Newt Gingrich would later call “tax collectors for the welfare state.”
Interestingly, the most salient arguments of these new conservatives were less economic than political, focusing on the enabling dynamic of shitfaced Democrats being shepherded to safety by their designated drivers in the Republican Party, only to resume their drunken revels the following evening.
If Obama wins in November, there’s going to be a big push for a “grand bargain” to head-off the sequester cuts mandated by the Super Committee’s failure. As Digby has noted (and been writing about for years) any denizen of the political left opposed to diluting New Deal and Great Society programs in the name of balanced budgets should be very, very anxious.
{ 0 comments }




ust 

