The Nobel laureate economist Paul Krugman once again shone the light on the second worst president of the 20th century, the anti-Rushmore, Ronald Reagan. Hard to believe but American mythmakers have presed long and hard to have the neocon Reagan chiselled onto Rushmore.
Krugman simply pointed out inan NY Times column on June 1 that Reagan must share the goat horns with Ayn Rand acolytes Alan Greenspan and Milton Friedman.
In 1982 the Gipper who knew as much economics as he did theology signed into law the Garn-St. Germain Depository Institutions Act. “All in all, I think we hit the jackpot.” he exulted. The bill was desigbed to stabilize thrift institutions—which were clobbered in the regime of Bush One.It was called the Savings and Loans scandal.
“On the contrary, the bill turned the modest-sized troubles of savings-and-loan institutions into an utter catastrophe. But he was right about the legislation’s significance. And as for that jackpot – well, it finally came more than 25 years later, in the form of the worst economic crisis since the Great Depression.”
Private debt exploded umder deregulation. As we now know the US true believers caused a world wide recession. And as Krugman sardonically observes: “it is the gift which keeps on taking.”
Time to end the myth of the Gipper.