Political Cortex: Brain Food for the Body Politic

Greed is good became an unofficial slogan when former sports broadcaster and actor, then California's ex-governor, Ronald Reagan, became president.  When Ronald Reagan cut taxes on the wealthy, another slogan became popular, "It's morning in America!"  Greed to some became God!

Alfred L. Malabre Jr., former economic editor and columnist for the Wall Street Journal, in his 1987 book "Beyond Our Means" explains how America's long year of debt, deficits, and reckless borrowing threaten to overcome us.

Malabre revealed the following:

"In 1985, according to the Department of Education, over 13,000 students in families earning more than $100,000 yearly were receiving low interest government loans for college!"

Did they repay these loans?  Malabre explained, "Among 106 New York City area residents sued by the government in 1985 for defaulting on such loans after college, five were budding investment bankers, five were doctors, two were dentists, and others included college professors, accountants, computer programmers, and even three policemen."

The author told of another family with an income of $200,000 getting a low interest loan for their son at 7 percent, which he never needed, and put the money into a certificate of deposit at a bank to obtain a higher rate to make money on a program designed for the poor.

The Reagan administration by tripling the national debt while simultaneously neglecting the nation's infrastructure was hailed as Republican economic genius for getting the government off people's backs.  He cut many banking regulations, a real joy to con artists' hearts.

But what was happening to the infrastructure?  

The highways, the bridges, the sewer systems in New City, over 100 years old and greatly in need of repair, all were sorely and tragically neglected.

Malabre explained another neglect:

"The increasing use of so-called junk bonds in corporate takeover situations is perhaps the most flagrant illustration of the debt buildup within corporations."

Anti-trust laws FDR put in place were ignored.  Just because corporations merged, the stocks often went up, even if the corporation profits did not rise.  Even Alan Greenspan warned that investors should check out corporate profits as well as stock price advances.

Despite his pattern of unflagging economic destruction for America, Ronald Reagan became an icon to millions and remains the reigning hero of the Republican right.