2012 Endorsements: JFK and Ronald Reagan

Posted by PITHOCRATES - October 31st, 2012

2012 Election

JFK did all the Democrat things to Stimulate the Economy out of Recession but none of it Worked

John Fitzgerald Kennedy (JFK) was a Cold War warrior.  Not to mention a World War II combat veteran.  He warned Nikita Khrushchev that any Soviet interference with U.S. access to West Berlin (located behind the Iron Curtain in East Germany) would be an act of war.  Which meant a nuclear war with the USSR.  The Soviets responded by building the Berlin Wall between East and West Berlin.  Blocking free passage between East and West.  JFK authorized the Bay of Pigs Invasion to topple the Soviet-backed Castro government in Cuba.  The invasion failed for the lack of air support.  Castro feared another US invasion.  Shortly thereafter the Soviets installed intermediate-range ballistic missiles in Cuba.  To counter US missiles placed in Turkey.  Once discovered JFK ordered a quarantine of Cuba.  A US naval blockade.  Leading to the Cuban Missile Crisis.  And the closest the US and the USSR ever came to all out nuclear war.  Khrushchev and JFK finally resolved the crisis.  Khrushchev agreed to remove their missiles with a public US guarantee that they would never invade Cuba.  And a private promise to remove those US missiles from Turkey.

JFK sent the Special Forces to South Vietnam to stem the spread of communism in Southeast Asia.  He also initiated the coup that toppled the government of Ngo Dinh Diem (though he did not call for his assassination).  Leading to America’s long involvement in the Vietnam War.  And Kennedy’s Secretary of Defense helped make all of this military action possible.  Robert McNamara.  One of the ‘Whiz Kids’ who helped to rebuild the Ford Motor Company.  And he ran the Department of Defense like he ran Ford.  By the numbers.  He made it more efficient.  Saving a lot of money from the existing budget.  While JFK added an additional $8 billion (about $58 billion in 2011 dollars) of defense spending.  Paying for a lot of the weapons a Cold War warrior needed.  However, he was still concerned about the size of the deficit.  So JFK also included some domestic spending cuts to help offset the increases in defense spending.  But it wasn’t enough.  He had a deficit.  Worse, he had a recession.

JFK did all the Democrat things to stimulate the economy out of recession.  Typical Keynesian economics stuff.  Government spending.  And keeping interest rates artificially low.  But it wasn’t working.  One of the problems was that Keynesian stimulus just doesn’t work.  But another problem was the baby boom following the war.  Who grew up and were looking for jobs in the Sixties.  That just weren’t there.  He needed some really solid economic growth to create those jobs.  And for that he turned to supply-side economics.  What we would later call Reaganomics.  He created a more business-friendly environment.  He offered businesses tax credits for investments in new machinery and equipment.  He accelerated depreciation schedules, allowing businesses to expense their assets more quickly.  Which encouraged investment into new assets.  And he proposed tax cuts on both business AND personal income.  It worked.  Unleashing an economic boom that lasted until 1966.

When Reagan entered Office he did what JFK did and created a Business-Friendly Environment

Ronald Reagan was a Cold War warrior.  While President Carter pursued a policy of detente with the Soviet Union Reagan’s policy was more in keeping with JFK’s policy.  He called the Soviet Union the Evil Empire and pursued a goal of destroying it.  And like Kennedy he built up a strong military.  Reagan invaded Grenada when hard-line communists overthrew a moderate socialist government.  While there were Cuban construction workers and military personnel building a 10,000 foot reinforced runway.  Which would be handy for the Soviets to use in their Central American activities.  Which Reagan also opposed in Nicaragua.  As he helped the Mujahideen resist the Soviets in Afghanistan.  Reagan revived the Carter-canceled B-1 Lancer bomber program.  He introduced the MX intercontinental ballistic missile program.  And when the Soviets deployed SS-20 intermediate-range ballistic missiles Reagan deployed Pershing medium-range ballistic missiles in West Germany.  Then he took it up a notch and introduced a strategic ballistic missiles defense system.  The Strategic Defense Initiative (SDI).  When Reagan gave a speech at the Berlin Wall’s Brandenburg Gate with Mikhail Gorbachev in attendance he said, “General Secretary Gorbachev, if you seek peace, if you seek prosperity for the Soviet Union and Eastern Europe, if you seek liberalization, come here to this gate! Mr. Gorbachev, open this gate! Mr. Gorbachev, tear down this wall!”

The Soviets couldn’t keep up with the spending as their command economy was a mess.  It was a different story in America.  In fact, it was Morning in America.  Not only did the Americans spend the Soviets to the brink of collapse they did that in what those on the Left call the Decade of Greed.  Because economic times were so good there was excessive materialistic consumption.  So while the Soviets stood in line for soap and toilet paper the Americans enjoyed Sony Walkmans, CD players, VCRs, new cars, big houses and all the delicious food you could eat.  Americans had a weight problem.  While the Soviets had a malnutrition problem.  The Soviet Union would collapse about 3 years after Reagan left office.  George H. W. Bush, Reagan’s vice president, having the honor to be in office at the end of the Soviet Union.

Like JFK Reagan also had a recession.  As he entered office following the disaster of the Carter presidency.  Carter did all of the Keynesian stuff like JFK.  Using inflation to try to end unemployment.  Which only gave the nation high inflation and high unemployment.  Stagflation.  And malaise.  But unlike JFK Carter refused to try something different when it didn’t work.  When Reagan entered office, though, he did what JFK did.  He created a business-friendly environment.  That included tax cuts.  Tax cuts that stimulated economic activity.  So much economic activity that federal tax receipts went up even though tax rates went down.  So Reagan’s deficits weren’t a revenue problem.  They were a spending problem.  Much like they are today.  Much like they always are.

If JFK and Ronald Reagan were Alive Today they would likely Endorse the Republican Candidates Mitt Romney and Paul Ryan

The attacks on 9/11 didn’t just happen.  It was the last in a chain of events.  There was the 1993 World Trade Center Bombing.  The New York City Landmark Bomb Plot (1993).  The Khobar Towers Bombing (1996).  The United States Embassy Bombings (1998).  The Millennium Attack Plots (2000).  The USS Cole Bombing (2000).  Then 9/11.  Until 9/11 we treated all of these events as criminal offences.  Not acts of war.  While Osama bin Laden and his al Qaeda acted from the start as if they were fighting a war.  Not breaking the law.  President Obama is also reluctant to call these radical Islamist attacks war.  When a radical Muslim in the US Army killed fellow soldiers on an Army base because of America’s ‘crimes against Islam’ the president called that workplace violence.  And when an American ambassador asked for additional security in Benghazi someone in the Obama administration denied the request because President Obama had killed Osama bin Laden.  And defeated al Qaeda.  Having to beef up security to defend against a growing al Qaeda presence, though, would have gone against that narrative of defeating al Qaeda.

The current so-called economic recovery is about the weakest on record.  Despite doing the normal Keynesian things to revive the economy.  Including an almost trillion dollar stimulus package.  Leading to record deficits.  Money the government had to borrow.  Borrowing which required an increase in the official debt ceiling.  This excessive debt and government spending cause the first downgrade of US sovereign debt.  All of this to fix the economy.  Only the economy is not fixed.  And the people who can’t find a full time job holds steady at 14.7% (U-6 unemployment rate).

So if JFK and Ronald Reagan were alive today who would they support in the 2012 election?  Who would a couple of Cold War warriors who risked nuclear war to protect the United States support?  These practitioners of supply-side economics who brought their economies out of recession to record economic growth?  Probably not the candidates foolishly hanging on to failed Keynesian policies despite a real unemployment rate of 14.7%.  Or the ones refusing to accept that we are still being targeted and killed by al Qaeda and other radical Islamist elements in the ongoing War on Terror.  No.  If JFK and Ronald Reagan were alive today they would likely endorse the Republican candidates Mitt Romney and Paul Ryan.

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