Principles That Worked
Today, (Yesterday) would have been Ronald Reagan’s 98th birthday. People may say that Reaganomics is no longer applicable to this day and age, but I would disagree. Principles never change, and they will always work.
The real meat from this article can be found in Ronald Reagan’s farewell address on January 11, 1989.
The way I see it, there were two great triumphs, two things that I’m proudest of. One is the economic recovery, in which the people of America created–and filled–19 million new jobs. The other is the recovery of our morale. America is respected again in the world and looked to for leadership. …
Common sense told us that when you put a big tax on something, the people will produce less of it. So, we cut the people’s tax rates, and the people produced more than ever before. The economy bloomed like a plant that had been cut back and could now grow quicker and stronger. Our economic program brought about the longest peacetime expansion in our history: real family income up, the poverty rate down, entrepreneurship booming, and an explosion in research and new technology. We’re exporting more than ever because American industry became more competitive and at the same time, we summoned the national will to knock down protectionist walls abroad instead of erecting them at home. …
Ours was the first revolution in the history of mankind that truly reversed the course of government, and with three little words: “We the people.” “We the people” tell the government what to do, it doesn’t tell us. “We the people” are the driver, the government is the car. And we decide where it should go, and by what route, and how fast. Almost all the world’s constitutions are documents in which governments tell the people what their privileges are. Our Constitution is a document in which “We the people” tell the government what it is allowed to do. “We the people” are free. This belief has been the underlying basis for everything I’ve tried to do these past eight years.
But back in the 1960s, when I began, it seemed to me that we’d begun reversing the order of things–that through more and more rules and regulations and confiscatory taxes, the government was taking more of our money, more of our options, and more of our freedom. I went into politics in part to put up my hand and say, “Stop.” I was a citizen politician, and it seemed the right thing for a citizen to do. I think we have stopped a lot of what needed stopping. And I hope we have once again reminded people that man is not free unless government is limited. There’s a clear cause and effect here that is as neat and predictable as a law of physics: As government expands, liberty contracts.
