Cumberland Times-News

Letters

March 10, 2010

Budgets, like baseball, need some regulations

To the Editor: Cumberland Times-News

With an insightful batter’s eye in “Let’s not forget who was responsible for starting this” (March 1 Times-News), Phillip Carder of Oldtown surely hit a bases’ clearing home run!

For the most definitive moment, when U.S. fiscal solvency and regulations of financial institutions began their free fall to the bottom, did occur in 1981 with the inauguration of Reagan as president.

One of the best kept secrets in U.S. history is that the Reagan administration holds the all-time modern day record for federal debt enhancement. In ‘81 when President Reagan took office U.S. debt was less than $1 trillion. By ‘89 at the conclusion of his second term this debt had mushroomed to nearly $4 trillion — a 300 percent increase!

By contrast Bush II, another so-called “conservative” Republican, was responsible for a mere doubling of the debt from about $6 to $12 trillion.

Both Reagan and Bush II were able to perform their feats of monetary irresponsibility by substantially reducing revenue through massive tax benefitting the wealthy and, frankly, spending like there was no tomorrow.

However it was President Reagan who was most egregious regarding budgetary matters. The Gipper’s “Economic Revitalization Act of 1981” transferred untold billions from the U.S. Treasury to the coffers of big business and wealthy individuals.

He would routinely veto spending bills stating they were too costly, then in a month or two sign the same bill with a much higher price tag. Reagan was reported to have commented, “Don’t pay attention to what I say. Watch what I do!”

Not only was Reagan the “Great Communicator”, imbued with a talent to get people to believe almost anything, he was also known as the “De-Regulator-in-Chief.” To govern means to regulate and Reagan’s calling card was to advocate for less government, fewer regulations. Perhaps his best known quote is, “Government is not the answer, it’s the problem!”

This line of thinking, possibly still held by most Americans, has haunted us to the present day. What if over the past 30 years there would have been strong, enforced rules to govern the financial mega-industry of banking, investment, insurance and real estate? Would there have been a global financial crisis? I think the answer is obvious.

Essentially regulations are critically vital for all aspects of life. If the economic game, as in baseball, is to be productive and successful, then there absolutely must be enforced rules.

How could baseball be played without rules, umpires, umpire supervisors and ultimately a commissioner with utilized authority?

Had President Reagan been able to make this connection then probably the current financial catastrophe could have been avoided.

There were indeed times in the past when Republican presidents recognized the necessity of both having a balanced budget and a strong federal government with enforced regulations.

Such was the case most notably with Republicans Abe Lincoln, Teddy Roosevelt and Ike Eisenhower. I wonder what their respective positions would be regarding today’s health care debate?

R. Steele Selby

Frostburg



 

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