How the GOP Used a Two Santa Clauses Tactic to Con America for Nearly 40 Years


This scam has been killing wages and enriching billionaires for decades.

"The only thing wrong with the U.S. economy is the failure of the Republican Party to play Santa Claus."

-Jude Wanniski, March 6, 1976

The Republican Party has been running a long con on America since Reagan's inauguration, and somehow our nation's media has missed it - even though it was announced in The Wall Street Journal in the 1970s and the GOP has clung tenaciously to it ever since.

In fact, Republican strategist Jude Wanniski's 1974 "Two Santa Clauses Theory" has been the main reason why the GOP has succeeded in producing our last two Republican presidents, Bush and Trump (despite losing the popular vote both times). It's also why Reagan's economy seemed to be "good."

Here's how it works, laid it out in simple summary:

First, when Republicans control the federal government, and particularly the White House, spend money like a drunken sailor and run up the US debt as far and as fast as possible. This produces three results - it stimulates the economy thus making people think that the GOP can produce a good economy, it raises the debt dramatically, and it makes people think that Republicans are the "tax-cut Santa Claus."

Second, when a Democrat is in the White House, scream about the national debt as loudly and frantically as possible, freaking out about how "our children will have to pay for it!" and "we have to cut spending to solve the crisis!" This will force the Democrats in power to cut their own social safety net programs, thus shooting their welfare-of-the-American-people Santa Claus.

Think back to Ronald Reagan, who more than tripled the US debt from a mere $800 billion to $2.6 trillion in his 8 years. That spending produced a massive stimulus to the economy, and the biggest non-wartime increase in the debt in history. Nary a peep from Republicans about that 218% increase in our debt; they were just fine with it.

And then along came Bill Clinton.

Read more here.

Comments

Legend 26 weeks 4 days ago
#1

History keeps repeating itself and the Republicans (that should be Democrats) keep falling for it and voting for it. How many times does it take. Huge tax cuts for the wealthy + massive increases in Defense Spending = Recession.

Hephaestus's picture
Hephaestus 26 weeks 4 days ago
#2

Banksters surely have a role in this seeming never ending cycle

2950-10K's picture
2950-10K 26 weeks 4 days ago
#3

We need to find out who, how, why, and where the military industrial spy complex is laundering all of those missing billions. We know Cheney got massively rich off all the for profit global death and destruction.

If you think our system is less corrupt than Putin's Russia, better guess again.

Reliable word is out that Pompeo won't do a god damn thing to stop the Russian interference in the midterms....that from Rex Tillerson. T-Rex's words.."we can't do much about it" Why would they do anything about it? Putin supports their fascist cause which will lead to our economic collapse.

DrRichard 26 weeks 3 days ago
#4

Well of course, give people what they want and, as my father (1900-90) said, they will vote their pocketbooks. Unfortunately the link between reckless spending for pointless wars, cutting useful spending by government, and boiling the economy into steam is missed by most people. Which, since Congress collects the campaign contributions from contractors (hired to fight the enemies created by pointless wars) is exactly how they want it. The fact that this is totally unsustainable, and a growing war department has less and less of value to defend at home is, to their way of thinking, nobody's problem.

jefflisse's picture
jefflisse 26 weeks 3 days ago
#5

Sooo...
Let me get this straight...
This " two Santa Clauses" tactic is based on insane supply side, Laissez Faire economic philosophies.
You know.. The economic philosophy that won Milton Friedman a Nobel prize?!?
"Chuckling"
And.. Alan Greenspan the Medal of Freedom?!?
"Chuckling"
And l thought us Jews didn't believe in Santa Clause?
Let alone...two of them!!

What this Jew wants to know is...

In the science of economics:
Why in the world, did the world, listen to the crazy economic ramblings of a couple of...absolutely insane Jews??
Wasn't there any economic- Jewish "voice of reason" 40 years ago??
Where the fuck was Paul Krugman back then?!?
"Not chuckling"

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