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Happy Birthday, Ronald Reagan

Happy Birthday, Ronald Reagan

Posted on February 6, 2025 by Dan Mitchell

On this date in 1911, one of America’s greatest presidents was born.

I celebrated Ronald Reagan’s birthday with a video in 2011. Let’s do the same thing this year and listen to his wise words about government spending.

Reagan didn’t just have good rhetoric. I’ve written several times about how he did a very good job of restraining domestic spending.

As you can see from this chart, he was far better than any other president of the past 60 years.

Reagan definitely fulfilled my Golden Rule, with the burden of domestic spending growing much slower than the private economy.

As such, domestic spending was reduced during his presidency by a remarkable 2.5 percentage points of GDP.

Reagan was good on other issues as well. For a good summary of his achievements, Professor Henry Nau of George Washington University wrote about Reagan a couple of years ago for National Review.

Here are some excerpts from that article.

Reagan formulated a limited-government, supply-side version of economic policy that put economic decisions in the hands of millions of citizens rather than central-government bureaucrats and congressional special interests. …Their choices ignited three decades of market-led economic growth and equality at home and abroad. Until Reagan, tax increases and government spending — Keynesianism — were the only alternative. Today, conservatives offer a choice. …Reagan’s policies ended the Cold War and oversaw the unparalleled spread of democracy and peace. His foreign policy was conservative not liberal. It called for a world of strong nation-states not universal global institutions, independent national defenses not collective security, competitive markets not expert-driven globalization, defense of freedom where it exists not everywhere, more equal-burden sharing by allies not free-riding, and negotiations to encourage peaceful democratic reforms not morally equivalent coexistence. He called the Soviet Union an “evil empire”… Reagan’s conservatism unites Republicans — the libertarian emphasis on individual choice and competition, the populist emphasis on faith and patriotism, and the traditionalist emphasis on knowledge and virtue. …America’s natural home is with other free countries. That’s the sense in which Reagan supported free trade.

No wonder Reaganomics was successful.

I’ll close with the observation that the Republican Party would do better by returning to Reaganism rather than the two other alternatives.

P.S. If you want to read about other presidents who were good on economic policy, check out Calvin Coolidge and Grover Cleveland.

———
Image credit: The U.S. National Archives | Public Domain.


fiscal policy government spending Reaganomics Ronald Reagan
February 6, 2025
Dan Mitchell

Dan Mitchell

Dan Mitchell is co-founder of the Center for Freedom and Prosperity and Chairman of the Board. He is an expert in international tax competition and supply-side tax policy.

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