The real effect of 'Reaganomics'

Ronald Reagan promoted the idea that conservatives prefer to leave the economy to the market. Nonsense – we've been gulled

Dean Baker
Monday 7 February 2011 18.30 GMT

At the 100th anniversary of Ronald Reagan's birth, his most important legacy has gone largely overlooked. Reagan helped to put a caricature of politics at the centre of the national debate and it remains there to this day. In Reagan's caricature, the central divide between progressives and conservatives is that progressives trust the government to make key decisions on production and distribution, while conservatives trust the market.

This framing of the debate is advantageous for the right, since people, especially in the United States, tend to be suspicious of an overly powerful government. They also like the idea of leaving important decisions to the seemingly natural workings of the market. It is therefore understandable that the right likes to frame its agenda this way. But since the right has no greater commitment to the market than the left, it is incredible that progressives are so foolish as to accept this framing.