The Biggest Political Con of the Last Century Unmasked

Why the destruction of public institutions, the middle class, and government itself may not be a mistake — but the mission…

Neal deGrasse Tyson makes a very relevant point this week:

“If a foreign adversary snuck into our Federal budget and cut science research and education the way we’re cutting it ourselves — strategically undermining America’s long-term health, wealth, and security — we would likely consider it an act of war.”

Trump’s administration just said you can’t get the Covid vaccine unless you’re over 65 or sick, setting up America for more death and disease. As Noah Berlatsky notes in his great Substack newsletter:

“This is the latest effort by Trump to try to kick start a major US pandemic and degrade the health and welfare of the country. Trump has also rolled back food testing, including testing for bacteria in infant formula. He’s made major cuts at the FAA, leading to fears for airline safety—and a number of dramatic airline safety failures already may be related to the destruction of capacity. Cuts at the NOAA may diminish the ability to warn about dangerous weather events. The Republican proposals for Medicaid cuts are likely to lead to tens of thousands of deaths. And of course Trump’s senseless tariffs are increasing inflation, destroying jobs, and could still easily end us in a recession.“

But why? What the hell is going on here?

Almost two-thirds of us Americans can’t afford the basic necessities of life, according to a new report from the Ludwig Institute for Shared Economic Prosperity (LISEP) reported by CBS News. They point out that if unemployment numbers included the underemployed and those stuck in “poverty-wage jobs,” it would be around 24%, not the 4.2% recently reported, leading to an acknowledgement of a widespread misery that’s largely hidden by the way we currently calculate unemployment.

Income for the bottom 60% of Americans, for example, actually declined by 4% in the years 2001 to 2023 while costs — particularly for healthcare, housing, food, and education (college tuition, for example, is up 122% since 2001) — have exploded.

Before the pandemic, half of all homes on the market were affordable to a family earning $75,000 a year; today it’s only one out of five houses that such a family could afford to purchase.

The initial result of this post-Reagan Revolution economy was to kneecap the middle class and working class; now Republicans are using the same strategy they employed to destroy our middle class to dismantle our nation’s government and its core functions to leave us vulnerable to the predation of foreign nations, vulture capitalists, and the morbidly rich.

And nobody’s sure why.

The history of how we got here is shocking. And the place it’s taking us — gutting government functions while handing our role in the world over to China and Russia — is downright scandalous.

At first, it was simply a political strategy to claim the mantle of Santa Claus from the Democrats by “gifting” America with tax breaks. Then it became a program to force Dems to kill off their own social programs by driving up the national debt. And now it’s being used to disassemble the American government itself, abandoning what’s left of the middle class while handing America’s dominant role in the world to China and Russia.

You could call it treason, except that it’s become so normalized and institutionalized that most Americans wouldn’t even understand the reason for the label.

Republican policy weirdness that brought us to this moment began around the national debt in 1981.

The United States was significantly in debt following our Revolutionary War, the Civil War, World War I, and World War II. Following the philosophy that a large national debt should only exist during a time of national emergency, in each case, after the end of each war, we began a serious effort to pay down that debt.

Andrew Jackson finished paying off the entire debt from the Revolutionary War in the 1830s. We’d largely paid off the debt from the Civil War by the end of the 19th century, and, as the Treasury Department notes on its debt history site, our “government ended the century with its finances in very good order.”

We paid the national debt for WWI down to a mere $17 billion by the time the Republican Great Depression hit, but between the cost of the New Deal and World War II, we entered the post-WWII era in 1946 with a debt equal to 106% of GDP, a ratio we hit again in 2015.

Republicans and Democrats quickly united around the idea of paying off our national debt in the post-war years, driving it down to a mere $800 billion ($0.8 trillion) between 1945 and 1981 when Reagan came into office.

And then, following Jude Wanniski’s “Two Santas” plan, the GOP embarked on an experiment that had never been intentionally tried in the US or any other developed country in world history: drive up the national debt as high as possible with massive tax breaks for the very richest among us.

Reagan did this for two reasons:

— First, deficit spending with trillions in borrowed money (he ran the debt up to $2.4 trillion in a mere 8 years) stimulates the economy, so people thought Reagan had produced good times. (Give me a $2 trillion credit card, and I’ll show you what it looks like to live large, too!)

— Second, the rising debt gave Republicans the perfect excuse to follow Wanniski’s advice to force the Democrats to “shoot their Santa [of programs like Social Security and Medicaid] in the face.” Whenever a Republican is in the White House, Wanniski argued, Republicans should run up the debt as hard and fast as possible, so when a Democrat is in the White House they can squeal about “the debt our children will inherit! Oh, the humanity!”

The GOP has stuck to this strategy for 44 years now, running up $36 trillion in debt (and our entire Gross Domestic Product was a mere $27.7 trillion last year) and now, finally, we’ve reached the point where this unsustainable debt is not only costing us a trillion dollars a year in debt service (interest payments) but has led to a downgrade of our nation’s credit score.

At first, the main effect of the Two Santas strategy was merely to make the morbidly rich among us fabulously richer, while extracting much of that wealth from the homes, retirement plans, and savings of the middle class. It was, quite simply, a planned and successful transfer of roughly $50 trillion into the money bins of the rich, almost all of it coming out of the hides and lives of the rest of us.

When Reagan came into office in 1981, about two-thirds of Americans were solidly middle class with a single paycheck being able to buy a home, a car, raise a family, put the kids through school, and provide for a decent retirement.

Today, that same standard of living requires a bit more than two full-time jobs, and only about 47% of us are in the middle class (with two wage earners instead of just one in 1981).

“‘The middle class has been declining — we just haven't recognized it fully,’ LISEP Chairman Gene Ludwig told CBS MoneyWatch. ‘It’s really dangerous because it’s the kind of thing that leads to social unrest, and it’s not fair. The American dream is not that it’s given to you — it’s that if you work hard, you have a chance to get ahead and achieve the things in life that you want to achieve. It’s not living in a tent, not having to steal.”

But now Trump, Musk, Vance, and congressional Republicans — having first crushed the American middle class — are doing everything they can to destroy America’s preeminent position in the world along with our social safety net.

— Instead of investing in education and science, they’re making it harder for students to get an education.
— Instead of promoting democracy around the world, they’re embracing murderous dictators while broadcasting rightwing neofascist propaganda on Voice of America.
— Instead of lifting up Americans by helping our veterans and providing food, healthcare, and shelter to the poor and disabled, they’re gutting the VA and the social safety net.

As a result, today nearly half of American children (45% or 34 million kids) rely on food and medical programs that are now targeted by “Christian” Mike Johnson’s House Republicans in their Big Brutal Bill providing trillions in tax breaks to billionaires. The proposed cuts to SNAP (food stamps) and Medicaid, for example, would be the largest in the history of the United States.

Reagan’s Two Santas strategy has done serious harm to America, collapsing the economic futures of two entire generations.

And now they’re going after our government itself.

But, why? Nobody’s sure.

— Did Putin, Xi, or both tell Trump and/or Musk to destroy America?
— Are our country’s billionaires so psychopathically greedy that they’re willing to sell us all out for another few billion dollars in tax breaks?
— Do Trump’s allies believe that if they can impoverish Americans we’ll be more willing to go along with their authoritarian agenda the way Germans did after being immiserated by the Republican Great Depression of the 1930s?
— Are they following the “Dark Enlightenment” philosophers of Silicon Valley who argue that democracy is outdated and “we need to get over our dictator phobia” and let the tech giants run the country?

Nobody knows for sure. Nobody can really explain it.

Republicans are aren’t even pretending anymore; they’re not even bothering to proclaim BS like “trickle down” or the “need to support the job creators.“

Most distressing, there’s virtually no discussion of any of this in the mainstream press.

— The Two Santas strategy is easily documented, but never mentioned.
— The explosion of our national debt is all over economists’ websites, but when the American media mentions it, it’s always in the context of Democrats needing to “reduce spending” rather than the fact that virtually 100% of our debt today was put there exclusively by Reagan, Bush, and Trump tax cuts and Bush’s two illegal wars.
— Nobody, it seems, is speculating about why Trump and Musk would want to kill off USAID or kneecap the FAA and the National Weather Service. Qui bono (who benefits?) other than Putin and Xi? The savings are a drop in the billionaire’s bucket; there must be a larger agenda than just funding tax cuts for billionaires.
— And, they’re now holding their votes in the middle of the night; I think we all know what they are hiding and the credulous press is letting pass.

I don’t know why Republicans have been so enthusiastic about first destroying the American middle class and now our government itself, but the consequences have driven the explosion of rightwing anger, racism, and misogyny that’s been sweeping the nation since Trump’s appearance on the scene in 2015.

And now they’re threatening our position in the world, as well as possibly leading us all into a third world war.

Why do you think this is happening?

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