The First Steps in Getting it all Back

An engaged electorate is a beautiful thing to behold. For a generation or two, hard working, industrious, and long-suffering Americans had neglected politics. After 1925, Evangelical Christians did not connect their religious beliefs with the social sphere. They did not have a biblical worldview of culture and politics. I don’t mean they didn’t vote. I suspect that they believed that if they did the right thing—even vote for a political party that had done some good for their parents and grandparents in the past—that the rest of the electorate and the people they put in office would reciprocate. They didn’t. Politicians abused the system, denied their constitutional oath, and millions of Americans saw an opportunity to take advantage of the potential for redistributed bounty. In time, even the “greatest generation” gave in to the promise of security over freedom. It didn’t happen overnight.

It started with free public (government) education and moved to accept the Sixteenth Amendment because it would mostly affect the “rich.” In 1913, the income tax did not impact the average American wage earner. The first bracket was one percent on incomes up to $20,000 per year (see chart). There was a standard deduction of $3000 to $4000. With the average income being less than $1000 per year, the people who did not oppose the income tax amendment initially were not impacted by it. The richest Americans, those making more than $4000 paid most of the tax, with those making more than $500,000 paying seven percent. Like today, the tax burden was on the “rich” (see original IRS form).

It was easy to move from using the State to confiscate money from their neighbors so their children could be educated for “free” and taxing the rich generally to pay for other services to instituting a compulsory insurance program financed partly—actually, half—by employers. If you work for someone, the State forces your employer to pay what you pay in Social Security and Medicare. Few people complain. It’s free money, but at your employer’s expense. And yet today, those who protest government intrusion in their lives are willing to live with just enough theft so they’ll be secure. We’ve seen this before, the German people valued “security over political freedom” that “caused them to see in the State, however conservative, a benefactor and a protector.”[1] “We’re from the government, and we’re here to help you.”

Ronald Reagan is said to be the model for how a conservative president should govern. In reality, Reagan oversaw the expansion of the State at the federal level. Gary North throws up some history that Reaganites don’t want to acknowledge:

There is no question that Ronald Reagan destroyed Republican resistance to the expansion of the Federal deficit. He oversaw the complete destruction of effective resistance to the Federal debt. As it turned out, Bill Clinton was more successful in balancing the budget than Reagan,[2] Bush I, and especially Bush II. If deficit spending is the great evil today, and if political resistance to deficit spending by the Tea Party movement is the heart, mind, and soul of the political transformation of America, then the great enemy of the Tea Party movement ought to be Ronald Reagan. Yet Republicans and conservatives during the Reagan administration applauded his administration, and almost nobody systematically called attention to the fact that his deficits were undermining the future of the country. . . .

He made no attempt to stop the expansion of Federal spending. If Federal spending is the great problem today, then Ronald Reagan is the grandfather of it in the era after Franklin Roosevelt. Roosevelt at least had a justification: World War II. Reagan had no similar justification. He just oversaw the destruction of the principle of the balanced budget.

All of this should be obvious. All of this has been in front of us for almost 30 years, yet the conservative movement still venerates Reagan. Reagan did do a good job in cutting top marginal tax rates. I have to give him credit for that. He also bankrupted the Soviet Union. But his unwillingness to veto Congressional spending measures has led to the disaster that we are facing today.

This information is available for all to see, but most conservatives don’t want to believe it. They don’t want to believe their conservative hero had feet of fiscal clay. Most Americans didn’t mind since they had already been conditioned to believe that a certain amount of socialism is OK. It’s the other guy’s socialism that we don’t like.

We’ll see if Chris Christie, the newly elected Republican governor of New Jersey, can fight the temptation to offer the people of his state false security instead of true liberty. Christie understands that ultimately the people are the ones who make policy, if you can get enough of them on your side: “The most important thing in public life, in a job like governor, is for the people you’re representing to know exactly where you stand. People who disagree with me on things at least have a sense of comfort in knowing where I’m coming from.” He’s only half right. If a majority doesn’t want the cuts and reduction in services, there is little that a government official can do. Greek officials saw riots in the streets with a few dead bodies thrown in as a warning to government officials. It hasn’t come to that in America, but most Americans aren’t desperate yet. Millions of people are still getting their government checks.

There is no easy way out of the fix we’re in. But there is a way to get started. First, get out of debt: “The rich rules over the poor, and the borrower becomes the lender’s slave” (Prov. 22:7; cf. Deut. 28:12–13; Rom. 13:8). Second, take responsibility for your own life. Pay for your children’s education. Don’t ask me or your neighbors to pay for it. This is the first test to see if you value liberty over security. There are residual benefits. Your children won’t be turned into State-loving Socialists, and we may be able to shut down the government school system and the oppressive bureaucracy that goes with it. Third, practice living on less so that it becomes a habit. Fourth, get a worldview adjustment. Watch a film like The Pianist (2002, also see here) to get some idea how bad things can get. Fifth, don’t ever say, “It can’t happen here.”

Endnotes:
  1. William L. Shirer, The Rise and Fall of the Third Reich (New York: Simon and Schuster, 1960), 96, note. []
  2. This is because Republicans acted like the Conservatives they claimed to be when they had an antagonist in the White House. []

Article by Gary DeMar

Gary is a graduate of Western Michigan University (1973) and earned his M.Div. at Reformed Theological Seminary in 1979. Author of countless essays, news articles, and more than 27 book titles, he also hosts The Gary DeMar Show, and History Unwrapped—both broadcasted and podcasted. Gary has lived in the Atlanta area since 1979 with his wife, Carol. They have two married sons and are enjoying being grandparents to their grandsons, Calvin and Paul. Gary and Carol are members of Midway Presbyterian Church (PCA).
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12 Comments

  1. Mr. DeMar,

    Thank you again for another insightful article.

    I don't know if this was intentional but you dealt with the second and tenth planks of the Communist Manifesto (graduated income tax and "free" education. Would there be any plans to address the remaining 8 planks?

    This is exactly why we have homeschooled our children for the last 18 years.

    BTW, thanks again for the God and Government series, I just recently read it for a 2nd time in its entirety.

    P.S. I agree completely with fairtaxdan. Passing H.R. 25 would roll back a great deal of that second plank in the Communist Manifesto
    My recent post NAACP considers resolution decrying racist elements in tea-party movement

  2. kaiser11a says:

    Mr Demar,

    I was going to castigate you for your ignorance of history but "backtotheplate" (earlier) brought the points home amply. Please do not think yourself capable of authoring articles when your product is so devoid of ANY understanding of actual history or the roles of the President and congress in the budget process. You make questionable the veracity of your other opinion pieces. Please check your 'facts' more carefully, otherwise you place yourself in the ranks of most every liberal writer out there who vomits half-truths and mis-information to 'make their point' knowing no liberal is smart enough to fact check or question. You do not have that luxury.

  3. msbetz says:

    I agree with most of this article HOWEVER, the first (#1) is to DEMAND for Barack Abdallah Husein Obama to reveal who he is,
    American Citizens and the American Military have a RIGHT to lawful command, WHO is leading, by WHAT AUTHORITY? And where is he taking our Country? By what AUTHORITY?
    Until his records are unsealed, we don't know who he is and the CONSTITUTION stands in the balance on the most important (#1 issue) The Constitution becomes NULL and VOID unless HE proves that he is indeed eligible under THE AMERICAN CONSTITUTION to command and lead the most powerful country in the world.

    The Rule of Law vs The Rule of Procedure
    What if he's not? Why did Nancy Pelosi remove the (eligible under the US constitution) clause form the documents meant to verify that he was eligible? What if he's not? What if he's not? WHat if he's NOT?

  4. Ronald Reagan was not perfect, by any means. Amnesty — which he later admitted was the worst mistake of his presidency (libertarians practically to a man, by the way, LOVE it) — and saving Social Security (my vote for his worst mistake) are among his negative legacies.

    BUT:
    1) You can't laud Reagan for having "bankrupted the Soviet Union" without acknowledging that this achievement was the direct result of an enormous — and enormously expensive — military buildup. It was something Reagan knew would cause deficits, everything else being equal (viz., Democrats controlling Congress!), but he felt it was morally and strategically worth the momentary debt. And doggone it, it WAS!

    2) To laud Bill Clinton for fiscal conservatism while condemning Ronald Reagan for profligacy is to worship results and ignore intent — no matter what. Clinton advocated far more spending than was done in his Administration; he vetoed spending bills from a Republican Congress that were attempting to CUT spending. Reagan sent balanced budgets to Congress — 5 percent reductions to each of the baselines in his first two budgets — even amidst his military buildup, that the Dem House Speaker Tip O'Neill branded "dead on arrival." The Dems added enormous amounts to budget bills and Reagan fought them — vetoing 22 spending bills in his first three years alone.

    3) Clinton's balance budget resulted in large part FROM the policies Ronald Reagan — both in the peace dividend, which allowed tremendous reductions in military expenditures after Reagan's toppling of the Soviet Union, and the swing back in the economy due to renewed effect of Reagan's pro-growth tax cuts, after the mild Bush recession (the comeback was already well in place before Clinton took office).

    4) Clinton also benefited on paper from a dot.com bubble. By the late '90s, the stock market was booming, revenues were pouring into the Federal Treasury, but companies were losing money on each added person hired. It was an expansion based on capital gains — dumb investment — and it was headed for disaster! (During the Bush II expansion of 2003-2007, businesses MADE money on each employee added.)

    5) Clinton had a Republican Congress that forced spending cuts down his throat. Without Newt Gingrich and the boys, there would not have been Welfare Reform, which within two years lowered federal spending more than $100 billion annually. Had Reagan had such a Congress, he would have run budget surpluses throughout the '80s.

    6) Clinton even benefited from the Savings & Loan bailout a few years to the tune of some $30 billion. The payouts were all done during Bush I — increasing his deficits. The paybacks all came in for Clinton!

    Yes, one can pull statistics here and there for every argument. But knocking a true fiscal conservative who had to endure a profligate Congress (they make the budgets, after all) while achieving a noble victory for mankind, while complimenting an amoral, instinctively big-spending creep (who would have blithely let the Soviet Union live on forever and extend its dominance over all of Europe and the Middle East) — a man who lucked into a frugal Congress, a tech bubble and a free market lifted by the President of Ronald Reagan . . . is ridiculous.

    It takes our minds off the real enemy — seeks to even COMPLIMENT them for their undeserved good fortune — while knocking those who largely think as we do and fought under adverse circumstances to make things better. Makes no sense to spend time on that.

  5. 4gsltw says:

    Gary, you seem to forget why Reagan did this. He knew the federal government would suffer fiscally in the short run due to his tax cuts, but he also knew it was THE way to rescue our economy. He was so right, and this is his legacy. In addition, his impeccable moral conservatism was even more important to the health of our country and freedom in general. Today, so-called "fiscal conservatives" place little value in the much more important moral conservatism. This may well spell the downfall of our country regardless of whether "fiscal" conservatives win back Congress and the Presidency.

  6. Thanks for the “first steps”article. Unfortunately, Gary’s prescription will not cure what ails America. Gary is seeing the tree within a forest, but is far from laying the axe to the root. Government control of education is the tree producing the rotten fruit we are all repulsed by, but the spiritual root feeding the tree is not so easily exposed.

    The Protestant Reformation was a return to Augustinian Theology (historic Calvinism) and a rejection of the Roman Churches Semi-Pelagian Theology (Arminianism). Even secular historians (like Bancroft) recognize America as being founded by John Calvin. Central and South America were mostly colonized by Spain with their “papal” semi-pelagian theology. Because ideas have consequences and belief precedes action, South America is statist and “third world” today. Semi-pelagian theology always produces statism because it enthrones man, to some degree, over our Sovereign Creator.

    “No King but King Jesus”, was the battle cry in 1776; by which time two thirds of America’s population had been schooled “in Geneva”. America was not founded by “Christians”, but by Protestant Reformation Christians educated in and practicing the systematic theology of Calvin.

    America is embracing Socialism because ninety five percent of the churches are teaching semi-pelagian theology. Yes; sin is the problem, but semi-pelagianism is humanism, encouraging mans “cooperation” with God’s “plan”.

    If government control of education were to end tomorrow, and American families inculcated semi-pelagian theology to their children, we would be back in this socialist mess within one or two generations. I am completely committed to returning education to the family, yet I harbor no delusion that semi-pelagian theology will not produce our desired result, without a second Protestant Reformation and a return to Augustinian Theology, one family at a time.

    American society is melting down because of its theological rejection of orthodox historic Protestantism, not some generic “Christianity”.

    God Bless;

    James Atherton

  7. fairtaxdan says:

    Gary,
    There is a Bill in the congress that will IMMEDIATELY reverse this "Train wreck" we are in. It will return the most power back to the people from the government since the Declaration of Independence.
    Our country will once again have Full Employment, it will help to end Class Warfare, it will help put an end to politicians buying votes and the corrupt practice of corporations and lobbyists "Buying" legislation. It will help mitigate the tremendous expense of illegal immigration (not to mention provide incentive for illegals to become legal), it will remove government intrusion into many levels of our lives and make the label "Made-in-USA" once again the standard of the world.

    Don't believe it – read about it for yourself. http://www.fairtax.org – The Bill is HR 25 and it has been held up in congress since for quite some time. You see, politicians from BOTH parties do not want this to happen because they are among the few groups that stand to loose if it should be passed.

  8. Keith Carlson says:

    You are right that Reagan's amnesty action was bad. You can't reward people for violating the law…especially when they get medical care and social security and other benefits. Yes, he did do deficit spending, but the military spending and the "star wars" project/bluf is what caused the Soviet Regime to give up. Reagan wasn't perfect, nor are these cowarding Republicans today….they should pound the table constantly and tell the public that the Dems are the party of the IRS. You like taxes and a socialist state which has NEVER worked…vote Democratic. Also no fuss about Kagan…..the media says its all theatrics. Just like Robert Bork? The Republicans need to get some guts and tell it like it is, or disband the party and get rid of the baggage that is Republican..

  9. Dianne says:

    YOU ARE SO RIGHT! FINALLY someone has openly proclaimed these things! Anybody know why NO ONE alludes to Reagan's colossal Amnesty action? One would think that at least the Dems would point to it on occasion.

    IN-SANE SOCIETY.

    • ben gilpin says:

      The first step to getting it back; is to change our ways. If each and every one of us would start living like Jesus Christ told us to live, and we will be utterly surprised at how God will bless this nation. Study your Bible and see how God blessed the nation of Israel every time they repented and lived their lives like HE told them to live!!!!!
      That is the only way this nation will be changed; is by becoming arighteous nation.
      Read this!!! (John 6:53) He spoke in a northern dialect of the Aramaic language as did all the people of Galilee; but what He said in English is,"You must appropriate My ways to have any life in you (At All)!!!!
      That maeans if you want any life in you (AT ALL) then start appropriating the ways of Jesus Christ!!!!
      When we do, this nation will tryly become a nation to behold!!!

    • Bryan Anderson says:

      Reagan was not the one that started the debt accumulation. Carter was. Reagan tried to erase a lot of Carter's work, including the .Department of Education, but he could not. It is easier to create government than to destroy it.

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