This is a study on the effect of Reagonomics. It is documented at the end of the eighties, when the deregulation boon made life for some outrageously profitable, and really screwed over Labor, small farmers, and those relying on welfare.
"History is the story of the victors." That's what you have to assume in every circumstance but oral. Reading Studs' oral history is a admittedly biased by its editor: I make no pretense of "objectivity"; there ain't no such animal, though we play at the hunt,he says. But nevertheless, even with his editing, you are getting firsthand account--winner, loser; it's all democratic when everyone's words appear the same on paper.
What is so amazing about his documentation is how many people voted for Reagan. Everyone did, voted for Reagan: The simple candidate. The successful guy.
I voted for him because he was popular and the country needed an uplift.
As much as i can't stand Reagan as a person, I voted for him. The liberal approach didn't work: Model Cities, the Johnson poverty program, down the drain. I came to feel in voting for Reagan--as much as he is a jerk--we needed that direction toward the economy.
I think Ronald Reagan is a straw man. He's not real. He's an image. I voted for him, but I'm not really pro-Reagan. I didn't really make up my mind until i walked in the booth. I had worked with Jesse Jackson early in his career. I still have admiration for him. But i couldn't bring myself to pull the lever for him. I felt the country was in better shape in '84 than it was in '80. And maybe a simplistic guy like Reagan is what was needed at this particular time.
What's interesting is the level of enthusiasm for Reagan. This description was from a Chicago Republican congressman:
Philip Crane:I really got turned on by THE speech of that '64 campaign delivered by Ronald Reagan. It was that half-hour television speech in support of Goldwater. I was a surrogate speaker for him in Illinois. Whenever our dobbers got low, we'd just replay the Reagan speech and we'd get charged up again.
Studs: What did he say?
Crane: It was a general speech. It was supportive of the principles. Let's face it, Reagan at his best is doggone good.
Studs: Can you remember what he said in THE speech?
Crane: He talked about patriotism, pride in ourselves as a country. There's no country that can compare with what we've done. You know, give us your poor and huddled masses and we'll turn them into independent, self-supporting people, who'll enjoy the material blessings that no society has ever seen before, 'cause we're the freest society on the face of the earth. (He pauses.) It wasn't just the speech so much. It charged our batteries.
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The image in this book is one of Reagan's abstraction, his campaign coming to fruition and benefiting Wall Street, bankers, and the like. Whereas the problems with zero regulation, detraction of welfare and a strengthening of the judiciary created a web of problems for most common people, and led to features of upset like the arms race and the stock market crash in October of 1987.
You have scenes of great upsurge in capitalistic integrity. There is an ethical platform that is introduced. It is well noted in this turn towards Adam Smith-type economics:
One day i was browsing in a bookstore and saw the jacket of Adam Smith's Wealth of Nations. I saw this quote, I'll paraphrase: When you seek to help the poor or bring about the common good, you usually don't achieve it; but when you seek your own self-interest, as if by an invisible hand, the common good is served. People benefit indirectly through your pursuit of legitimate self-interest. Boy, it just struck me as so true to my experience. So i got out of planning and just one day walked into a real estate office and said, Hey, can I sell real estate? I'm gonna forget all about this other stuff. It just doesn't make sense. Maybe i can buy a building, fix it up, make a living, and see if somehow my idealism can live through this.
The idea of self-interest, to grow. It is a compelling argument for the sake of encouraging economic activity. But what does it leave in its tow?
As for the country, I honestly believe we are observing a decline of the republic. There's a major shift in American values, between the haves and have-nots, the rich and the poor. We now speak of an underclass. We are screwing the poor people. The family is disintegrating. The divorce rate has tripled. The drug culture among the young is growing. Television is fucking up the country completely, making us more violent and more druggy. The Sistine Chapel ceiling of American creativity is the thirty-second television commercial. That's where America's genius is concentrated. What are they telling us to do? Consume, look after number one, pamper yourself. Your wife isn't pneumatic enough, get yourself a pneumatic wife, trade her in.
So we have a bursting of Business:
A dentist explains the expanding of his industry: Basically, we're talking about the future of dentistry. The profession is just sitting there, waiting for somebody else to dictate what's gonna happen to it. I'm out there hustling. I'm looking for business... And when it comes to Reagan, Some of the things that sounded terrific are not turning out that way. However, he did cut down on regulations: laws restricting advertising and so on. I feel he did the right thing. The marketplace should determine what's happening.
Advertising indeed is a big part of deregulation, it represents the swell of certain commodities that socially protective politicians in the past would have restricted, regulated. Here an advertising mogul, the creative director for Gerald Ford:
You have the knee-driven underclass, which we continue to market sugar and salt and alcohol and nicotine to. We make a good amount of money off of them. You'll find black America still drinkin', still smokin' a lot of cigarettes, still spending a high percentage of their cash on this. You can understand this in terms of what their options are. Much more concerned with short-term gratification, for reasons that sre sad but obvious. Marketing things like potato chips, salty snacks, may seem innocent. If you're black, chances are you will retain a greater percentage of salt and be more prone to high blood pressure. Take a look at the mortality rates in black America, you'll find one of the side effects of the consumption patterns. They are fueled by the Michael Jackson type of marketing, which contributes to--I don't think you live as long.
It is not represented as evil, but free rein of capitalism is representing a sort of money-lovin' apathy:
There is no evil cabal of capitalists with dollar signs on their bulging vests making these decisions. There's a bunch of hardworking number-crunchers who look at the numbers on the rules that have been set-up, and they're making decisions. If you see seven boats sailing in the same direction, it ain't because it's a conspiracy, it's because that's the way the wind's blowing.
Another trend that bothers me is that somebody makes a living in advertising as soon as something becomes bad for you. It turns into big business. There's an ad in Advertising Age that just came out today: "Liquor use drops. Liquor consumption fell five percent in 1986. It was the greatest annual decrease in more than thirty years." Now that's good news.
It's good new for the health of America. It's also good news for advertising. Advertising budgets will probably go up by 10 percent. They're going up because these people in the marketplace fight harder and harder to get their share of the shrinking market pie.
A friend of mine is working on a very big piece of business now: the Beef Council. Ten years ago, beef was not a $20 million-a-year advertising account. people are trying to get America to eat more beef because America's concerned with cholesterol. Suddenly they say, We've got all these cows sittin' around, we gotta market them. For every cow slaughtered, you put a little money in the pot for the Beef Council.
Guess how much is spent selling cheese in America? Twenty-two million dollars. All the nice little dairy farmers from my home state Wisconsin are trying to get you to eat more cheese because you're not eating enough 'cause it's got cholesterol. So we're gonna spend 22 million.
Farms
Which brings us to the disenfranchised. Farmers. Farmers are the real tragic heroes of this collection--completely screwed by the institution that swore them gracious victory:
During the Carter administration we were told: We're going to feed the world. We're going to have this huge agricultural market. Land values shot up. the lenders, especially the FHA, were going to farmers, offering them money, wining and dining them like they were big businessmen. I have one client who went to FHA for a $50,000 loan. They said, We'll give you $150,000 if you'll build a new dairy barn.
What happens? Land values shoot down, there is no equity and farm prices are lower now than they were during the Depression. A farmer says to me, "I took a load of corn in the other day and I got 98 cents a bushel. I can't buy one box of corn flakes for what i get for a bushel of corn." In one week, three farmers called. They took their corn to the elevator and were told they have to pay six cents a bushel. It was worth negative six cents.
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They come at us with, You gotta have a cash flow, you gotta do a better job on your bookkeeping, a better job on your farming. But still when you sell that bushel of corn for less money than you produce it, you can only cut so far. Our taxes kept going up, interests kept going up on us. At one time, I was paying eighteen percent interest on my farm notes. I came up more short on payments. If i don't make a go of it now, the Newton National Bank will take it. They'll turn around and sell it to someone else. It will probably be a corporation. We call 'em vultures.
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Just because, forty years ago, half the population lived on the farm, and people thought, Wasn't that a great life? Today nobody lives on a the farm. The American government ruined the American farmer. Three embargoes: '73, '76 and '80. There probably aren't as many Third World countries that have defaulted as much as we have. An embargo's defaulting tells you that your contract's no good, rip it up. That's why we have to spend 35 billlion a year to support the farmers. Australia, Canada, Argentina, Brazil expanded. We made them all rich.
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Last Friday, the bank foreclosed another neighbor. They hauled off his equipment. his son went to where they stored it and drove the tractor home. he needed it to farm. They now have him on a felony. he can get up to twenty years. For stealing his own tractor.
In 1982, when the bank foreclosed on me, I was able to hide some cattle. I saved nine heifers.
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American land is falling into fewer and fewer and fewer hands: people who are in it purely for profit. They don't care about conserving it. They don't care about the pigs. A farm woman put it to me: Who is going to stay up with the corporate sow? On a family farm, the parents and children are out in the hog barn all night long during farrowing. Or during the calving and lambing season. The whole family. They're not going to let anything happen to those animals. What's going to happen when you have corporate farming?
Labor
Another portion of this book is dedicated to the labor struggles of the eighties. A number of factories closing down because their work is being outsourced. The TWA airtraffic controllers strike as well as the flight attendants strike--people on both sides: flight attendants saying they are being exploited. Pilots saying they signed a contract, they have a job to do...It's an attack on the living standards of workers, since Reagan. And the best way is to hit the unions.
Labor is losing the battle, lawyers judging the "knocks and downslides" as healthy responsibility: Concessions were needed in order to make the company more viable, says a pilot about the TWA strike. His wife is a flight attendant, on strike. She does not agree: those young flight attendants (scabs) are finding out it's not what they thought it was. After a time, all these people will need unions, just like the people who worked in factories for many long hours. The unions are taking hard knocks now, but the pendulum will swing back the other way, hopefully.
A labor lawyer, Tom Costello, talks about how after Vietnam many union elections were being stolen, Maybe we relied on a Labor Department to enforce the laws and, of course, it didn't. Maybe we didn't realize that you can't beat machines the first time out. We became dispirited.
The flooding of Labor with bureaucracy was debilitating its ability to be a democratic institution:
It was a time when the unions were very militant. Certainly at the bargaining table. There were some terrific unions where the unrest was expressed by the leadership. A militancy that now appears gone. Maybe what happened in the sixties, with the antiwar and civil rights movements, not enough attention was paid to labor. It's curious. In the thirties, when the nation's industry was in a shambles, the labor movement came alive. The unions were powerful because a labor bureaucracy had not yet been established. Unions are powerful only to the extent they are not bureaucratic. That's what the fight for union democracy is about. The more people feel they have something at stake, the more they attend union meetings, the stronger the union is. The more the political controversy, the more the members are interested. The more bureaucratic the union, the more the membership is kept at a distance, the weaker it is.
Fiscal Conservatism became the law of the land:
Now they're tellin' you you're not a good citizen if you're not willing to accept less. The whole country's supposed to accept less. It's steadily comin' down.
Action
I think Studs' resolution revolves around a bunch of little actions he details in this book: A pastor in Pittsburgh after it had been completely devalued as industry created actions against Mellon bank, getting laid-off workers to go into the bank and hold off tellers, dropping ten dollars worth of pennies on the ground, then having to clean them up. They got a lot of heat for putting fish in safe deposit boxes.
Studs also spends a lot of time talking about Jean Gump, the grandmother who broke into and then protested missile silos in the Midwest. His interviews with her show she has a lot of gumption, even in prison. Her story is pretty amazing.
I liked this story about Maria Elena Rodriguez-Montes, who tried to block Waste Management from building a toxic waste landfill next to her neighborhood. She went to the IEPA, About thirty of us went ot the governor's office downtown. How can we get these guys to respond? Our strategy was: We'll take our kids down, with taffy apples. The kids were grabbing things, getting all the furniture sticky. The secretaries and staff were getting real upset--(laughs)--how else would we get their attention, unless we disrupted formal office procedure?
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I remember feeling angry. Did he really think he was fooling us? I called out, "Mayor, will you please come back here? We're not done with you yet, buddy." (Laughs.) I said, "You spoke a long time, but you haven't answered any of my questions. I'm going through them, one by one, and I want an answer to each one." You don't normally speak to a mayor like that, but I wanted somebody to be accountable. Why not the mayor?
"Will you look at that zoning permit, and if possible revoke it. Yes or no?" He'd look at me: "Yes, Mrs. Montes." (Laughs). "Will you, as soon as you get back to City Hall, look at those contracts?" We went through them all. "Final question--let me make this clear--will you keep this compnay out of our neighborhood? Yes or no?" He said yes.
I remember i grabbed him, hugged him, and kisssed him on the cheek. The whole crowd was standing and applauding. It was the best thing that ever happened to us. It was great. We got a real commitment that day. They mayor did put a moratorium in effect.
And this woman, Anndrena Belcher, who tries to design programs in Appalachia which steer it away from the coal monopoly :
I felt very bitter about the coal industry. I don't think the jobs are worth the price people have to pay for their health, for the way the land has been ravaged. I don't like driving down the road and having coal trucks drive over in the middle and me feel like a powerless little thing over on my side. My daddy says he expected me to get shot for saying something against strip mining. It's a hard place to live.
And her resolution:
My daddy used to say this sytem has to burn itself out before people will say the earth is important. I have to have some clean food and some clean air. I have to have some silence. I have to be able to get out and go to the lake or see the stars or hear the wind blow.
Mountain people have always been pretty patriotic. That's because they felt like they really owned the place and cared for it, and wanted to fight for that reason. But now we have this new patriotism. It's a different definition than the one i would have.
There's a hunger for stories. There's a hunger for people to be real. We voted for Reagan because we're movie-star-struck. The reason we're image-struck is because we don't like who we are. We don't like saying we're okay as regular people.