In 1981, US President Ronald Reagan came to office famouslydeclaring that, “Government is not the solution to our problem. Government isthe problem.” Thirty-two years and four presidents later, Barack Obama’s recentinaugural address, with itsringing endorsement of a larger role for government in addressing America’s –and the world’s – most urgent challenges, looks like it may bring down the curtainon that era.
Reagan’s statement in 1981 was extraordinary. It signaledthat America’s new president was less interested in using government to solvesociety’s problems than he was in cutting taxes, mainly for the benefit of thewealthy. More important, his presidency began a “revolution” from the politicalright – against the poor, the environment, and science and technology – thatlasted for three decades, its tenets upheld,more or less, by all who followed him: George H. W. Bush, Bill Clinton, GeorgeW. Bush, and, in some respects, by Obama in his first term.
The “Reagan Revolution” had four main components: tax cuts for the rich; spendingcuts on education, infrastructure, energy, climate change, and job training;massive growth in the defense budget; and economicderegulation, including privatization of core government functions, likeoperating military bases and prisons. Billed as a “free-market” revolution,because it promised to reduce the role of government, in practice it was thebeginning of an assault on the middle class andthe poor by wealthy special interests.
These special interests included WallStreet, Big Oil, the big health insurers, and arms manufacturers. Theydemanded tax cuts, and got them; they demanded a rollbackof environmental protection, and got it; they demanded, and received, the rightto attack unions; and they demanded lucrative government contracts, even for paramilitary operations, and got those, too.
For more than three decades, no one really challenged theconsequences of turning political power over to the highest bidders. In the meantime, America went from being amiddle-class society to one increasingly divided between rich and poor. CEOswho were once paid around 30 times what their average workers earned now makearound 230 times that amount. Once a world leader in the fight againstenvironmental degradation, America was the last major economy to acknowledgethe reality of climate change. Financial deregulation enriched Wall Street, butended up creating a global economic crisisthrough fraud, excessive risk-taking, incompetence, and insider dealing.
Maybe, just maybe, Obama’s recent address marks not only the end of this destructive agenda, butalso the start of a new era. Indeed, he devoted almost the entire speech to thepositive role of government in providing education, fighting climate change,rebuilding infrastructure, taking care of the poor and disabled, and generallyinvesting in the future. It was the first inaugural address of its kind sinceReagan turned America away from government in 1981.
If Obama’s speech turns out to markthe start of a new era of progressive politics in America, it would fita pattern explored by one of America’s great historians, Arthur Schlesinger,Jr., who documented roughly 30-year intervals between periods of what he called“private interest” and “public purpose.”
In the late 1800’s, America had its Gilded Age, with thecreation of large new industries by the era’s “robber barons” accompanied bymassive inequality and corruption. The subsequent Progressive Era was followedby a temporary return to plutocracy in the1920’s.
Then came the Great Depression, Franklin Roosevelt’s NewDeal, and another 30 years of progressive politics, from the 1930’s to the1960’s. The 1970’s were a transition period to the Age of Reagan – 30 years ofconservative politics led by powerful corporate interests.
It is certainly time for a rebirth of public purpose andgovernment leadership in the US to fight climate change, help the poor, promotesustainable technologies, and modernize America’s infrastructure. If Americarealizes these bold steps through purposeful public policies, as Obamaoutlined, the innovative science, new technology, and powerful demonstrationeffects that result will benefit countries around the world.
It is certainly too early to declare a new Progressive Erain America. Vested interests remain powerful, certainly in Congress – and evenwithin the White House. These wealthy groups and individuals gave billions ofdollars to the candidates in the recent election campaign, and they expecttheir contributions to yield benefits. Moreover, 30 years of tax cutting hasleft the US government without the financial resources needed to carry outeffective programs in key areas such as the transition to low-carbon energy.
Still, Obama has wisely thrown downthe gauntlet, calling for a new era ofgovernment activism. He is right to do so, because many of today’s crucialchallenges – saving the planet from our own excesses;ensuring that technological advances benefit all members of society; andbuilding the new infrastructure that we need nationally and globally for asustainable future – demand collective solutions.
Implementation of public policy is just as important togood governance as the vision that underlies it. So the next task is to designwise, innovative, and cost-effective programs to address these challenges.Unfortunately, when it comes to bold and innovative programs to meet criticalhuman needs, America is out of practice. It istime to begin anew, and Obama’s full-throateddefense of a progressive vision points the US in the right direction.