By Dean Baker
Editor’s note: This is adapted from Dean Baker’s new book, The United States Since 1980 (The World Since 1980).
“U.S. politics took a sharp turn to the right in 1980 with the election of Ronald Reagan as president. Domestically, Reagan touted an agenda that would lead to a sharp upward redistribution of income. Internationally, Reagan explicitly rejected the “détente” framework for engaging the Soviet Union that had been accepted by the leadership of both major parties since the beginning of the Cold War. In its place, Reagan put forward a doctrine of U.S. unilateralism in which the United States basically claimed the right to do whatever it wanted, unconstrained by allies or international institutions.
The welfare state in the United States was always weaker than in West Europe, but in 1980 it was reasonable to believe that West Europe presented a model that the United States would follow. Medicare and Medicaid were still relatively new programs, having been established just 14 years earlier. Having recently seen a massive expansion of publicly provided healthcare coverage, many people believed that it would not be long before healthcare coverage was extended to the entire population. Other features of European welfare states, such as long vacations, short work weeks, and paid parental leave (generally maternity leave at the time), also seemed feasible political goals.
Reagan’s election changed the political reality. His agenda was rolling back the welfare state, and his budgets included a wide range of cuts for social programs. He was also very strategic about the process. One of his first targets was Legal Aid. This program, which provides legal services for low-income people, was staffed largely by progressive lawyers, many of whom used it as a base to win precedent-setting legal disputes against the government. Reagan drastically cut back the program’s funding. He also explicitly prohibited the agency from taking on class-action suits against the government — law suits that had been used with considerable success to expand the rights of low- and moderate-income families.
The Reagan administration also made weakening the power of unions a top priority. The people he appointed to the National Labor Relations Board were qualitatively more pro-management than appointees by prior Democratic or Republican presidents. This allowed companies to ignore workers’ rights with impunity. Reagan also made the firing of strikers an acceptable business practice when he fired striking air traffic controllers in 1981. Many large corporations quickly embraced the practice. Also, his high dollar policy in the mid-’80s was a severe blow to manufacturing unions, who suddenly had to compete against low-cost imports that were essentially subsidized by an overvalued dollar.”
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