“That Voodoo That You Do”: Reporting Reaganomics, 1980

Ronald Reagan had made significant tax relief a signature issue during the 1980 campaign. But the scope of what Reagan sought unsettled most economists as well as some rivals for the presidency. Simply put, “Reaganomics” violated traditional fiscal orthodoxy. Major tax cuts, combined with boosts in military spending, which Reagan also favored, would cause substantial budget deficits.  Reagan’s plan, George Bush complained, constituted “voodoo economics.” Still, Reagan easily won the election. And, after months of intense negotiation, Congress in August 1981 passed the Economic Recovery Tax Act, which provided for $749 billion in tax cuts over the next five years. 

            Although Reagan’s fiscal policies did not prove quite the economic disaster some detractors had anticipated, they were largely responsible for ten years of budget deficits. They also inhibited domestic spending initiatives while contributing to greater income inequality.

            How much of this was foreseen during the campaign?  That is, to what extent did the American news media report on what Reagan proposed?  Straight-forward accounts of Reagan’s proposed tax cuts can be found. Tougher to locate are detailed analyses of possible consequences.

This caution has several explanations. Among them perhaps was the failure of the Carter campaign to emphasize the probable effects of Reaganomics. Then, too, Reagan’s fall television advertising heavily emphasized the candidate’s record as governor, in effect, reassuring voters that he was no ideologue. Journalists themselves may well have been reluctant to go beyond objective formula. Some may have under-estimated Reagan and his ideological resolve. Journalists based in Washington especially assumed Reagan would, if elected, favor more centrist policies. And many doubted, after a succession of failed presidencies, the capacity of any chief executive to achieve real change. 

            This paper is based on an examination of 1980 press coverage as well as materials at the Carter and Reagan presidential libraries.