Reagan's Failed Sell of Government as Too Big
In 1973 Ronald Reagan got really got serious for the first time about running for President. His vehicle, Team Reagan decided, would be a ballot initiative designed to show the world that the people of California agreed with their governor: government wasn't the solution to our problems. Government was the problem. Then, once the ballot initiative passed, he would barnstorm the country selling the idea to other states, and be hailed as a hero.
The idea was born because that year, some bad accounting and an improving economy had left the state of California with a nearly $1 billion fiscal surplus. Reagan's announced intention was to "return the money to taxpayers," writing into the California constitution a cap on both taxes and government spending.
The architects included an economist named Milton Friedman and his gubernatorial chief of staff Edwin Meese—appropriate names, because in every respect "Propostion 1" was a perfect template for a generation of conservative movement appeals to follow that—well, let's quote Ronald Reagan himself:
"Are we automatically destined to tax and spend, spend and tax indefinitely, until the people have nothing left of their earnings for themselves? Have we abandoned or forgotten the interests and well-being of the taxpayer whose toil makes government possible in the first place? Or is he to become a pawn in a deadly game of government monopoly whose only purpose is to serve the confiscatory appetites of runaway government spending?"
Ronald Reagan put everything he had into selling Proposition 1. It was a brilliant, deeply Reaganite political performance. The leader of the anti-Proposition 1 forces, Democratic Assembly Speaker Robert Moretti, said he was in favor of lowering taxes too, just like he was "in favor of motherhood" and "against sin." He just thought turning the state Constitution into an iron corset was madness. He, too, marshaled an array of statistics to demonstrate why Proposition 1 could not do what it was intended to do, and challenged the governor to debate. Reagan refused him. Moretti explained why he thought Reagan was ducking him: because in any tax limitation program that included, as Reagan's did, an expenditure ceiling, programs would have to be cut, and "He knows he cannot answer the questions we raise as to which programs will be cut." So he challenged the governor again and again and again and again—and five times Reagan refused him.
Reagan was playing an entirely different game.
When he made statistical claims, he blithely let them contradict each another. For instance, they said his plan would create deficits. He responded it would produce $41.5 billion in 15 years in new money. But then he also stated as the plan's fundamental intention giving the state less money to spend. His critics would scratch their heads—and unveil another brace of statistics. Then he would respond with moralistic perorations, making them look like pedantic asses—which was the game he was playing: "When the advocates of bigger and bigger government manage to get their hands on an extra tax dollar or two," he would quip, "they hang on like a gila monster until they find some way to spend it."
Again, his opponents opponents threw up their hands. If Reagan wanted to cut taxes and spending, what of his last seven years as governor? California's secretary of state, who was also the son of the governor Reagan replaced in 1966 and who himself hoped to succeed him in 1974, pointed out that he'd increased both dramatically. And already had a line-item veto, which he had never effectively used. "How can a magic formula, written by invisible lawyers," Jerry Brown asked, "do what Ronald Reagan has been unwilling or unable to do?" The same services Reagan had been refusing to cut in the last seven years as governor, critics would logically observe, would suffer. Reagan would indicate the emergency fund would protect them. But then he would say he didn't even want to protect government bureaucrats anyway.
But if government employees were all money-sucking monsters, why was the state budget in surplus in the first place?


