Heritage Foundation’s disastrous policies

Ronald Reagan and The Heritage Foundation. It’s hard to tell the story of one without much of the other.

The Reagan administration’s Mandate for Leadership I & II deregulation polices led to the S&L Economic disaster during Reagan’s second term. The only solution was to move money to the “top.” The rich got richer, and that included some members of the Heritage Foundation. In 1982, President Reagan signed the Garn-St. Germain Depository Institutions Act, ushering in a new era for S&Ls by eliminating loan-to-value ratios and interest rate caps.

This deregulation opened the door for S&Ls to take on riskier investments, setting the stage for a catastrophic bubble. Many finance officers profited while customers lost their homes and their credit was in shambles.

It is reported that President Reagan added $1.4 trillion in deficits and almost doubled the debt during his two terms in office.

Then, George H.W. Bush embraced the Heritage Foundation’s Mandate for Leadership III and the S&L disaster’s fallout continued through this administration and into Clinton’s administration

After Clinton, we see George W. Bush and The Heritage Foundation’s Mandate for Leadership V and VI again push deregulation of financial institutions. The 2008 economic crisis during his administration can be traced to a decadeslong trend of financial deregulation.

If we follow Trump toward Leadership 2025, we can expect more disastrous policies.

Al Jaffe

Oak Brook