U Magazine, Winter 1986

Joe assumed his professorial tone again while I wondered whether my ear was still connected to my head. He continued, "The huge federal deficit means the government will be aggressive in the financial markets competing with the private sector for available funds. This kept interest rates high even through the 1982 Reagan recession ." "Wait a minute," I interrupted. "The president said he inherited these problems from his predecessor." "All presidents say that," he replied. "What he ought to think about is the monstrous legacy he will be leaving his successor." "High real interest rates will attract capital from the moon," he continued, " and as currency flows into this country it strengthens the dollar and worsens the trade deficit. This administration clings tenaciously to the classical concept of free trade while the rest of the world exploits our market and practices protectionism. The only thing that we manage to export in sizable numbers is manufacturing jobs." "Classical economists say . .." but again I was interrupted. "Those people don't know anything!" Joe said quite emphatically. "They live in another century. What we should do is revoke their tenure and import a half million economists from Asia to take their places. We could save a lot of money and get better advice in the process. Perhaps that might alter some of their views on free trade. Our problem is that we have a president who persists in listening to them because he is from the same century as they are." I countered, "Look Joe, you must admit that Reagan has substantially lowered the inflation rate." " Yes," he promptly responded, "with a giant assist from OPEC, the American farmer and organized labor that is so weak each year it is negotiating for less. Yes, I said less. Let's keep the record

straight as to who is paying the price for a lower rate of inflation. It wasn't the result of any magical monetary policy suggested by the Reagan administration." His voice was angry again , and I detected some froth at the corners of his mouth. My ear was still sore but I decided to risk it. "Ronald Reagan was re-elected by a substantial majority of the American people. He is a nice man , with , I might add, a beautiful head of hair." "That's because he apparently doesn't worry about anything," Joe replied. "I thought it was only natural for parents to want something better for their children. Look at what this nice guy is leaving our children. Doesn't he love his grandchildren? Nice guy ... I just wish that nice guy were my barber, not my president.'' I decided not to respond. It was certainly clear that Joe was not too optimistic about the future course of the economy under Reaganomics. As I climbed out of the chair, I decided to cut his normal tip in half because my ear was still smarting. His demeanor seemed even more ominous as I pressed the quarter into his fist. As I exited the shop, a cold chill rolled up my spine as Joe's next customer slid into his chair and said, "Just a quick shave, Joe.' ' Dr. Robert O'Neil is associate dean of the School of Business Administration and an associate professor of economics. He earned his Ph.D. at Fordham University.

"I thought it was only natural for parents to want something better for their children."

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