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Online Right_in_Virginia

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Ronald Reagan: Trade Realist
« on: May 20, 2016, 02:43:10 am »
Ronald Reagan: Trade Realist
AmericanEconomicAlert, Alan Tonelson, Monday, June 07, 2004

Lost in the flood of Ronald Reagan retrospectives and testimonials is a crucial fact with special relevance for all Americans today: To a great extent, Ronald Reagan was a trade realist.

The conventional wisdom about Reagan as free enterprise, free market champion is largely true. But on trade policy, Reagan acted decisively in five instances to save major American industries from predatory foreign competition. Moreover, as I detailed in a 1994 article in Foreign Affairs, in each case, the temporary import relief succeeded spectacularly, resulting in improved performance by these industries and avoiding the captive market prices that conventional economics teaches will always flow from restricting foreign competition.

Reagan's best-known protective policy was a tariff placed in 1983 on imported motorcycles at the request of American icon Harley-Davidson. The tariffs were to last five years, but the company's comeback proceeded so quickly that it relinquished the final months of import relief. Moreover, the tariffs encouraged Japanese rivals like Honda and Kawasaki to build or expand factories in the United States and create still more jobs for American workers.

Yet in many ways, the Harley tariffs were the least important examples of Reagan's trade realism. Far more significant and beneficial for the U.S. economy were Reagan trade policies that helped revitalize the auto, machine tool, semiconductor, and steel industries.

Reagan's tactics were flexible. In autos, machine tools, and steel, his administration subjected foreign producers to so-called voluntary export restraints. In semiconductors, Reagan officials negotiated an agreement to secure a specific share of the Japanese market for U.S. companies, and then imposed tariffs on Japanese electronics imports when Tokyo briefly refused to keep a promise to halt semiconductor dumping.

Reagan's results, however, uniformly clashed with conventional economic theory, which holds that protected industries always become fat and lazy price gougers. All four of the industries protected saw their productivity rise vigorously. All four improved quality so dramatically that they won back market share at home and abroad. All four boosted capital and R & D spending. All four held the line and then some on prices. And all four excelled largely because the import relief enabled them to attract the investment needed to retool. After all, why would capital markets steer money towards industries that seemed doomed to succumb to foreign mercantilism?

In addition, like the Harley-Davidson tariffs, the steel and auto trade restrictions drew Japanese, German, and Korean investment into the United States. Not only were jobs created; in the case of steel, cutting-edge technology was transferred to joint ventures with American partners set up in the United States.

Reagan was a trade realist in another vital sense -- understanding the need for carefully regulating trade with current and prospective adversaries. Indeed, soon after his inauguration, Reagan became convinced that the Soviet Union had run into a series of potentially crippling economic problems, and he implemented a policy of strategic denial that undoubtedly played a role in hastening communism's demise.

Reagan also recognized that, although preserving a system of multilateral controls is essential, U.S. leadership is also essential to keep those controls strong. Accepting the lowest common denominator -- especially from shortsighted allied governments out to make a quick buck -- just wasn't an acceptable option to him.

Reagan's trade policies were far from perfect. For example, he never systematically confronted Japanese, Korean, or European protectionism, apparently convinced that U.S. allies would in some way defect from the free world if he pressed them too hard on economics. He permitted the U.S. dollar to remain far too strong for far too long, and consequently did much needless damage to the U.S. industrial base by the time he approved a major devaluation in late 1985.

Nonetheless, when major American industries were on the ropes, a combination of national security fears, electoral concerns, and outrage at inequitable, illegal competition prompted Reagan to act, and American manufacturing was unquestionably the stronger for it. Tragically, this is a crucial aspect of his legacy that all three of Reagan's White House successors have rejected, frittering away American manufacturing and jobs in one ill-advised free trade agreement after another.

http://americaneconomicalert.org/view_art.asp?Prod_ID=1134 




« Last Edit: May 20, 2016, 02:49:16 am by Right_in_Virginia »

Online Right_in_Virginia

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Re: Ronald Reagan: Trade Realist
« Reply #1 on: May 20, 2016, 02:45:40 am »
Ronald Reagan, credited Conservative, was a populist.  Everything he did with trade was designed and negotiated to put American First--her interests, her industries, her jobs and her citizens.

Just like Donald Trump.

Offline sinkspur

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Re: Ronald Reagan: Trade Realist
« Reply #2 on: May 20, 2016, 02:49:12 am »
http://www.cato.org/publications/commentary/reagan-embraced-free-trade-immigration

Reagan Embraced Free Trade and Immigration

By Daniel Griswold
June 24, 2004

In the many eulogies to Ronald Reagan since his passing, virtually all acknowledge his role in defeating Soviet communism and reviving America’s self-confidence. But another aspect of Reagan’s record that should not be forgotten was his commitment to keeping America open to trade and immigration.

Reagan’s vision of an America open to commerce and peaceful, hardworking immigrants contradicts the anti-trade and anti-immigration views espoused by Lou Dobbs, Bill O’Reilly, Pat Buchanan, Rep. Tom Tancredo of Colorado, and many others who claim to speak for the conservative causes Reagan largely defined.

Reagan’s heart and head were clearly on the side of free trade. While president, he declared in 1986: “Our trade policy rests firmly on the foundation of free and open markets. I recognize … the inescapable conclusion that all of history has taught: The freer the flow of world trade, the stronger the tides of human progress and peace among nations.”

It was the Reagan administration that launched the Uruguay Round of multilateral trade negotiations in 1986 that lowered global tariffs and created the World Trade Organization. It was his administration that won approval of the U.S.-Canada Free Trade Agreement in 1988. That agreement soon expanded to include Mexico in what became the North American Free Trade Agreement, realizing a vision that Reagan first articulated in the 1980 campaign. It was Reagan who vetoed protectionist textile quota bills in 1985 and 1988.

During Reagan’s eight years in office, Americans eagerly expanded their engagement in the global economy. In 1980, the year before Reagan became president, Americans spent a total of $334 billion on imported goods and services and payments on foreign investment in the United States. By 1988, his last year in office, American spending in the global economy had nearly doubled, to $663 billion. If Reagan was a “protectionist,” it had no discernable effect on the ability of Americans to spend freely in the global marketplace. Fittingly, one of the major federal buildings on Pennsylvania Avenue is named the Ronald Reagan Building and International Trade Center.

Like most post-war presidents, Reagan championed free trade while selectively deviating from it. Critics of trade note correctly that Reagan negotiated “voluntary” import quotas for steel and Japanese cars and imposed Section 201 tariffs on imported motorcycles to protect Harley-Davidson. All true. But those were the exceptions and not the rule. They were tactical retreats designed to defuse rising protectionists pressures in Congress.

Reagan’s words and deeds regarding immigration were equally expansive. At a ceremony at Ellis Island in 1982, he spoke movingly of immigrants who “possessed a determination that with hard work and freedom, they would live a better life and their children even more so.” As with trade, Reagan’s record on immigration was mixed. He signed the Immigration Reform and Control Act of 1986, which included stepped up border enforcement and sanctions against employers who knowingly hire illegal workers. But that legislation also legalized 2.8 million undocumented workers. More immigrants entered the United States legally under President Reagan’s watch than under any previous U.S. president since Teddy Roosevelt.

Like President George W. Bush today, Reagan had the good sense and compassion to see illegal immigrants not as criminals but as human beings striving to build better lives through honest work. In a radio address in 1977, he noted that apples were rotting on trees in New England because no Americans were willing to pick them. “It makes one wonder about the illegal alien fuss. Are great numbers of our unemployed really victims of the illegal alien invasion or are those illegal tourists actually doing work our own people won’t do?” Reagan asked. “One thing is certain in this hungry world; no regulation or law should be allowed if it results in crops rotting in the fields for lack of harvesters.”

In his farewell address to the nation in January 1989, Reagan beautifully wove his view of free trade and immigration into his vision of a free society: “I’ve spoken of the shining city all my political life, but I don’t know if I ever quite communicated what I saw when I said it. But in my mind it was a tall, proud city built on rocks stronger than oceans, windswept, God-blessed and teeming with people of all kinds living in harmony and peace; a city with free ports that hummed with commerce and creativity. And if there had to be city walls, the walls had doors and the doors were open to anyone with the will and heart to get here.”

Compare Reagan’s hopeful, expansive, and inclusive view of America with the dour, crabbed, and exclusive view that characterizes certain conservatives who would claim his mantle. Their view of the world could not be more alien to the spirit of Ronald Reagan.
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Online Right_in_Virginia

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Re: Ronald Reagan: Trade Realist
« Reply #3 on: May 20, 2016, 02:53:50 am »
And your comments on Reagan's America First trade initiatives are what, exactly?

Surely, you have an opinion on Ronald Reagan?
« Last Edit: May 20, 2016, 02:54:51 am by Right_in_Virginia »

Offline sinkspur

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Re: Ronald Reagan: Trade Realist
« Reply #4 on: May 20, 2016, 02:57:11 am »
And your comments on Reagan's America First trade initiatives are what, exactly?

Surely, you have an opinion on Ronald Reagan?

Reagan never threatened or attempted tariffs on all the exports of an entire country.  Trump has.

Such an action would be illegal via an EO, and Congress would never approve something that would  provoke a recession.  So all this tariff talk against China and Mexico is BS.

Reagan used selective and temporary tariffs to forestall the screamers in Congress who hated Japan and thought the Japanese were buying America.  He grew exports and imports as you can see from the above article.

Reagan was a free trader.  Trump is not.
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Online Right_in_Virginia

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Re: Ronald Reagan: Trade Realist
« Reply #5 on: May 20, 2016, 03:04:58 am »

Reagan used selective and temporary tariffs to forestall the screamers in Congress who hated Japan and thought the Japanese were buying America.  Reagan was a free trader.  Trump is not.

It's semantics, Sink.  And you're not very good at it, so give it a rest.

President Reagan negotiated with, threatened, and punished countries threatening the health of the American economy, American jobs, and the American people.

The American people responded by doing what they do best....under Reagan's tough leadership....they helped make America great again.

We will do it all over again under the tough leadership of President Trump.

I suggest you find a way to deal with it.


« Last Edit: May 20, 2016, 03:06:17 am by Right_in_Virginia »

Offline Frank Cannon

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Re: Ronald Reagan: Trade Realist
« Reply #6 on: May 20, 2016, 03:06:48 am »
Reagan was protecting existing US companies, as lousy as they were. Trump wants to place tariffs on everything with some irrational notion we will just magically start making it here. Things he wants to tariff we don't make and in some cases don't want to make. He promised PA that he was bringing steel back to Bethlehem and Pittsburgh. We don't want it. Those two places are white collar centers now. Steel was a dirty mess to make and routinely stunk like crap because of the cokeworks.

Offline sinkspur

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Re: Ronald Reagan: Trade Realist
« Reply #7 on: May 20, 2016, 03:07:56 am »
It's semantics, Sink.  And you're not very good at it, so give it a rest.

President Reagan negotiated, threatened, and punished countries threatening the health of the American economy, American jobs, and the American people.

The American people responded by doing what they do best....under Reagan's tough leadership....they helped make America great again.

We will do it all over again under the tough leadership of President Trump.

I suggest you find a way to deal with it.

Reagan didn't threaten or punish.  He attempted negotiation, then imposed.  We were also in the middle of a horrible recession.

Reagan INCREASED imports.In other words, he didn't shut the door, as Trump wants to do.

Laws have changed since then, with the WTO and the various trade agreements.  Trump couldn't impose the tariffs he's advertised without the approval of Congress and a GOP House will never approve.
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Offline sinkspur

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Re: Ronald Reagan: Trade Realist
« Reply #8 on: May 20, 2016, 03:09:33 am »
It's semantics, Sink.  And you're not very good at it, so give it a rest.

President Reagan negotiated with, threatened, and punished countries threatening the health of the American economy, American jobs, and the American people.

The American people responded by doing what they do best....under Reagan's tough leadership....they helped make America great again.

We will do it all over again under the tough leadership of President Trump.

I suggest you find a way to deal with it.

By the way, I'm damned sick and tired of your condescension.  Your arrogance is one of the reasons Trump is hated around this place. You, as lead Trumpkin, give the rest of your motley crew a bad name.

So, YOU stop it.
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Online Right_in_Virginia

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Re: Ronald Reagan: Trade Realist
« Reply #9 on: May 20, 2016, 03:11:31 am »
Reagan was protecting existing US companies, as lousy as they were. Trump wants to place tariffs on everything

No.  You are wrong and just spamming the thread.  Get your facts straight and maybe then you'll understand that Donald Trump is following in Reagan's footprints when it comes to negotiating on behalf of America, her interests, jobs and workers.

Until you do some research, I hope you'll stand down so informed posters can have an intelligent conversation.  We've got an election to win and a nation to save.  Educate yourself and become a part of the solution or continue to post gibberish and remain a part of the problem.

The choice is yours.

Online Right_in_Virginia

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Re: Ronald Reagan: Trade Realist
« Reply #10 on: May 20, 2016, 03:12:35 am »
By the way, I'm damned sick and tired of your condescension.  Your arrogance is one of the reasons Trump is hated around this place. You, as lead Trumpkin, give the rest of your motley crew a bad name.

So, YOU stop it.

No. As important as your feelings are to me, saving this nation matters more.  Donald Trump is the right man for the right time.

Deal with it.



« Last Edit: May 20, 2016, 03:14:45 am by Right_in_Virginia »

Offline sinkspur

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Re: Ronald Reagan: Trade Realist
« Reply #11 on: May 20, 2016, 03:17:16 am »
No.  You are wrong and just spamming the thread.  Get your facts straight and maybe then you'll understand that Donald Trump is following in Reagan's footprints when it comes to negotiating on behalf of America, her interests, jobs and workers.

Until you do some research, I hope you'll stand down so informed posters can have an intelligent conversation.  We've got an election to win and a nation to save.  Educate yourself and become a part of the solution or continue to post gibberish and remain a part of the problem.

The choice is yours.

You're like Trump. You don't know jack about trade, so you post an article then stomp your feet.  And you insult posters constantly. 

Trump is NOTHING like Reagan.  Listen to this again:  Trump is threatening entire countries with tariffs.  HE CANNOT DO THAT!!!  Reagan was selective in his tariffs, against particular companies and industries and for a very limited time.  He was  a solid free trader.  Trump is just bullshitting you Trumpkins; he has no intention of leveling tariffs because he can't.

No wonder everybody hates Trump.  YOU are the reason.
« Last Edit: May 20, 2016, 03:17:36 am by sinkspur »
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Offline sinkspur

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Re: Ronald Reagan: Trade Realist
« Reply #12 on: May 20, 2016, 03:19:00 am »
No. As important as your feelings are to me, saving this nation matters more.  Donald Trump is the right man for the right time.

Deal with it.

I'm dealing with it. I am going to oppose Trump with every fiber of my being until he's defeated in November.

You foisted this fetid meat sack on us and the dogs are not going to eat the dog food.
Roy Moore's "spiritual warfare" is driving past a junior high without stopping.

Online Right_in_Virginia

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Re: Ronald Reagan: Trade Realist
« Reply #13 on: May 20, 2016, 03:21:46 am »
You're like Trump. You don't know jack about trade, so you post an article then stomp your feet.  And you insult posters constantly. 


Nope.  I post the truth.  I insult no one---unless the truth does.

I'm about done with your spam.  You and yours are becoming ground zero for opposition sound bites.  I can no longer allow this to go unchallenged.


Offline Frank Cannon

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Re: Ronald Reagan: Trade Realist
« Reply #14 on: May 20, 2016, 03:29:24 am »
No.  You are wrong and just spamming the thread.  Get your facts straight and maybe then you'll understand that Donald Trump is following in Reagan's footprints when it comes to negotiating on behalf of America, her interests, jobs and workers.

Until you do some research, I hope you'll stand down so informed posters can have an intelligent conversation.  We've got an election to win and a nation to save.  Educate yourself and become a part of the solution or continue to post gibberish and remain a part of the problem.

The choice is yours.

Your a mindless drone. That is why you are a Trump sycophant much in the fashion of the Obama groupies in '08. You hear what you want to hear and then splash Reagans name around to give it some sort of irrational legitimacy. He wants to put a 45% tariff on ANYTHING imported from China and a 35% tariff on ANYTHING imported from Mexico.


Offline sinkspur

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Re: Ronald Reagan: Trade Realist
« Reply #15 on: May 20, 2016, 03:30:22 am »
Nope.  I post the truth.  I insult no one---unless the truth does.

I'm about done with your spam.  You and yours are becoming ground zero for opposition sound bites.  I can no longer allow this to go unchallenged.

I'm waiting for you to challenge me with anything but Trump boilerplate. Your Trumpkin platitudes are not convincing.

Can you actually speak to any of this stuff you post?  Or do you just know how to threaten to "hold you accountable" if I don't vote for Trump?

WHat are you going to do?  Become more obnoxious?

Roy Moore's "spiritual warfare" is driving past a junior high without stopping.

Online Right_in_Virginia

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Re: Ronald Reagan: Trade Realist
« Reply #16 on: May 20, 2016, 03:31:17 am »
Your a mindless drone.

I am not.  You are.  And I've had enough of your unchallenged  :bs:

Enough.

Online Right_in_Virginia

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Re: Ronald Reagan: Trade Realist
« Reply #17 on: May 20, 2016, 03:33:55 am »
I would like to bring this thread back to the topic of Ronald Reagan:  Trade Realist and the similarities between Reagan's actions and Trump's plans.

Let's try and ignore the usual spammers.

TTTT  :patriot:

Offline sinkspur

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Re: Ronald Reagan: Trade Realist
« Reply #18 on: May 20, 2016, 03:35:34 am »
I would like to bring this thread back to the topic of Ronald Reagan:  Trade Realist and the similarities between Reagan's actions and Trump's plans.

Let's try and ignore the usual spammers.

TTTT  :patriot:

What are Trump's plans?  In your words. Don't point me to his website, which is blather.
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Offline Norm Lenhart

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Re: Ronald Reagan: Trade Realist
« Reply #19 on: May 20, 2016, 03:37:11 am »
Nope.  I post the truth.  I insult no one---unless the truth does.

I'm about done with your spam.  You and yours are becoming ground zero for opposition sound bites.  I can no longer allow this to go unchallenged.

Just so you know, several times a day, some trump supporter here posts something using Reagan to promote Trump from the left. Invariably someone within moments, posts actual historical data thoroughly discrediting the half truths, no-truths and outright fantasy about RR your team pumps out.

The really great thing about this is that the lurkers can then use that factual data to see whose spreading inaccuracy and it always comes back to the same small group of Trump supporters. Which only helps America bu turning more and more people away from the NYC liberal.

So please, keep campaigning against Trump. You are doing an outstanding job.
« Last Edit: May 20, 2016, 03:38:08 am by Norm Lenhart »

Offline sinkspur

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Re: Ronald Reagan: Trade Realist
« Reply #20 on: May 20, 2016, 03:37:59 am »
Here's Trump's plan, dissected:

http://www.gopbriefingroom.com/index.php/topic,207228.0.html

Quote
The most immediate damage would be done to consumers of imports in the United States. As basic economics and U.S. customs law dictate, they would be the ones who pay Trump’s tariffs—or, if those tariffs result in making it pointless to buy those imported goods, would be forced to pay higher prices for the same goods manufactured in the United States. It’s difficult to predict the precise magnitude of such taxes, but Representative Chris Collins of New York, one of Trump’s own spokesmen, recently suggested that the cost of food, clothing, and other necessities would rise by 10 to 15 percent. Considering the average American household spends about $11,000 on these items each year, such a tax would translate to an extra $1,100 to $1,650 per year that American families would have to spend under President Trump for the same things that they’re consuming right now—money they could have saved, invested, or spent on other important necessities (and the U.S. jobs that provide them). Almost 90 percent of free trade’s consumer benefits accrue to poor and middle-class consumers; Trump’s tariffs would have precisely the opposite effect. Thus, the tax imposed by tariffs is highly regressive.

Most U.S. manufacturers also would be affected for the worse by Trump’s tariffs. Because more than half of all U.S. imports, including from China, provide necessities for other American manufacturers (industrial supplies and materials or non-automotive capital goods), tariffs on these products would force import-consuming firms to pay more for the things they need to remain globally competitive. Such higher costs would mean lower output, fewer employees, and, in the worst cases, outright bankruptcy.

Trump's tariffs would likely cause a recession.  Which is why they will never happen.
« Last Edit: May 20, 2016, 03:41:03 am by sinkspur »
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Re: Ronald Reagan: Trade Realist
« Reply #21 on: May 20, 2016, 03:38:17 am »
Great post! :beer: Anything that shows similarities between Reagan and Trump makes the neverTrumps squeal like mashed cats.

Offline jmyrlefuller

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Re: Ronald Reagan: Trade Realist
« Reply #22 on: May 20, 2016, 03:39:39 am »
I would like to bring this thread back to the topic of Ronald Reagan:  Trade Realist and the similarities between Reagan's actions and Trump's plans.

Let's try and ignore the usual spammers.

TTTT  :patriot:
That'd be fine, if we could actually believe him.
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Offline Frank Cannon

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Re: Ronald Reagan: Trade Realist
« Reply #23 on: May 20, 2016, 03:41:08 am »
I am not.  You are.  And I've had enough of your unchallenged  :bs:

Enough.

Unchallenged? You're the stooge that will not engage in my facts that Trump is putting Tariffs on entire countries and Reagan put tariffs on specific products.

I would also like to add that it is pathetic that you need to use a cartoon to say something. Why don't you take a page out of your dear leaders book and "say it like it is"? The word is Bullshit. You had better go full in to the debasement of the culture because you are in full support of a Presidential candidate that is doing it as we speak.


http://www.youtube.com/watch?v=wN7KHWdyrbI

Offline sinkspur

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Re: Ronald Reagan: Trade Realist
« Reply #24 on: May 20, 2016, 03:42:39 am »
Great post! :beer: Anything that shows similarities between Reagan and Trump makes the neverTrumps squeal like mashed cats.

No. It makes us laugh because Trump is in no way like Ronald Reagan.  More like The Big Lebowski.
Roy Moore's "spiritual warfare" is driving past a junior high without stopping.