Irish ambassador questioned ‘Reaganomics’

At the beginning of 1983, Irish ambassador Tadgh O’Sullivan believed it was going to be a decisive year for US President Ronald Reagan whose competency was being severely questioned both on the ideological and economic fronts.

The ambassador clearly questioned what was being described as “Reaganomics”. The president was cutting back on government revenue by lowering taxes, but at the same time, he was increasing spending by “building up the military strength of the United States”. As a result, the budget deficit was growing precipitately. Even the president’s “great friend” Senator Paul Laxalt of Nevada admitted he was terrified by the deficit, which he described as “huge and probably intolerable”.

“Criticism in Congress is only out done by that of the media,” O’Sullivan added. “It is plain that rigid adherence to principle has jeopardised Reagan’s control of events.”