8 Of History’s Boldest Presidential Promises: Finance Edition

It’s February, which means the US Presidential Primaries are underway. This can only mean one thing: more campaign promises. Republican hopeful Donald Trump has already vowed to build a “great wall” on the southern border to keep illegal Mexican migrants out.[1] This got us thinking about some of the boldest promises made by US presidents and presidential candidates. We found eight you might enjoy.

Bill Clinton: Universal Healthcare

US President Bill Clinton promised a national healthcare system in his first campaign for presidency in 1992. What made this promise so bold was that Clinton actually tried to implement it when he assumed office. In 1993 he set up the National Healthcare Reform Tax Force, which was headed by his wife Hillary Clinton. By all accounts, Clinton’s plan was far-reaching and would impact virtually every aspect of the healthcare industry. The proposed legislation totalled a whopping 1,342 pages.[2] Unfortunately for Clinton, his plan was met with stiff opposition from Congress, which delivered a major blow to the Democrats during the 1994 mid-term elections.[3]

Clinton’s vision of universal healthcare never came to fruition. The closest any president has gotten so far is Barrack Obama, who in 2010 introduced the Affordable Care Act, a far more limited overhaul of the healthcare system than proposed by Clinton in 1992.

Harry Truman: Universal Healthcare

The healthcare debate in America has raged on for decades. Some say the economic benefits of a privatized system for insurers, pharmaceutical companies and private hospitals are too great to ever make way for a nationalized system of healthcare. Harry Truman certainly didn’t believe this to be the case in 1945 when he said that “Everyone should have ready access to all necessary medical, hospital and related services.”

Universal healthcare was fresh on the mind of Truman, who announced his plans to expand public care shortly after succeeding Roosevelt in 1945. As history has demonstrated, Truman’s plan was ultimately defeated. America was too preoccupied with the Cold War and the Korean War. Congressional Republicans and the American Medical Association also put forth strong opposition to the proposed plan.[4]

Jimmy Carter: End Dependence on Foreign Oil

The 1970s was a volatile decade for the global energy markets. With the memory of the 1973 Arab oil embargo fresh in his mind, Jimmy Carter vowed to end America’s dependence on foreign oil. Carter, a long-time advocate of alternative fuel sources that reduce our reliance on foreign oil “cartels,” elaborated on his campaign promise in 1979 in a famous “Crisis of Confidence speech.”

“The Middle East has only 5 percent of the world’s energy, but the United States has 24 percent,” Carter said.[5]

While Carter certainly can’t take credit, the United States has slowly weaned itself off Mideast oil and is today the world’s largest oil producer at over 14 million barrels per day.[6]

Newt Gingrich: US Moon Colony by 2020

Newt Gingrich really did shoot for the moon in his 2012 presidential campaign by promising to build the first extraterrestrial colony by the end of his second term. Gingrich was quick to remind his detractors that John F. Kennedy made a similar promise in 1961 (this time, to put a man on the moon by the end of the decade). The difference, however, was that Kennedy’s pledge wasn’t part of his campaign. He also didn’t vow to cut NASA funding and use part of its budget to fund prizes for private companies. Gingrich vowed to do just that.[7] Gingrich didn’t even make the Republican ballot in 2012, putting his dream of a moon colony on hold.

Donald Trump: US-China Trade Reform

Donald Trump has a bit of an obsession with China, a country he says is “killing us economically.”

“America fully opened its markets to China but China has not reciprocated,” Trump writes. “Its Great Wall of Protectionism uses unlawful tariff and non-tariff barriers to keep Americans companies out of China and to tilt the playing field in their favor.

In response, Trump has outlined a four-point plan that includes immediately declaring China a price manipulator. Second, he wants to force China to uphold intellectual property laws. Third, Trump vows to reclaim millions of US jobs by putting an end to “China’s illegal export subsidies and tax labor and environmental standards.” Finally, Trump promises to strengthen America’s negotiating position, thereby discouraging “Chinese adventurism.”[8]

We’ll see how the world’s second-largest economy responds should Trump assume office in 2007.

Cut Everything: Rick Perry

What do the Departments of Commerce, Education and Energy have in common? They’re useless, according to Texas Governor and 2012 Republican presidential hopeful Rick Perry. Republicans have a long history of promising “small government,” but Governor Perry may have taken this too far in 2011. After all, the Department of Commerce has the US Patent and Trademark Office, not to mention the Census Bureau and National Weather Service. The Department of Energy protects US nuclear stockpiles and the Education Department coordinates federal assistance to education.[9]

Rick Perry received a lot of grief for forgetting the Department of Energy in a 2011 debate. His 53 second brain cramp cost him big time, as he bumbled around stage trying to remember which department he wanted to axe.

“Commerce, Education, and the – what’s the third one there? Let’s see.”[10]

Eliminate Poverty: Lyndon B. Johnson

American presidents have a tendency of declaring war on things – cancer, drugs, countries and even poverty. Lyndon B. Johnson first declared the “War on Poverty” in his 1964 State of the Union Address. Part of the promise entailed expanding federal welfare programs, which were in many ways an extension of Franklin D. Roosevelt’s New Deal. When Johnson was in office, America’s poverty rate was around 19 percent. [11] By 2010, it had fallen to around 15 percent. While poverty reduction may have worked in absolute terms, the jury is still out as to whether Americans are better off now than they were before. The poverty rate experienced its most dramatic fall under Bill Clinton, reaching 11.3 percent in 2000.[12]

Interstate Highway System: Dwight E. Eisenhower

While Dwight Eisenhower’s promise of building an interstate highway system was rooted in national security as opposed to economic growth, its economic benefits have been tremendous. The plan was put forward three years into Eisenhower’s first time as President.

“Our unity as a nation is sustained by free communication of thought and by easy transportation of people and goods,” Truman said in a Special Message to the Congress in 1955.

In Eisenhower’s view, an interstate highway system would provide easy evacuation of major cities and enable greater mobilization of the military in case of war.[13] Thankfully, very few people today consider the interstate system an essential function of war mobilization. Rather, it is considered an essential means of transportation throughout the country.

Conclusions

Election time does a really good job blurring the lines between political pandering and meaningful reform. In the case of US politics, it’s not always easy deciphering which is which. As the primaries get under way, expect to be bombarded by a deluge of elaborate promises – some may even come to fruition while others will probably die a quiet death.

[1] Kate Drew (October 9, 2015). “This is what Trump’s border wall could call US.” CNBC.

[2] Richard Hamburge, Scott Ballin. Politics of the Demise of Healthcare Reform. Circulation.

[3] Michael Schmidt. “Talk Is Cheap: Campaign Promises And The Economy.” Investopedia.

[4] Real Clear Politics. 10 of History’s Boldest Presidential Promises.

[5] Real Clear Politics. 10 of History’s Boldest Presidential Promises.

[6] EIA. International Energy Statistics: Total Petroleum and Other Liquids Production 2014.

[7] Adam Martin (September 4, 2012). “The 15 Craziest Politician Campaign Promises.” Complex.com.

[8] Matthew Boyle (November 10, 2015). “Donald Trump Releases Trade Plan: ‘China Will Be on Notice that America Is Back in Global Leadership Business.” Breitbart.com.

[9] Zachary Roth (November 10, 2011). “Rick Perry wants to scrap three government departments. What would that mean?

[10] Ed O’Keefe (November 10, 2011). “What do the Departments of Commerce, Education and Energy think of Perry’s plan.” Washington Post.

[11] Real Clear Politics. 10 of History’s Boldest Presidential Promises.

[12] National Poverty Center. Poverty Facts.

[13] Real Clear Politics. 10 of History’s Boldest Presidential Promises.

Disclosure: None.

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