Louisiana State University LSU Digital Commons LSU Doctoral Dissertations Graduate School 2003 Deficit politics and democratic unity: the saga of Tip O'Neill, Jim Wright, and the conservative Democrats in the House of Representatives during the Reagand Era Karl Gerard Brandt Louisiana State University and Agricultural and Mechanical College, [email protected] Follow this and additional works at: https://digitalcommons.lsu.edu/gradschool_dissertations Part of the History Commons Recommended Citation Brandt, Karl Gerard, "Deficit politics and democratic unity: the saga of Tip O'Neill, Jim Wright, and the conservative Democrats in the House of Representatives during the Reagand Era" (2003). LSU Doctoral Dissertations. 2780. https://digitalcommons.lsu.edu/gradschool_dissertations/2780 This Dissertation is brought to you for free and open access by the Graduate School at LSU Digital Commons. It has been accepted for inclusion in LSU Doctoral Dissertations by an authorized graduate school editor of LSU Digital Commons. For more information, please [email protected]. DEFICIT POLITICS AND DEMOCRATIC UNITY: THE SAGA OF TIP O’NEILL, JIM WRIGHT, AND THE CONSERVATIVE DEMOCRATS IN THE HOUSE OF REPRESENTATIVES DURING THE REAGAN ERA A Dissertation Submitted to the Graduate Faculty of the Louisiana State University and Agricultural and Mechanical College in partial fulfillment of the requirements for the degree of Doctor of Philosophy in The Department of History by Karl Gerard Brandt B.A., The University of Texas at Austin, 1997 M.A., Louisiana State University, 2000 August 2003 FOREWORD Battles over fiscal policy involved the Democratic Leadership of the House of Representatives, the conservative Democratic faction of the House, and the administration of Ronald Reagan. Beginning in 1981, the Reagan administration could count on the support of a Republican-controlled Senate, but the Democratic-controlled House could impede Reagan’s legislative plans. This obstacle could be overcome if Reagan could reach an arrangement with conservative Democrats in the House who had a strained relationship with the Democratic Leadership in Congress and the national Democratic Party. Naturally, the House Democratic Leadership realized the potential conservative Democrats had to shape the balance of power. The relationship between the Leadership and the conservatives raised universal questions that faced political organizations. A political party exists because of a shared program, ideology, or material interest, but how does that party create that unifying bond? Problems arise if a minority group, or groups, disagree with the chosen party position. Should the minority leave the party? Is a minority justified in demanding that their viewpoint be recognized in exchange for support? If a party demands too much conformity from its members, it runs the risk of driving away people. Since the Democratic Party prided itself on its diversity, the Reagan years would see this claim put to the test. Although the 1980s would see several issues receive heavy debate and disagreement, the federal fiscal policy stands out as highly salient. First, the budget work of the federal government set the priorities for the nation and created the context for the other aspects of federal policy-making. How a government program is managed is based on the precondition that that particular program is funded at all. Budget constraints have the potential to limit expenditures that could be applied to both weapons systems and the improvement of public health. Second, the U. S. economy faced a different world than it had faced after World War II. Tougher competition from other nations’ products, high inflation, high energy prices, and the removal of American manufacturing to other nations had created a situation that made Americans worry about their economic future. Reagan claimed that his budget and tax policies would revive the U. S. economy. How these policies ii would fare, if implemented, could have serious consequences. Third, Reagan and the Democrats found fiscal policy to be a very contentious issue, and the gravity of this topic meant that all participants would put much effort into maximizing their influence. The intensity of partisanship and the relative unity or disunity of each party could be shaped significantly by fiscal debate. Therefore, this dissertation examines the efforts of the House Democratic Leadership to build party unity and to enhance its operating methods in battles with the Reagan administration over fiscal policy and the future of the United States, 1980-1989. These efforts involved many individuals. With Reagan’s victory and the Republicans’ capture of the Senate, Speaker Tip O’Neill of Massachusetts emerged as the national leader of the Democratic Party. It was he, not Jimmy Carter or Walter Mondale or Edward Kennedy, who became the pointman for the political battles with Reagan and the Republicans. His successor, Jim Wright of Texas, used his parliamentary skill and the powers of the Leadership to mediate intraparty ideological conflicts and to fight for a Democratic program. Much of the fiscal conflict’s burden was carried by Jim Jones of Oklahoma as Chairman of the Budget Committee. He responded by retooling the nuts- and-bolts process of drafting a Democratic budget. At the same time, Gillis Long of Louisiana used an activist Caucus program to find new methods to promote Democratic consensus and cooperation. The conservative Democrats played, as a group and as individuals, many roles during the Reagan years: quasi-third party, Democratic backbenchers, Reagan supporters, and constructive Democrats pursuing compromise, consensus, and common-sense fiscal policies. Some of the key men who would fulfill these roles and illustrate the transformation of the conservative Democrats and the Democratic Party included Marvin Leath and Charles Stenholm. By 1989, it was clear that the Reagan Revolution had failed. Conservative Democrats found a Party willing to listen, and the battles of House politics forged a consensus on the budget. iii TABLE OF CONTENTS FOREWORD.................................................................................................................................ii ABSTRACT..................................................................................................................................v CHAPTER 1 A NEW CONTEST..............................................................................................1 2 THE BUDGET.....................................................................................................22 3 TAX TIME............................................................................................................47 4 DEMOCRATIC REBUILDING........................................................................58 5 NEW OPPORTUNITIES...................................................................................73 6 HARD CHOICES..............................................................................................98 7 LIMITED OPTIONS.........................................................................................123 8 THERMIDOR....................................................................................................144 9 A NEW STATUS QUO..................................................................................170 10 THE WRIGHT PATH.......................................................................................185 11 STALEMATE....................................................................................................221 12 CONCLUSION: A MIXED LEGACY.........................................................235 BIBLIOGRAPHY.....................................................................................................................246 APPENDIX ON BUDGET TERMS.......................................................................................249 VITA...........................................................................................................................................250 iv ABSTRACT The Reagan Era featured partisan clashes, controversy over fiscal policy, and a time of trial for the Democratic Party and its claim of diversity. This dissertation examines the efforts of the House Democratic Leadership to build party unity and to enhance its operating methods in battles with the Reagan administration over fiscal policy and the future of the United States. The House Democratic Leadership was challenged by the conservative Democrats. In 1980, the conservatives formed the Conservative Democratic Forum (CDF). Acting as a quasi-third party, the CDF was instrumental in passage of Reagan’s economic program in 1981. Afterwards, the CDF was unable to maintain its coalition with Reagan and the Republicans or to act as a quasi-third party. Many conservative Democrats became disillusioned with the large deficits produced by Reaganomics. Conservative Democrats had to decide whether to work within the Democratic Party, become Republicans, or isolate themselves from influence. Meanwhile, the House Democratic Leadership was retooling its methods. The Caucus was revived. It was used to promote discussion and find consensus among the diverse array of liberals, moderates, and conservatives. The Leadership followed a moderate approach to building party unity that encouraged, but did not compel, party loyalty. The House Democrats worked to find budget policies that could satisfy all members while simultaneously confronting the worsening fiscal crisis.