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Encouraging states to raise their own revenue? He was speaking Jim Crow the whole time. We certainly have different interpretations the guy. He had big money's interests and advertised for them effectively, started out as GE's mouthpiece. He knew what he conveyed when he used certain terms and phrases. I remember the impressions the Gipper's softly spoken unkind words left:

Reagan also trumpeted his racial appeals in blasts against welfare cheats. On the stump, Reagan repeatedly invoked a story of a “Chicago welfare queen” with “eighty names, thirty addresses, [and] twelve Social Security cards [who] is collecting veteran’s benefits on four non-existing deceased husbands. She’s got Medicaid, getting food stamps, and she is collecting welfare under each of her names. Her tax-free cash income is over $150,000.” Often, Reagan placed his mythical welfare queen behind the wheel of a Cadillac, tooling around in flashy splendor. Beyond propagating the stereotypical image of a lazy, larcenous black woman ripping off society’s generosity without remorse, Reagan also implied another stereotype, this one about whites: they were the workers, the tax payers, the persons playing by the rules and struggling to make ends meet while brazen minorities partied with their hard-earned tax dollars. More directly placing the white voter in the story, Reagan frequently elicited supportive outrage by criticizing the food stamp program as helping “some young fellow ahead of you to buy a T-bone steak” while “you were waiting in line to buy hamburger.” [from Salon]

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