Unfinished Legacy: President Reagan and the Socrates Project (Issue #478)

President Reagan established a proud legacy during his two terms in office, the philosophical hallmarks of which were a reduction in the size of the federal government and empowerment of the private sector of the economy. What is not fully appreciated is that Reagan intended another aspect, which should still be added. Reagan started a process whereby he would overlay this aspect through executive order, at least initially. Unfortunately his attempt to provide a technology strategy and vision did not survive the follow-on George Herbert Walker Bush administration.




The executive order was drafted towards the end of his second term and would have created a government agency somewhat on par with the National Aeronautics and Space Administration (NASA). The agency would have answered directly to the White House and had the mission and the means to enable U.S. government organizations and American companies to work together in a highly coherent and unprecedented fashion. Reagan essentially tried to provide the marketplace, as well as select government planning agencies, with new tools that were possible with the onset of the Information Age.



Reagan was convinced that this additional aspect would ensure not only America’s economic survival, but also its preeminence and continued economic superpower status. On the basis of his draft executive order, Michael C. Sekora established a prototype program called the Socrates Project within the U.S. intelligence community. The program was aimed at improving America’s economic efficiencies and reducing the frictional components of the marketplace through better information, particularly in those domains relating to technology. The program design was meant specifically to address an apparent decline in U.S. manufacturing and competitiveness worldwide. The Socrates Project’s mission was two-fold: to determine the underlying cause of America’s declining competitiveness; and to use this determination to propose the subsequent development of means to reverse the economic decline.



To determine the cause of America’s declining competitiveness, the Socrates team used all source intelligence to generate a holistic, bird’s eye view of competition worldwide. The team’s view and understanding went well beyond the inferior data that is still the best available to most university professors, think tank analysts and consultants, in terms of scope and completeness.



What the Socrates team determined was that the source of America’s declining competitiveness followed an epochal shift in thinking that took place after World War II. It was not directly related to investment or to patterns of destruction, so much as it was based on the decision-makers’ response to post-war political and economic conditions. At the end of World War II decision-makers throughout the U.S. began shifting away from technology-based planning and began adopting economic-based planning instead. Within a few years, the economic-based planning model had become the standard, all-but-unchallenged foundation for decision-making throughout U.S. industry, government and academe. At the same time, much of the rest of the world continued refining and utilizing technology-based models of planning.



In technology-based planning the foundation for decision-making is the acquisition and utilization of technology, where technology is defined as any application of science to accomplish a function, in order to produce a better product or service. Based on targeted information, technology can be manipulated, offensively and defensively in a chess-like way, in order to acquire and maintain competitive advantage. In contrast, economic-based planning models lead to manipulation of funds as the foundation for decision-making. The measure of success based on economic-based thinking, is the efficiency at which one manipulates so-called economic drivers. Economic manipulation, unlike its technological counterpart is unrelated to anything real or tangible and is not even integrally coordinated with the nation’s wealth or productive outputs per se.



What was also obvious to the Socrates team from their unique bird’s eye view of competition, was that countries like China and India were using technology-based planning to catch up and further, to undercut America’s ability to generate or regain competitive advantage. Indeed, they were rapidly transforming themselves into world economic superpowers as our status slipped and the U.S. position was being eclipsed. While we in the U.S. were coming up with increasingly sophisticated economic shell games to maximize profits, China and India were systematically outmaneuvering us in the acquisition and utilization of technology to eliminate our ability to produce products and services that had competitive advantage in foreign markets, and increasingly in our own domestic markets.



With the global bait and switch nearly completed and the United States suffering through its worst recession since the Great Depression, Reagan’s initiative with Socrates seems positively prescient. With revitalized conservatism in vogue again since the last election, tea partiers and conservatives in the next Congress would do well, not only to follow the fiscally prudent “Roadmap for America’s Future” laid out by Congressman Paul Ryan (R-WI), but to revisit the national strategic level effort required which Ronald Reagan suggested before we got into this mess.