David Alan Stockman (born November 10, 1946) is an American politician
and former businessman who served as a Republican U.S. Representative
from the state of
Michigan (1977–1981) and as the Director of the
Office of Management and Budget
Office of Management and Budget (1981–1985) under President Ronald
1 Early life and education
2 Political career
2.2 Office of Management and Budget
2.3 Fiscal legacy
3 Business career
3.1 Collins & Aikman Corp.
3.2 Criminal and civil charges
3.3 Web site
4 Personal life
8 External links
Early life and education
Stockman was born in Fort Hood, Texas, the son of Allen Stockman, a
fruit farmer, and Carol (née Bartz). He is of German descent, and
his family's surname was originally "Stockmann". He was raised in a
conservative family, and his maternal grandfather, William Bartz, was
a Republican county treasurer for 30 years. Stockman was
educated at public schools in Stevensville, Michigan. He graduated
Lakeshore High School
Lakeshore High School in 1964 and received a B.A. in History
Michigan State University in 1968. He was a graduate student at
Harvard University, 1968–1970 studying theology.
Stockman's Congressional portrait
He served as special assistant to
United States Representative and
1980 U.S. presidential candidate John Anderson of Illinois,
1970–1972, and was executive director,
United States House of
Representatives Republican Conference, 1972–1975.
Stockman was elected to the
United States House of Representatives
United States House of Representatives for
the 95th Congress and was reelected in two subsequent elections,
serving from January 3, 1977, until his resignation January 21, 1981,
to accept appointment as Director of the Office of Management and
U.S. President Ronald Reagan.
Office of Management and Budget
Stockman was one of the most controversial OMB directors ever
appointed, also known as the "Father of Reaganomics." He resigned in
August 1985. Committed to the doctrine of supply-side economics, he
assisted in the passing of the "Reagan Budget" (the Gramm-Latta
Budget), which Stockman hoped would curtail the "welfare state". He
thus gained a reputation as a tough negotiator with House Speaker Tip
O'Neill's Democratic-controlled House of Representatives and Majority
Leader Howard Baker's Republican-controlled Senate. During this
period, Stockman became well known to the public during the
contentious political wrangling concerning the role of the federal
government in American society.
Stockman's influence within the Reagan Administration was weakened
Atlantic Monthly magazine published the infamous 18,246 word
article, "The Education of David Stockman", in its December 1981
issue, based on lengthy interviews Stockman gave to reporter William
Stockman was quoted as referring to Reagan's tax act in these terms:
"I mean, Kemp-Roth [Reagan's 1981 tax cut] was always a Trojan horse
to bring down the top rate.... It's kind of hard to sell 'trickle
down.' So the supply-side formula was the only way to get a tax policy
that was really 'trickle down.' Supply-side is 'trickle-down'
theory." Of the budget process during his first year on the job,
Stockman was quoted as saying, "None of us really understands what's
going on with all these numbers," which was used as the subtitle of
After "being taken to the woodshed by the president" Citation needed
because of his candor with Greider, Stockman became concerned with
the projected trend of increasingly large federal deficits and the
rapidly expanding national debt. On 1 August 1985, he resigned from
OMB and later wrote a memoir of his experience in the Reagan
Administration titled The Triumph of Politics: Why the Reagan
Revolution Failed in which he specifically criticized the failure of
congressional Republicans to endorse a reduction of government
spending to offset large tax decreases to avoid the creation of large
deficits and an increasing national debt.
President Jimmy Carter's last fiscal year budget ended with a
$79.0 billion budget deficit (and a national debt of
$907,701,000,000  as of September 30, 1980), ending during the
period of David Stockman's and Ronald Reagan's first year in office,
on October 1, 1981. The gross federal national debt had just
increased to $1.0 trillion during October 1981 ($998 billion
on 30 September 1981, up from $907.7 billion during the last full
fiscal year of the Carter administration).
By 30 September 1985, four and a half years into the Reagan
administration and shortly after Stockman's resignation from the OMB
during August 1985, the gross federal debt was $1.8 trillion.
Stockman's OMB work within the administration during 1981 until August
1985 was dedicated to negotiating with the Senate and House about the
next fiscal year's budget, executed later during the autumn of 1985,
which resulted in the national debt becoming $2.1 trillion at
fiscal year end 30 September 1986.
In 1981, Stockman received the Samuel S. Beard Award for Greatest
Public Service by an Individual 35 Years or Under, an award given out
annually by Jefferson Awards.
After leaving government, Stockman joined the Wall St. investment bank
Salomon Brothers and later became a partner of the New York–based
private equity company, the Blackstone Group.:125–127 His record
was mixed at Blackstone, with some very good investments, such as
American Axle, but also failures, including Haynes International and
Republic Technologies.:144–147 During 1999, after Blackstone CEO
Stephen A. Schwarzman
Stephen A. Schwarzman curtailed Stockman's role in managing the
investments he had developed,:146 Stockman resigned from
Blackstone to start his own private equity fund company, Heartland
Industrial Partners, L.P., based in Greenwich, Connecticut.
On the strength of his investment record at Blackstone, Stockman and
his partners raised $1.3 billion of equity from institutional and
other investors. With Stockman's guidance, Heartland used a contrarian
investment strategy, buying controlling interests in companies
operating in sectors of the U.S. economy that were attracting the
least amount of new equity: auto parts and textiles. With the help of
about $9 billion in
Wall Street debt financing, Heartland completed
more than 20 transactions in less than 2 years to create four
portfolio companies: Springs Industries, Metaldyne, Collins &
Aikman, and TriMas. Several major investments performed very poorly,
however. Collins & Aikman filed for bankruptcy during 2005 and
when Heartland sold
Metaldyne to Asahi Tec Corp. during 2006,
Heartland lost most of the $340 million of equity it had invested in
Collins & Aikman Corp.
During August 2003, Stockman became CEO of Collins & Aikman
Corporation, a Detroit-based manufacturer of automotive interior
components. He was ousted from that job days before Collins &
Aikman filed for bankruptcy under Chapter 11 on May 17, 2005.
Criminal and civil charges
On March 26, 2007, federal prosecutors in
Manhattan indicted Stockman
in "a scheme... to defraud [Collins & Aikman]'s investors, banks
and creditors by manipulating C&A's reported revenues and
United States Securities and Exchange Commission also
brought civil charges against Stockman related to actions that he
performed while CEO of Collins & Aikman. Stockman suffered a
personal financial loss, over $13 million, along with losses suffered
by as many as 15,000 Collins & Aikman employees worldwide.
Stockman said in a statement posted on his law firm's website that the
company's end was the consequence of an industry decline, not due to
fraud. On January 9, 2009, the US Attorney's Office announced that
it did not intend to prosecute Stockman for this case.
In March 2014 Stockman launched a web based daily periodical, David
Stockman's Contra Corner featuring both his own articles and those
from leading contrarian thinkers on geopolitics, economics, and
Stockman lives in the
Upper East Side
Upper East Side of
Manhattan in New York
City. He is married to Jennifer Blei Stockman and is the father of
two children, Rachel and Victoria. Jennifer Blei Stockman is a
chairwoman emerita of the Republican Majority for Choice, and
President of the
Solomon R. Guggenheim Foundation
Solomon R. Guggenheim Foundation Board of
Trustees. In 2013, Stockman signed an amicus brief to the Supreme
Court in favor of same-sex marriage.
This page is a candidate to be copied to Wikiquote using the Transwiki
process. If the page can be expanded into an encyclopedic article,
rather than a list of quotations, please do so and remove this
"[Social Security] has to be means-tested. And Medicare needs to be
means-tested [...] Let the Bush tax cuts expire. Let the capital gains
go back to the same rate as ordinary income."
"The Republican Party has totally abdicated its job in our democracy,
which is to act as the guardian of fiscal discipline and
responsibility. They're on an anti-tax jihad -- one that benefits the
"I invest in anything that
Bernanke can’t destroy, including gold,
canned beans, bottled water and flashlight batteries."
"Ninety-two percent of the wealth is owned by five percent of the
people." (Bloomberg TV 2013)
"[T]he Republican Party was hijacked by modern imperialists during the
Reagan era. As a consequence, the conservative party cannot perform
its natural function as watchdog of the public purse because it is
constantly seeking legislative action to provision a vast war machine
of invasion and occupation." 
The Reagan Economic Plan, 1981
The Triumph of Politics: Why the Reagan Revolution Failed, Harper
& Row, 1986, ISBN 9780060155605
The Great Deformation: The Corruption of Capitalism in America,
PublicAffairs, 2013, ISBN 9781586489120
Trumped!: A Nation on the Brink of Ruin, and How to Bring it Back,
^ "LOSING THE BATTLES AND WINNING THE WAR". Lexington Herald-Leader.
April 7, 1985.
^ Hunter, Marjorie (December 12, 1980). "Office of Management and
Budget David Alan Stockman; Strong Support From Kemp Chosen by House
Republicans Views on Economy". The New York Times.
^ "News65". 19 June 1998.
^ "The Tuscaloosa News - Google News Archive Search".
^ "The Montreal Gazette - Google News Archive Search".
^ Heibutzki, Ralph (2012-06-04). "Stockman Surprise Speaker at
Lakeshore's Graduation". The Herald-Palladium. Retrieved
^ a b c
William Greider (December 1981). "The Education of David
Stockman". The Atlantic Online.
^ a b c d Treasury Department's Historical Debt Outstanding - Annual
1950 - 1999
Office of Management and Budget
Office of Management and Budget Historical Tables see Table 1.1
^ "Jefferson Awards". Jefferson Awards.
^ a b c David Carey & John E. Morris (2001). King of Capital: The
Remarkable Rise, Fall and Rise Again of Steve Schwarzman and
^ a b "Collins & Aikman seeks to emerge from bankruptcy,"
Bloomberg News article by Jeff Bennett, published in the newspaper The
Advocate of Stamford and (identical version, perhaps with changes by
the local editor in the common business section for both newspapers)
in the Greenwich Time on September 5, 2006, page A7, The Advocate
^ David Carey and Lou Whiteman, "PE firms find buyer for Metaldyne,"
The Deal, Sept. 1, 2006.
^ Levin, Doris (29 March 2007). "Stockman Outsmarts Self in Detroit".
Bloomberg. Retrieved 19 September 2014.
^ "Ex-Collins Chief
David Stockman Charged With Fraud (Update10)".
Bloomberg. March 26, 2007. Retrieved 2010-08-02.
^ "Fraud charges dropped against ex-Reagan aide David Stockman".
Chicago Tribune. 10 January 2009. Retrieved 19 September 2014.
^ About Us Archived 2008-09-21 at the Wayback Machine. Republican
Majority for Choice
^ Trustees, Solomon R. Guggenheim Foundation
David Stockman Isn't buying it". CBS News. March 2, 2012.
^ Dickinson, Tim (Nov 9, 2011). "How the GOP Became the Party of the
Rich". Rolling Stone. Retrieved 2011-11-10.
^ David Stockman: I Invest In Anything
Bernanke Can't Destroy, John
Carney, CNBC, October 6, 2010
^ Stockman, David (2013). The Great Deformation -- the corruption of
capitalism in America. PublicAffairs. p. 688.
Biography at the Biographical Directory of the
United States Congress
Appearances on C-SPAN
Four Deformations of the Apocalypse, David Stockman, The New York
Times, July 31, 2010, op-ed
Ronald Reagan, Ron Paul, & the Fed: Q&A with
David Stockman on
YouTube, Reason.tv, January 2011
Fixing America’s Finances interview on On Point, May 2011
David Stockman on ‘The Great Deformation’ and Our Economic Doom,
Daniel Gross, The Daily Beast, April 1, 2013, interview
NY Times review by Peter T. Kilborn of a 1986 biography of David
"David Stockman's Contra Corner" His Personal Blog
U.S. House of Representatives
Member of the U.S. House of Representatives
from Michigan's 4th congressional district
Director of the Office of Management and Budget
Directors of the
United States Office of Management and Budget
D. W. Bell
D. E. Bell
Cabinet of President
Ronald Reagan (1981–89)
Secretary of State
Alexander M. Haig Jr. (1981–82)
George P. Shultz
George P. Shultz (1982–89)
Secretary of the Treasury
Donald T. Regan (1981–85)
James A. Baker (1985–88)
Nicholas F. Brady
Nicholas F. Brady (1988–89)
Secretary of Defense
Caspar W. Weinberger (1981–87)
Frank C. Carlucci (1987–89)
William French Smith
William French Smith (1981–85)
Edwin Meese (1985–88)
Richard L. Thornburgh (1988–89)
Secretary of the Interior
James G. Watt
James G. Watt (1981–83)
William P. Clark (1983–85)
Donald P. Hodel
Donald P. Hodel (1985–89)
Secretary of Agriculture
John R. Block (1981–86)
Richard E. Lyng (1986–89)
Secretary of Commerce
Malcolm Baldrige (1981–87)
C. William Verity (1987–89)
Secretary of Labor
Raymond J. Donovan
Raymond J. Donovan (1981–85)
William E. Brock III (1985–87)
Ann Dore McLaughlin (1987–89)
Secretary of Health and Human Services
Richard S. Schweiker (1981–83)
Margaret M. Heckler (1983–85)
Otis Bowen (1985–89)
Secretary of Housing and Urban Development
Samuel R. Pierce (1981–89)
Secretary of Transportation
Drew Lewis (1981–83)
Elizabeth H. Dole (1983–87)
James H. Burnley IV
James H. Burnley IV (1987–89)
Secretary of Energy
James B. Edwards
James B. Edwards (1981–83)
Donald P. Hodel
Donald P. Hodel (1983–85)
John S. Herrington
John S. Herrington (1985–89)
Secretary of Education
Terrel H. Bell (1981–85)
William J. Bennett (1985–88)
Lauro F. Cavazos (1988–89)
George H. W. Bush
George H. W. Bush (1981–89)
White House Chief of Staff
James A. Baker (1981–85)
Donald T. Regan (1985–87)
Howard H. Baker Jr. (1987–88)
Kenneth M. Duberstein (1988–89)
Director of the Office of
Management and Budget
David Stockman (1981–85)
James C. Miller III
James C. Miller III (1985–88)
Joseph R. Wright Jr. (1988–89)
Administrator of the Environmental Protection Agency
Anne M. Gorsuch (1981–83)
William D. Ruckelshaus (1983–85)
Lee M. Thomas
Lee M. Thomas (1985–89)
Director of Central Intelligence
William J. Casey
William J. Casey (1981–87)
William H. Webster
William H. Webster (1987–89)
Ambassador to the United Nations
Jeane Kirkpatrick (1981–85)
Vernon A. Walters
Vernon A. Walters (1985–89)
William E. Brock III (1981–85)
Clayton K. Yeutter (1985–89)
Chairperson of the Council of Economic Advisers
Murray L. Weidenbaum (1981–82)
Martin S. Feldstein (1982–84)
Beryl W. Sprinkel (1985–89)
Members of the U.S. House of Representatives from Michigan
A. S. Williams
J. L. Chipman
J. S. Chipman
A. B. Williams
D. E. Kildee
D. T. Kildee
D. E. Kildee
Harry W. Musselwhite
D. E. Kildee
J. Dingell Jr.
J. Dingell Sr.
J. Dingell Jr.
J. Dingell Jr.
J. Dingell Jr.
Private equity and venture capital investors
History of private equity and venture capital
Early history of private equity
Private equity in the 1980s
Private equity in the 1990s
Private equity in the 2000s
Private equity investors
ISNI: 0000 0000 8290 146X
BNF: cb12315723z (data)
US Congress: S000935