The Reagan Revolution
Reduce, Reshape, Recommit

http://www.livingroomcandidate.org/commercials/1980

CSPAN Video of Reagan First Inaugural 
January 20, 1981

"In this present crisis, government is not the solution to our problems; government is the problem."
 Ronald Reagan, January 20, 1981

During his Presidency, Reagan pursued policies that reflected his personal belief in individual freedom, brought changes domestically, both to the U.S. economy and expanded military, and contributed to the end of the Cold War.Termed the Reagan Revolution, his presidency would reinvigorate American morale and reduce the people's reliance upon government. As president, Reagan kept a series of diaries in which he commented on daily occurrences of his presidency and his views on the issues of the day. (Interactive Timeline of Reagan's Life)

To date, Reagan is the oldest man elected to the office of the presidency (at 69). In his first inaugural address on January 20, 1981, which Reagan himself wrote, he addressed the country's economic malaise arguing: "In this present crisis, government is not the solution to our problems; government is the problem."  The Reagan Presidency began in a dramatic manner; as Reagan was giving his inaugural address, 52 U.S. hostages, held by Iran for 444 days were set free.

WHAT WERE THE COMPONENTS OF THE REAGAN REVOLUTION?  

Restore America’s strength, reshape the federal government, and bring prosperity to the nation. 

Even though Reagan was nearly killed by an assassin's bullet less than 2 months in office, he remained positive and optimistic about America. His sense of humor never abandoned him, even as he was being rushed to the hospital. for surgery, his wife Nancy asked how he was and he uttered "Honey, I forgot to duck"!...

RESTORE  America’s strength!!

REDUCE the PUNITIVE TAX BURDEN  (Reaganomics Cartoon)

Huge tax cuts for wealthy, gov’t has huge budget deficits pay for weapons/economy – but OK

It started with taxes, and his fundamental belief that government had become less the solution, and more the problem in America.

Reagan's economic theory, called supply-side economics, This approach, unlike the approach of John Maynard Keynes, was founded on the [ Milton Friedman's ] principle that tax reductions would stimulate the economy by providing incentives for investment, thereby generating so much growth [ jobs ] and thus new and more taxable income that the gov't would actually gain revenue.

Economic Recovery Tax Act of 1981 laid down the foundation for many of his programs. Examples: when he took office unemployment was at a near historic high of 10.7%- 8 years later it was an incredible 5.4%! anytime unemployment is under 6% the economy is measured as healthy.

Inflation under Carter had skyrocketed to nearly 14%, by the time Reagan left office in 1988 it was 4.4%! Reagan often said that inflation was the 'silent thief' that hurt Americans. During the decade wealth and financial success were not only not something to strive for but were positively celebrated.

RESHAPE THE ROLE OF GOVERNMENT (Reagan Defense Dance)

 It is my intention to curb the size and influence of the Federal establishment and to demand recognition of the distinction between the powers granted to the Federal Government and those reserved to the States or to the people. All of us need to be reminded that the Federal Government did not create the States; the States created the Federal Government.

In a sense the classic conservative economic principles of Laissez-faire were back with a 1980s look. Gov't should keep its" hands off " the economy as much as possible. De-regulation of rules and laws that hampered business growth was a priority. The business of business was the business of business-not Uncle Sam according to the Reagan economists.

RECOMMIT TO A MASSIVE DEFENSE BUILD UP

Defense buildup – method of bankrupting Soviet Union – can’t keep up with us, eventually kills them

Money taken from school lunches for huge weapons programs – military industrial complex