Koch
Debating the Success & Failure of Reaganomics
NCSS Thematic Strand:
 Time, Continuity, and Change1
Iowa Core Curriculum Alignment:
 Understand how and why people create, maintain or change systems of power, authority and
governance
 Understand the role of individuals and groups within a society as promoters of change or the
status quo2
Grade Level: 9-12
Class Periods Required: Three 54-minute class periods
Purpose, Background and Context
In the late 1970s, America was swinging toward conservative values. Many people were tired of the protests
and extreme behaviors of the 1960s. Many others felt the government had grown too large and was spending
money on social problems that could not be solved. President Ronald Reagan’s election to the presidency in
1980 has been considered one of the most significant of the 20th century. Promising an “Era of National
Renewal,” President Reagan assumed the presidency with the commitment of reversing the nation’s economic
woes and the promise to bring back old-fashioned values. Reagan believed in supply-side economics, which
was a far different approach compared to his predecessors. Since the 1930’s, the Presidents who came before
Reagan believed higher taxes would support government spending. Supply-side economics called for reducing
taxes on the wealthy and large corporations which would result in savings and investing. The wealthy and
businesses would use the money invested to create jobs and the result would be a large supply of goods to buy.
Regan believed with lower taxes, Americans would have more to spend. However, lower taxes also meant less
money flowing into the Treasury. To make up for this difference, Reagan cut spending on programs such as
welfare and Medicare. His economic policy, known as “Reaganomics,” has continued to evoke debate and
controversy over its success. This lesson explores the extension to which Reaganomics can be considered a
success as solving the economic hardships of the later 1970s and early 1980s.
Goals/Objectives/Student Outcomes/Performance Expectations:
Students will:
1
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Understand characteristics of the United States economy by examining basic economic indicators
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Demonstrate skills for historical research and analysis of primary sources by examining an
excerpt from President Ronald Reagan’s January 20, 2981 inaugural address.
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Demonstrate skills for historical research and analysis by evaluating basic economic indicators
from President Reagan’s term(s) in office.
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Demonstrate verbal and written skills by participating in a class debate and completing an essay.
National Council for Social Studies, Expectations of Excellence: Curriculum Standards for the Social Studies (Washington D.C.: National Council for
the Social Studies, 1994). ISBN 0-87986-065-0
2 Iowa Department of Education: Iowa Core Curriculum-History. http://www.corecurriculum.iowa.gove/Discipline.aspx?C=Social+Studies&D=History
Materials:
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The students should have access to a computer with internet capabilities for technology links.
The teacher should provide each student a copy of Reagan’s Inaugural Address.
The teacher should provide the wordle document of Reagan’s Inaugural Address.
For each group, provide multiple copies of each source: 1980 election map, Inflation chart, Government
Debt/Deficit Chart, Government Spending Chart, Unemployment Chart, GDP Chart
The teacher should provide for each student a copy of the “Reaganomics Debate” worksheet.
Day 1
Procedure 1:
Have students respond to the following questions.
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Who is the current governor of Wisconsin?
Who is the current governor of California?
Do you think there is anyone in Wisconsin who doesn’t know their own governor’s name but knows the
governor of California? Why?
Share responses as a class. Wait for a response that pertains to Arnold Schwarzenegger’s film career. Inform
students that there has been discussion about amending the Constitution to allow Schwarzenegger to potentially
run for president.
Have students respond to the following questions.
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Do you feel Hollywood actors would make good presidents? Why/Why not?
Do you know of any former presidents who were actors prior?
Share responses as a class. If applicable, inform students that Ronald Reagan was the 40th President of the
United States and a former Hollywood actor. Show students the 1980 election results. Ask students to respond
to the following questions.
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Who won the popular vote? By what margin?
What may have contributed to the large gap between Ronald Reagan and Jimmy Carter?
In order to respond to question two, students should draw upon previous knowledge regarding the problems of
Carter’s presidency. Next, have students respond to the following questions.
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What do you know about Ronald Reagan (other than he was a Hollywood actor)?
How do you evaluate the success or failure of a president?
Inform students that they will be evaluating the success of Reagan’s presidency in terms of his economic
agenda. Eventually, students will be required to answer the question, “To what extent should President Ronald
Reagan and ‘Reaganomics’ be considered a success in its attempts to reverse the economic recession of the later
1970s and early 1980s?”
Procedure 2:
Pass out the text of Ronald Reagan’s inaugural address speech that he had given on January 20, 1981. Play a
recording of the speech. Ask students to read the document individually and answer the following questions.
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Count the number of times Reagan used the words “economy” and “government.” Why do you think
these words are repeated so many times?
After finishing listening to the speech, display the wordle document. Ask students again, if the words used
most often are the most important? Students should see that the word “government” is used most often. Ask
students to list any other words that stand out to them. Ask them what inferences they can make about the
Reaganomics based on this document.
Procedure 3:
Divide students into mixed ability groups of 2-3 (depending on class sizes). Inform students that they will be
assigned one of the following terms..
Inflation (CPI)
Welfare
Deficit/Debt
“Supply Side
Economics”
Interest Rate
Social Security
Reaganomics
“Trickle-down
Economics”
Unemployment
Medicare
GDP
Government Spending
Income
Budget
Productivity
For each term, students should come to class prepared to present the following information.
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Definition
Definition paraphrased
An analogy that conveys an adequate understanding of the term/concept.
Day 2
Procedure 1:
Begin class by having students present their definitions, paraphrases, and analogies to the class. Again, inform
students that they will need to understand the concepts in order to complete the next phase of the lesson.
Procedure 2:
Redistribute Reagan’s Inaugural Address. As they read, students should focus on the following questions.
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What is the “affliction of great proportions,” President Reagan mentions? Support your explanation
using specific examples from the speech.
What does Reagan say will result in “tremendous social, cultural, political, and economic upheavals?”
Explain what is meant by the following: “In this present crisis, government is not the solution to our
problems; government is the problem?”
What does Reagan state his objective is?
According to the President, how must the Federal Government operate to accomplish this objective?
Procedure 3:
After reviewing the answers to the above questions, discuss and make clear what the specific goals of
Reaganomics were. These goals should include:
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Lowering Inflation (CPI)
Reducing Deficit Spending/Government Debt
Decreasing Government Spending
Reducing Unemployment
Raising GDP
Inform students that they will be analyzing the success of Reaganomics based upon these five economic
indicators. Distribute the “Reaganomics Debate” worksheet. Inform students that they are to complete this
assignment in preparation for an in-class debate. Students will analyze economic tables and graphs to
determine if there was any significant change to the any of the indicators and if it is reasonable to conclude that
the change was due to Reagan’s economic policies and initiatives. Students may work with a partner but it is
important that they have the same views regarding whether or not Reaganomics was a success or a failure.
Day 3
Procedure 1
Distribute copies of the Inflation Chart, Government Debt/Deficit Chart, Government Spending Chart,
Unemployment Chart, and GDP Chart. Inform students that they will only be given one in class workday to
prepare for the debate.
Day 4
Procedure 1
Divide students into two groups; those who believe Reaganomics was a failure from those who perceive it as a
success. Provide each team adequate time to prepare their argument. The time allotted should allow them
adequate time to compile their date and establish their main points.
Procedure 2
Allow each side to present their arguments. Each side should also be given adequate time to provide a rebuttal.
The teacher should play the role as a mediator.
Procedure 3
After finishing the in-class debate, students should have a better understanding of President Reagan’s economic
policy. Using specific historical data and research, students should be able to adequately respond to the
question “To what extent should President Ronald Reagan and ‘Reaganomics’ be considered a success in it
attempts to reverse the economic recession of the later 1970s and early 1980s?”
Extensions
Reaganomics cut spending on programs such as welfare, Medicare, and school lunches. Reagan also removed
government limits on the automobile industry, airlines, and pollution. President Reagan also opposed two
major Supreme Court rulings and named conservative judges to the Supreme Court. Students could investigate
how Reagan’s actions did not benefit all Americans equally.
Students could also compare the role of the government during the presidencies of Reagan and Obama. Begin
the discussion by analyzing the political cartoon. Next, have students’ list examples of how Obama has
increased the role of the Federal Government. Students could be responsible for finding a current event article
that illustrates how the role of the Federal Government is increasing.
Assessment of Outcomes:
Students will:
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List observations and inferences based upon reading maps and graphs concerning Reagan’s
economic policy known as “Reaganomics”. From these observations, students will formulate an
debating the success or failure of this policy.
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Facilitate both small group and whole class discussion about Reaganomics referring to the sources
Reaganomics Debate
Name:__________________
“These United States are confronted with an economic affliction of great proportions. We suffer from the
longest and one of the worst sustained inflations in our national history…in this present crisis, government is
not the solution to our problem; government is the problem…It is my intention to curb the size and influence of
the Federal establishment…In the days ahead I will propose removing the roadblocks that have slowed our
economy and reduced productivity…It is time to reawaken this industrial giant, to get government back within
its means, and to lighten our punitive tax burden.”
-Ronald Reagan, “Inaugural Address,” January 20, 1981
Directions:
President Reagan’s economic program was considered a radical departure from the programs of
all the previous administrations since the New Deal. For the in-class debate, use the organizer
below to guide you in determining whether Reaganomics was a success or failure. You must use
specific historical facts derived from the economic indicators that were researched in class.
Success
President Ronal Reagan’s Inaugural Address
January 20, 1981
Failure
To a few of us here today this is a solemn and most momentous occasion, and yet in the history of our nation it is a
commonplace occurrence. The orderly transfer of authority as called for in the Constitution routinely takes place, as it
has for almost two centuries, and few of us stop to think how unique we really are. In the eyes of many in the world,
this every-4-year ceremony we accept as normal is nothing less than a miracle.
Mr. President, I want our fellow citizens to know how much you did to carry on this tradition. By your gracious
cooperation in the transition process, you have shown a watching world that we are a united people pledged to
maintaining a political system which guarantees individual liberty to a greater degree than any other, and I thank you
and your people for all your help in maintaining the continuity which is the bulwark of our Republic.
The business of our nation goes forward. These United States are confronted with an economic affliction of great
proportions. We suffer from the longest and one of the worst sustained inflations in our national history. It distorts our
economic decisions, penalizes thrift, and crushes the struggling young and the fixed-income elderly alike. It threatens
to shatter the lives of millions of our people.
Idle industries have cast workers into unemployment, human misery, and personal indignity. Those who do work are
denied a fair return for their labor by a tax system which penalizes successful achievement and keeps us from
maintaining full productivity.
But great as our tax burden is, it has not kept pace with public spending. For decades we have piled deficit upon
deficit, mortgaging our future and our children's future for the temporary convenience of the present. To continue this
long trend is to guarantee tremendous social, cultural, political, and economic upheavals.
You and I, as individuals, can, by borrowing, live beyond our means, but for only a limited period of time. Why, then,
should we think that collectively, as a nation, we're not bound by that same limitation? We must act today in order to
preserve tomorrow. And let there be no misunderstanding: We are going to begin to act, beginning today.
The economic ills we suffer have come upon us over several decades. They will not go away in days, weeks, or months,
but they will go away. They will go away because we as Americans have the capacity now, as we've had in the past, to
do whatever needs to be done to preserve this last and greatest bastion of freedom.
In this present crisis, government is not the solution to our problem; government is the problem. From time to time
we've been tempted to believe that society has become too complex to be managed by self-rule, that government by
an elite group is superior to government for, by, and of the people. Well, if no one among us is capable of governing
himself, then who among us has the capacity to govern someone else? All of us together, in and out of government,
must bear the burden. The solutions we seek must be equitable, with no one group singled out to pay a higher price.
We hear much of special interest groups. Well, our concern must be for a special interest group that has been too long
neglected. It knows no sectional boundaries or ethnic and racial divisions, and it crosses political party lines. It is made
up of men and women who raise our food, patrol our streets, man our mines and factories, teach our children, keep
our homes, and heal us when we're sick -- professionals, industrialists, shopkeepers, clerks, cabbies, and truckdrivers.
They are, in short, ``We the people,'' this breed called Americans.
Well, this administration's objective will be a healthy, vigorous, growing economy that provides equal opportunities for
all Americans with no barriers born of bigotry or discrimination. Putting America back to work means putting all
Americans back to work. Ending inflation means freeing all Americans from the terror of runaway living costs. All must
share in the productive work of this ``new beginning,'' and all must share in the bounty of a revived economy. With the
idealism and fair play which are the core of our system and our strength, we can have a strong and prosperous
America, at peace with itself and the world.
So, as we begin, let us take inventory. We are a nation that has a government -- not the other way around. And this
makes us special among the nations of the Earth. Our government has no power except that granted it by the people. It
is time to check and reverse the growth of government, which shows signs of having grown beyond the consent of the
governed.
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.
Now, so there will be no misunderstanding, it's not my intention to do away with government. It is rather to make it
work -- work with us, not over us; to stand by our side, not ride on our back. Government can and must provide
opportunity, not smother it; foster productivity, not stifle it.
If we look to the answer as to why for so many years we achieved so much, prospered as no other people on Earth, it
was because here in this land we unleashed the energy and individual genius of man to a greater extent than has ever
been done before. Freedom and the dignity of the individual have been more available and assured here than in any
other place on Earth. The price for this freedom at times has been high, but we have never been unwilling to pay that
price.
It is no coincidence that our present troubles parallel and are proportionate to the intervention and intrusion in our
lives that result from unnecessary and excessive growth of government. It is time for us to realize that we're too great
a nation to limit ourselves to small dreams. We're not, as some would have us believe, doomed to an inevitable
decline. I do not believe in a fate that will fall on us no matter what we do. I do believe in a fate that will fall on us if
we do nothing. So, with all the creative energy at our command, let us begin an era of national renewal. Let us renew
our determination, our courage, and our strength. And let us renew our faith and our hope.
We have every right to dream heroic dreams. Those who say that we're in a time when there are not heroes, they just
don't know where to look. You can see heroes every day going in and out of factory gates. Others, a handful in number,
produce enough food to feed all of us and then the world beyond. You meet heroes across a counter, and they're on
both sides of that counter. There are entrepreneurs with faith in themselves and faith in an idea who create new jobs,
new wealth and opportunity. They're individuals and families whose taxes support the government and whose voluntary
gifts support church, charity, culture, art, and education. Their patriotism is quiet, but deep. Their values sustain our
national life.
Now, I have used the words ``they'' and ``their'' in speaking of these heroes. I could say ``you'' and ``your,'' because
I'm addressing the heroes of whom I speak -- you, the citizens of this blessed land. Your dreams, your hopes, your goals
are going to be the dreams, the hopes, and the goals of this administration, so help me God.
We shall reflect the compassion that is so much a part of your makeup. How can we love our country and not love our
countrymen; and loving them, reach out a hand when they fall, heal them when they're sick, and provide opportunity
to make them self-sufficient so they will be equal in fact and not just in theory?
Can we solve the problems confronting us? Well, the answer is an unequivocal and emphatic ``yes.'' To paraphrase
Winston Churchill, I did not take the oath I've just taken with the intention of presiding over the dissolution of the
world's strongest economy.
In the days ahead I will propose removing the roadblocks that have slowed our economy and reduced productivity.
Steps will be taken aimed at restoring the balance between the various levels of government. Progress may be slow,
measured in inches and feet, not miles, but we will progress. It is time to reawaken this industrial giant, to get
government back within its means, and to lighten our punitive tax burden. And these will be our first priorities, and on
these principles there will be no compromise.
On the eve of our struggle for independence a man who might have been one of the greatest among the Founding
Fathers, Dr. Joseph Warren, president of the Massachusetts Congress, said to his fellow Americans, "Our country is in
danger, but not to be despaired of . . . . On you depend the fortunes of America. You are to decide the important
questions upon which rests the happiness and the liberty of millions yet unborn. Act worthy of yourselves."
Well, I believe we, the Americans of today, are ready to act worthy of ourselves, ready to do what must be done to
ensure happiness and liberty for ourselves, our children, and our children's children. And as we renew ourselves here in
our own land, we will be seen as having greater strength throughout the world. We will again be the exemplar of
freedom and a beacon of hope for those who do not now have freedom.
To those neighbors and allies who share our freedom, we will strengthen our historic ties and assure them of our
support and firm commitment. We will match loyalty with loyalty. We will strive for mutually beneficial relations. We
will not use our friendship to impose on their sovereignty, for our own sovereignty is not for sale.
As for the enemies of freedom, those who are potential adversaries, they will be reminded that peace is the highest
aspiration of the American people. We will negotiate for it, sacrifice for it; we will not surrender for it, now or ever.
Our forbearance should never be misunderstood. Our reluctance for conflict should not be misjudged as a failure of
will. When action is required to preserve our national security, we will act. We will maintain sufficient strength to
prevail if need be, knowing that if we do so we have the best chance of never having to use that strength.
Above all, we must realize that no arsenal or no weapon in the arsenals of the world is so formidable as the will and
moral courage of free men and women. It is a weapon our adversaries in today's world do not have. It is a weapon that
we as Americans do have. Let that be understood by those who practice terrorism and prey upon their neighbors.
I'm told that tens of thousands of prayer meetings are being held on this day, and for that I'm deeply grateful. We are a
nation under God, and I believe God intended for us to be free. It would be fitting and good, I think, if on each
Inaugural Day in future years it should be declared a day of prayer.
This is the first time in our history that this ceremony has been held, as you've been told, on this West Front of the
Capitol. Standing here, one faces a magnificent vista, opening up on this city's special beauty and history. At the end of
this open mall are those shrines to the giants on whose shoulders we stand.
Directly in front of me, the monument to a monumental man, George Washington, father of our country. A man of
humility who came to greatness reluctantly. He led America out of revolutionary victory into infant nationhood. Off to
one side, the stately memorial to Thomas Jefferson. The Declaration of Independence flames with his eloquence. And
then, beyond the Reflecting Pool, the dignified columns of the Lincoln Memorial. Whoever would understand in his
heart the meaning of America will find it in the life of Abraham Lincoln.
Beyond those monuments to heroism is the Potomac River, and on the far shore the sloping hills of Arlington National
Cemetery, with its row upon row of simple white markers bearing crosses or Stars of David. They add up to only a tiny
fraction of the price that has been paid for our freedom.
Each one of those markers is a monument to the kind of hero I spoke of earlier. Their lives ended in places called
Belleau Wood, The Argonne, Omaha Beach, Salerno, and halfway around the world on Guadalcanal, Tarawa, Pork Chop
Hill, the Chosin Reservoir, and in a hundred rice paddies and jungles of a place called Vietnam.
Under one such marker lies a young man, Martin Treptow, who left his job in a small town barbershop in 1917 to go to
France with the famed Rainbow Division. There, on the western front, he was killed trying to carry a message between
battalions under heavy artillery fire.
We're told that on his body was found a diary. On the flyleaf under the heading, ``My Pledge,'' he had written these
words: ``America must win this war. Therefore I will work, I will save, I will sacrifice, I will endure, I will fight
cheerfully and do my utmost, as if the issue of the whole struggle depended on me alone.''
The crisis we are facing today does not require of us the kind of sacrifice that Martin Treptow and so many thousands
of others were called upon to make. It does require, however, our best effort and our willingness to believe in
ourselves and to believe in our capacity to perform great deeds, to believe that together with God's help we can and
will resolve the problems which now confront us.
And after all, why shouldn't we believe that? We are Americans. 3
1980 Election Results4
3
4
http://www.reagan.utexas.edu/archives/speeches/1981/12081a.htm
http://www.presidency.ucsb.edu/showelection.php?year=1980
Inflation5
5
http://proft.50megs.com/inflation.html
Government Spending Chart6
6
http://www.cals.ncsu.edu/course/are012/lecture/lectur3/sld008.htm
Unemployment Chart7
7
http://www.csus.edu/indiv/j/jensena/sfp/us/rec_unem.htm
Government Debt8
8
http://www.publicdebt.treas.gov/opd/opdhisto4.htm
Gross Domestic Product Chart9
9
http://eh.net/hmit/gdp
Political Cartoon10
10
www.cagle.com