Document A: Farewell Address

In 1989, after two terms in office, Ronald Reagan delivered this televised
farewell speech to the American people. In it, Reagan explained what he
saw as his legacy.

Well, back in 1980, when I was running for President, it was all so different.
Some pundits said our programs would result in catastrophe. Our views on
foreign affairs would cause war. Our plans for the economy would cause
inflation to soar and bring about economic collapse. I even remember one
highly respected economist saying, back in 1982, that “The engines of
economic growth have shut down here, and they're likely to stay that way
for years to come.” Well, he and the other opinion leaders were wrong. The
fact is, what they called “radical” was really “right.” What they called
“dangerous” was just “desperately needed.” . . .

Common sense told us that when you put a big tax on something, the
people will produce less of it. So, we cut the people's tax rates, and the
people produced more than ever before. The economy bloomed like a plant
that had been cut back and could now grow quicker and stronger. Our
economic program brought about the longest peacetime expansion in our
history: real family income up, the poverty rate down, entrepreneurship
booming, and an explosion in research and new technology. We're
exporting more than ever because American industry became more
competitive and at the same time, we summoned the national will to knock
down protectionist walls abroad instead of erecting them at home. . . .

I think we have stopped a lot of what needed stopping. And I hope we have
once again reminded people that man is not free unless government is
limited. There's a clear cause and effect here that is as neat and
predictable as a law of physics: As government expands, liberty contracts.

Source: Ronald Reagan, Farewell Address, January 11, 1989.

Vocabulary
pundit: a person who frequently gives their opinion to the public
entrepreneurship: starting new businesses to try to make a profit
protectionism: protecting a country’s businesses from foreign competition
 Document B: Coretta Scott King

The following is an excerpt of a speech by Coretta Scott King, the widow of

Dr. Martin Luther King, Jr. She delivered it in front of thousands of people
assembled in Washington, D.C. to commemorate the 20th anniversary of
the March on Washington for Jobs and Freedom, where Dr. King delivered
his I Have a Dream speech.

But even as we commemorate that great event, we commiserate in the

approaching third anniversary of an administration out of touch with all but
an elite group of Americans, an administration which has continually
attempted and often succeeded in turning back the clock on advances of
the last 20 years. . . .

Despite repeated denials from the president himself, [Reagan]

administration cuts have been targeted to families of moderate and low
income. . . . Half of American families—those with incomes of less than
$20,000 a year—have suffered 70 percent of President Reagan's budget
cuts. . . . many Americans are no better off today than they were four years
ago because Reagan's “unfair policies” have curtailed their freedom.

[Reagan] has sown the seeds of a twisted notion that rich can get richer by
making the poor poorer . . . and this is somehow good for America. . . . “As
a man sows, so shall he reap.” Ronald Reagan has sown poorly and he
will reap poorly.

Source: Coretta Scott King, address during the 20th Anniversary of the
March on Washington, August 28, 1983.

Vocabulary
commiserate: express or feel sympathy for
sow: plant
reap: harvest
 Document C: Representative Jack Kemp

Reagan’s economic policy aimed to remedy the economic crisis of

stagflation—high unemployment and high inflation. The following is an
excerpt of a speech given by Republican Congressman Jack Kemp, co-
director of the Congressional Joint Economic Committee, before Congress
on March 9, 2000. Kemp was a strong ally of Reagan, and co-authored the
Economic Recovery Tax Act in 1981.

In 1980, the US economy was in recession, the prime interest rate was
15 ½ percent, home mortgage interest rates were over 12 percent, the
unemployment rate was over 7 percent—almost 40 percent for black
teenagers—and inflation was running close to 14 percent a year. . . .

In a nutshell . . . the Reagan policy mix worked as advertised to slow the

growth in the supply of money while increasing the demand for it. As a
result, inflation collapsed, interest rates fell and economic growth revived.
The great American job machine got underway. It was morning in America,
and the prosperity that dawned in the 1980s continues on today. . . .

Reaganomics succeeded in defeating stagflation and winning lasting

prosperity.

Source: Jack Kemp, Speech before the Congress, March 9, 2000.

Vocabulary
recession: a period of economic decline
prime interest rate: the interest rate lenders charge borrowers with the best credit
home mortgage interest rate: the interest rate that borrowers pay for home loans
unemployment rate: the percentage of people who want to work but do not have
a job
inflation: a general increase in prices and a fall in the purchasing value of money
interest rate: the amount charged to borrow money
partisanship: bias; favoring a particular cause
stagflation: a term used to describe an economy that is stagnant (little growth)
and has high rates of inflation; the United States experienced stagflation in the
1970s.
 Document D: Representative Ronald Dellums

The following excerpt is from an article written Ron Dellums, a Democratic

Congressman from California. The article appeared in the newsletter of the
National Association of Social Workers in September 1982.

Having just suffered through the grim reality of the second-greatest peace
time budget deficit in U.S. history . . . the Reagan Administration now
confronts the specter of imminent fiscal and social disaster. . . . Gone is
the illusion of a balanced federal budget by fiscal year 1984. By the middle
of May 1982, the Congressional Budget Office had estimated that . . .
budget deficits would exceed $183 billion, $220 billion, and $240 billion
for fiscal years 1983, 1984, and 1985, respectively.

At the core of the fiscal problem is the growth of the military budget in
recent years. . . . In short, [the Reagan Administration] proposes to spend
more than $2.3 trillion . . . on the military in the next four years. This is more
than was spent on the military in the first thirty years of the Cold War! When
will this fiscal madness end?

In the context of the federal budget process, one person's greed is another
person's privation. The fiscal appeasement of the Pentagon has been
achieved at the expense of the poor and the powerless in society.

Source: Ron Dellums, “Reaganomics: Assault on human dignity and

survival,” Social Work, 1982.

Vocabulary
budget deficit: government spends more money than it collects in taxes
spectre: a possible unpleasant or dangerous occurrence
fiscal: economic
privation: hardship
appeasement: to make someone or something calm by giving something
Pentagon: the headquarters of American armed forces in Washington, D.C.
 Document E: Reagan Economic Data

This data was compiled by ProCon.org, an educational website.

ProCon.org aims to be non-partisan, which means that they don’t try to
favor one political perspective over another. Reagan took office in 1981
and left office in 1989.

1981 1989 Change

Gross domestic product (GDP) $3057 billion $5400 billion ­ 77%

National debt $995 billion $2868 billion ­ 188%

Maximum income tax rate 70% 28% ¯ 42%

Percent living in poverty 14% 13% ¯ 1%

Unemployment rate 7.6% 5.3% ¯ 2.3%

Vocabulary

gross domestic product: a measure of the size of a nation’s economy. If the GDP
goes up, that means the economy has grown. If it goes down, then the economy has
shrunk.

national debt: the amount of money that a nation owes others. If the debt grows, that
means that the nation is spending more money than it has collected in taxes. If it
shrinks, then it has collected more than it has spent.

maximum tax rate: the highest tax rate anyone pays. The maximum tax rate is
usually applied to those who make the most income. Those who make less income
pay a lower percentage of their income in taxes.

percent living in poverty: the percentage of people in the United States who are living
below the federal poverty line.

unemployment rate: the percentage of people in the United States who want to work
but do not have a job.
 Guiding Questions

Document A: Reagan’s Farewell Speech

1. (Sourcing) When was this speech given? Who was his audience?

The speech was delivered in 1989 by Ronald Reagan. It was a farewell to

the American people.

2. (Close reading) According to Reagan, what effects did economic policies have?

According to Reagan the economic policies he created led to taxes being cut, people made more
money than ever. The poverty rate decreased and entrepreneurship was booming.

3. (Close reading) What evidence does he give to support his claims?

In his speech Reagan says, "Common sense told us that when you put a big tax on
something, the people will produce less of it." When he cut the tax rates, the people
produced more than ever.

4. (Sourcing) Is Reagan’s speech a trustworthy source about the effects of

Reaganomics? Why?
Yes, because Reagan is the one who created Reaganomics. The information is coming
directly from him.

Document B: Coretta Scott King

1. (Sourcing) When was this speech given? Who was her audience?
This speech was given on the 20th anniversary of the March on Washington for Jobs and
Freedom. Coretta Scott King's audience was thousands of people assembled in
Washington.

2. (Close reading) According to King, what were the effects of Reagan’s economic
policies?
The effects of Reagan's economic policies were that low income families were targeted.
Americans who were lower class were treated poorly.

3. (Close reading) What evidence does King cite to support her claims?
King claims that Reagan's policies are 'unfair'. In her speech Reagan states,"Half of American
families—those with incomes of less than $20,000 a year—have suffered 70 percent of
President Reagan's budget cuts." This shows that Reagan's policies weren't beneficial to
everyone.
4. (Sourcing) Is King’s speech a trustworthy source about the effects of Reaganomics?
Why?
King's speech is trustworthy because she has evidence of the effects on the economy.
There is not any bias because King has no personal connection to Reagan.
Document C: Jack Kemp

1. (Sourcing) When was this speech given? Who was his audience?
Jack Kemp's speech was given on March 9th, 2000. The main audience of this speech
were the congress men and woman.

2. (Close reading) According to Kemp, what were the effects of Reagan’s economic
policies?
According to kemp Reaganomics effected the economy in a positive way. It helped to
decrease inflation and interest rates fell.

3. (Close reading) What evidence does Kemp cite to support his claims?
Jack kemp explains how the economy was in recession in 1980. Before Reaganomics
"The prime interest rate was 15 1/2 percent...and inflation was running close to 14
percent a year."

4. (Sourcing) Is Kemp’s speech a trustworthy source about the effects of

Reaganomics? Why?
Kemp's speech is a little biased considering that he is a close ally to Ronald Reagan. I
doubt that he would say anything negative in his speech about Reagan.

Document D: Ron Dellums

1. (Sourcing) When was this article written? Who was his audience?
The article was written in September, 1982. Ron Dellums audience was fellow politicians,
regular citizens, and social workers.

2. (Close reading) According to Dellums, what were the effects of Reagan’s economic
policies?
According to Dellums the policies had negative effects. Reagan's policies were very
expensive and led to more budget deficit in the U.S.

3. (Close reading) What evidence does Dellums cite to support his claims?
In the article it states, ". In short, [the Reagan Administration] proposes to spend more
than $2.3 trillion . . . on the military in the next four years."

4. (Sourcing) Is Dellum’s article a trustworthy source about the effects of

Reaganomics? Why?
Yes, because Dellum has valid evidence that back up his claims.
Document E: Economic Statistics

1. Do the data for each of the following support or undermine a claim that
Reaganomics was a success? Why?

Gross domestic product

During Reagan's term the Gross domestic product increased by 77%.This shows that
from 1981 through 1989 the economy had substantial growth.
National debt
The national debt increased from 995 billion (1981) to 2868 billion (1989) while Reagan was in
office. The change in debt increased by 188%. In area Reagan's policies were ineffective.
Maximum income tax rate
The maximum income tax rate decreased by 42% throughout in 8 years. This was beneficial to
those who made less or in poverty. That means that Reaganomics was a success.
Percent living in poverty
The amount of people living in poverty decreased by 1% during Reagan's term. Although this is not bad more could have
been done to help people in poverty. Overall it still proves that Reagan's policies were beneficial in this area.

Unemployment
The unemployment rate changed form 7.3% (1981) to 5.3% (1989). This means that
Reagan's policies helped many citizens find jobs, it was a success.

2. (Sourcing) Is this a trustworthy source of information? Why?

Procon.org is a trustworthy source because they aim to be non-partisan.

3. (Sourcing) ProCon.org collected this data from other sources. Does this affect
whether you trust the data? Why?
Yes, because wikipedia collects data from other sources and it is not always trustworthy.
 Graphic Organizer
Were Reaganomics good for the United States?

Use this space to write your main points for each side of the argument.

Reaganomics were good: List the 5 main points/evidence that support this side.

1) A :
From Document _____
Cutting down tax rates paved a way for people to make even more money than they did
before. Family's were able to build income, decreasing the poverty rate. "Common sense
told us that when you put a big tax on something, the people will produce less of it."

2) C :
From Document _____
Before Reagan started the economy was already in recession. he defeated stagflation in
the economy. "percent, the unemployment rate was over 7 percent—almost 40 percent
for black teenagers—and inflation was running close to 14 percent a year.

3) C :
From Document _____
The economy was in recession in 1980 because of high interest rates. It was difficult to
get a house and a job.

4) E :
From Document _____
Less people were living in poverty.

Reaganomics were not good: List the 5 main points/evidence that support this side.

1) E :
From Document _____
National debt was increased because the policies were exspensive.

2) D :
From Document _____
Reagan increased the military budget by trillions. Social programs were cut out. (ebt,
housing, education.)

3) B :
From Document _____
Families of low to moderate income were targeted. Tax cuts benefited the wealthy, it
caused increased inequality.

4) D :
From Document _____
He created more budget defecit.
 Coming to Consensus

Use the space below to outline your group’s agreement. Your agreement should be
thorough, detailed, and address evidence and arguments from both sides.
Were Reaganomics good for the United States?

During the 1970's through the 1980's Reaganomics was very effective. It was created in
response to the 1970's stagflation. The main focus was to eliminate stagflation and
Reaganomics did just that. It started with cutting tax rates in America. In his farewell speech
Reagan states, "So, we cut the people's tax rates, and the
people produced more than ever before." Following this policy the economy started to get
better and better. On the other hand, the tax cuts benefited those who were wealthy and
already had money. It created a barrier of inequality for people living in different conditions.
Coretta Scott King makes a claim that," families—those with incomes of less than $20,000 a
year—have suffered 70 percent of President Reagan's budget cuts." Not everyone benefited
from tax cuts even if majority of U.S citizens made more income during this time. According to
the data gathered by ProCon.org, the Gross domestic product increased by 77%. There was
no doubt that during his presidency the economy had substantial growth. However, to
achieve this outcome, money was ran through, large amounts of it. The article Ronald
Dellums wrote in 1982 introduces a different view on Reagan's policies. In the article he
states, "In short, [the Reagan Administration] proposes to spend more than $2.3 trillion on the
military in the next four years." The military budget was increased by a big margin while social
programs lacked funding. Programs like food stamps, education, and housing were looked
over. I believe Reaganomics was good for the United States specifically to stop inflation.
While there are many other good outcomes like economic growth and unemployment rates it
wasn't major in all areas that the economy needed growth in like federal deficit, inequality,
and social programs.