Koch
Debating the Success & Failure of Reaganomics
NCSS Thematic Strand:
· Time, Continuity, and Change[1]
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 quo[2]
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:
· Understand characteristics of the United States economy by examining basic economic indicators
· Demonstrate skills for historical research and analysis of primary sources by examining an excerpt from President Ronald Reagan’s January 20, 2981 inaugural address.
· Demonstrate skills for historical research and analysis by evaluating basic economic indicators from President Reagan’s term(s) in office.
· Demonstrate verbal and written skills by participating in a class debate and completing an essay.
Materials:
· 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.
· 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.
· 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.
· 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.
· 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.
· 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) / Interest Rate / Unemployment / IncomeWelfare / Social Security / Medicare / Budget
Deficit/Debt / Reaganomics / GDP / Productivity
“Supply Side Economics” / “Trickle-down Economics” / Government Spending
For each term, students should come to class prepared to present the following information.
· 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.
· 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:
· 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:
· 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.
· 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 / FailurePresident Ronal Reagan’s Inaugural Address
January 20, 1981
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.