Overview
Ronald Reagan's First Inaugural Address (1981) identified economic crisis and excessive government as key challenges, advocating for reduced federal power, individual freedom, and national renewal.
Economic Crisis and Causes
- America faces severe inflation, unemployment, and economic hardship, affecting young people and the elderly.
- Inflation and high taxes distort economic decisions and penalize thrift and achievement.
- Public spending has outpaced tax revenue, causing repeated deficits and risking future stability.
- Reagan argues that national borrowing must be limited, just as for individuals.
Role of Government
- Reagan states: "Government is not the solution to our problem; government is the problem."
- He critiques the idea that society has become too complex for self-rule and warns against elite government.
- Solutions should be equitable, without burdening any single group excessively.
Limits and Powers of Government
- The nation has a government, not the other way around; government power comes from the people.
- Reagan intends to curb federal government size and influence, emphasizing state and individual rights.
- He reminds that the federal government was created by the states, not vice versa.
American Values and National Renewal
- Past American success attributed to unleashed energy and individual freedom.
- Reagan links present difficulties to unnecessary government intervention.
- He calls for an era of national renewal, optimism, and self-determination.
- Renewed American strength will serve as an example and beacon of hope worldwide.
Key Terms & Definitions
- Inflation — Rising prices that decrease the purchasing power of money.
- Deficit — The amount by which government spending exceeds revenue.
- Federal establishment — The institutions and bureaucracy of the national government.
- Self-rule — Governance by the people rather than elites or authorities.
Action Items / Next Steps
- Review notes on Reagan’s political philosophy and the context of early 1980s economic issues.
- Prepare examples of how Reagan’s views shaped subsequent U.S. economic and governmental policies.