Government's response to these recessions was to pump up the money supply and increase spending--while in the last 6 months of 1980, interest rates reached a staggering 21.5%. There were 8 million unemployed.
Late in 1981 we sank into the present
recession, largely because continued high interest rates hurt the auto industry and construction. And there was a drop in productivity, and the already high unemployment increased.
This time, however, things are different. We have an economic
program in place, completely different from the artificial quick fixes of the past. It calls for a reduction of the rate of increase in government spending, and a 3-year tax rate reduction designed to stimulate the economy and create jobs.
Higher taxes would not mean lower deficits. Raising taxes won't balance the budget; it will encourage more government spending and less private investment.
We must cut out more nonessential government spending and rout out more waste, and we will
continue our efforts to reduce the number of employees in the Federal work force by 75,000.
The budget plan I submit will realize major savings by dismantling the Departments of Energy & Education and by eliminating ineffective subsidies for business.
Together we have made a New Beginning, but we have only begun.
Source: Pres. Reagan's 1982 State of the Union message to Congress
Jan 26, 1982
On Health Care:
Waste & fraud permeate every area of Medicare & Medicaid
Today we face the absurd situation of a Federal budget with 3/4 of its expenditures routinely referred to as "uncontrollable." And a large part of this goes to entitlement programs.Committee after committee of this Congress has heard witness after
witness describe many of these programs as poorly administered and rife with waste and fraud. One example is Medicare and Medicaid--programs with worthy goals but whose costs have increased from $11 billion to almost $60 billion, more than
5 times as much, in just 10 years.
Waste and fraud are serious problems. Back in 1980 Federal investigators testified before one of your committees that "corruption has permeated virtually every area of the Medicare and Medicaid health care industry."
The time has come to control the uncontrollable. In August we made a start. I signed a bill to reduce the growth of these programs by $44 billion over the next 3 years while at the same time preserving essential services for the truly needy.
Source: Pres. Reagan's 1982 State of the Union message to Congress
Jan 26, 1982
On Budget & Economy:
Double-digit inflation is no longer a way of life
This recovery will bring with it a revival of economic confidence and spending for consumer items and capital goods--the stimulus we need to restart our stalled economic engines. The American people have already stepped up their rate of saving,
assuring that the funds needed to modernize our factories and improve our technology will once again flow to business and industry.
The inflationary expectations that led to a 21% interest prime rate and soaring mortgage rates 2 years ago are now reduced by almost half.
Lenders have started to realize that double-digit inflation is no longer a way of life. Interest rates have tumbled, paving the way for recovery in vital industries like housing and autos.
Source: Pres. Reagan's 1983 State of the Union message to Congress
Jan 25, 1983
On Budget & Economy:
Federal spending freeze: limited to rate of inflation
Let me outline a four-part plan to increase economic growth and reduce deficits:- I will recommend a Federal spending freeze. I know this is strong medicine, but so far, we have only cut the rate of increase in Federal spending. Taken as a whole,
the budget I'm proposing for the fiscal year will increase no more than the rate of inflation.
- I will ask the Congress to control the growth of the so-called uncontrollable spending programs. These are the automatic spending programs, such as food
stamps, that cannot be simply frozen and that have grown by over 400% since 1970.
- I will adjust our program to restore America's defenses by proposing $55 billion in defense savings over the next 5 years.
- Because we must ensure reduction and
eventual elimination of deficits, I will propose a standby tax, limited to no more than 1% of the GNP. It would last no more than 3 years, and it would start only if the Congress has first approved our spending freeze and budget control program.
Source: Pres. Reagan's 1983 State of the Union message to Congress
Jan 25, 1983
On Education:
Establish education savings accounts as college incentive
In 1983 we seek four major education goals: - a quality education initiative to encourage a substantial upgrading of math and science instruction through block grants to the States;
- establishment of education savings accounts that will give middle and lower-income families an incentive to save for their children's college education and, at the same time, encourage a real increase in savings for economic growth;
- passage of tuition tax credits for parents who want to send their children to private or religiously affiliated schools;
- a constitutional amendment to permit voluntary school prayer.
God should never have been expelled from America's classrooms in the first place.
Source: Pres. Reagan's 1983 State of the Union message to Congress
Jan 25, 1983
On Education:
Tuition tax credits: avoid double payment for private school
Our children come first, and that's why I established a bipartisan National Commission on Excellence in Education, to help us chart a commonsense course for better education. And already, communities are implementing the Commission's recommendations.
Schools are reporting progress in math and reading skills. But we must do more to restore discipline to schools; and we must encourage the teaching of new basics, reward teachers of merit, enforce tougher standards, and put our parents back in charge.
I will continue to press for tuition tax credits to expand opportunities for families and to soften the double payment for those paying public school taxes and private school tuition. Our proposal would target assistance to low- and middle-income
families. Just as more incentives are needed within our schools, greater competition is needed among our schools. Without standards and competition, there can be no champions, no records broken, no excellence in education or any other walk of life.
Source: Pres. Reagan's 1984 State of the Union message to Congress
Jan 25, 1984
On Families & Children:
Bedrock values: faith, family, work, neighborhood
The heart of America is strong; it's good and true. The cynics were wrong; America never was a sick society.
We're seeing rededication to bedrock values of faith, family, work, neighborhood, peace, and freedom--values that help bring us together as one people, from the youngest child to the most senior citizen.
Our greatest hope for the future is the minds and hearts of our people, especially our children. We can help them build tomorrow by strengthening our community of shared values. This must be our great goal.
For us, faith, work, family, neighborhood, freedom, and peace are not just words; they're expressions of what America means, definitions of what makes us a good and loving people. Families stand at the center of our society.
Source: Pres. Reagan's 1984 State of the Union message to Congress
Jan 25, 1984
On Tax Reform:
Index tax rates so inflation can't push to higher brackets
Together, we passed the first across-the-board tax reduction for everyone since the Kennedy tax cuts. Next year, tax rates will be indexed so inflation can't push people into higher brackets when they get cost-of-living pay raises. Government must never
again use inflation to profit at the people's expense.Today a working family earning $25,000 has $1,100 more in purchasing power than if tax and inflation rates were still at the 1980 levels. Real after-tax income increased 5% last year.
And economic deregulation of key industries like transportation has offered more choices to consumers and new chances for entrepreneurs and protecting safety. Tonight, we can report and be proud of one of the best recoveries in decades.
Send away the handwringers and the doubting Thomases. Hope is reborn for couples dreaming of owning homes and for risktakers with vision to create tomorrow's opportunities.
Source: Pres. Reagan's 1984 State of the Union message to Congress
Jan 25, 1984
On Technology:
Permanently manned space station within a decade
To build on America's pioneer spirit, [we should focus on] our next frontier: space. Nowhere do we so effectively demonstrate our technological leadership and ability to make life better on Earth. The Space Age is barely a quarter of a century old.
But already we've pushed civilization forward with our advances in science and technology. America has always been greatest when we dared to be great. We can reach for greatness again. We can follow our dreams to distant stars, living and working in
space for peaceful, economic, and scientific gain. Tonight, I am directing NASA to develop a permanently manned space station and to do it within a decade.
A space station will permit quantum leaps in our research in science, communications,
in metals, and in lifesaving medicines which could be manufactured only in space. We want our friends to help us meet these challenges and share in their benefits. NASA will invite other countries to participate.
Source: Pres. Reagan's 1984 State of the Union message to Congress
Jan 25, 1984
On Corporations:
Reduce corporate tax rates & keep incentives for capital
Let us move together with an historic reform of tax simplification for fairness and growth. We have cut tax rates by almost 25%, yet the tax system remains unfair and limits our potential for growth. Exclusions and exemptions cause similar incomes to be
taxed at different levels.One thing that tax reform will not be is a tax increase in disguise. We will not jeopardize the mortgage interest deduction that families need. We will reduce personal tax rates as low as possible by removing many tax
preferences. We will propose a top rate of no more than 35%, and possibly lower. And we will propose reducing corporate rates, while maintaining incentives for capital formation.
Tax simplification will be a giant step toward unleashing the tremendous
pent-up power of our economy. But a second American revolution must carry the promise of opportunity for all. It is time to liberate the spirit of enterprise in the most distressed areas of our country.
Source: Pres. Reagan's 1985 State of the Union message to Congress
Feb 6, 1985
On Crime:
Reform habeas corpus; more compassion for victims
Nothing has more threatened our sense of national well-being than the explosion of violent crime. One does not have to be attacked to be a victim. The woman who must run to her car after shopping at night is a victim, as is the tired cleaning woman who
can't ride a subway home without being afraid.We do not seek to violate the rights of defendants. But shouldn't we feel more compassion for the victims of crime than for those who commit crime? For the first time in 20 years, the crime index has
fallen 2 years in a row. We've convicted over 7,400 drug offenders and put them, as well as leaders of organized crime, behind bars in record numbers.
But we must do more. I urge permitting use of all reliable evidence that police officers acquire in
good faith. These proposals would also reform the habeas corpus laws and allow, in keeping with the will of the overwhelming majority of Americans, the use of the death penalty where necessary.
Source: Pres. Reagan's 1985 State of the Union message to Congress
Feb 6, 1985
On Families & Children:
As the family goes, so goes our civilization
Tonight America is stronger because of the values that we hold dear. We believe faith and freedom must be our guiding stars, for they show us truth, they make us brave, give us hope, and leave us wiser than we were. Our progress began not in Washington,
DC, but in the hearts of our families, communities, workplaces, and voluntary groups which, together, are unleashing the invincible spirit of one great nation under God.New freedom in our lives has planted the rich seeds for future success:-
For an America of wisdom that honors the family, knowing that as the family goes, so goes our civilization;
- For an America of vision that sees tomorrow's dreams in the learning and hard work we do today;
- For an America of courage whose service men
and women, even as we meet, proudly stand watch on the frontiers of freedom;
- For an America of compassion that opens its heart to those who cry out for help.
We have begun well. But it's only a beginning.
Source: Pres. Reagan's 1985 State of the Union message to Congress
Feb 6, 1985
On Budget & Economy:
Require the Federal Government to live within its means
Members of Congress, passage of Gramm-Rudman-Hollings gives us an historic opportunity to achieve what has eluded our national leadership for decades: forcing the Federal Government to live within its means.How often we read of a husband and wife both
working, struggling from paycheck to paycheck to raise a family, meet a mortgage, pay their taxes and bills. And yet some in Congress say taxes must be raised. Well, I'm sorry; they're asking the wrong people to tighten their belts.
It's time we reduce the Federal budget and left the family budget alone. We do not face large deficits because American families are undertaxed; we face those deficits because the Federal Government overspends.
The detailed budget that we will submit
will meet the Gramm-Rudman-Hollings target for deficit reductions, meet our commitment to ensure a strong national defense, meet our commitment to protect Social Security and the truly less fortunate, and, yes, meet our commitment to not raise taxes.
Source: Pres. Reagan's 1986 State of the Union message to Congress
Feb 4, 1986
On Families & Children:
Breakdown of the family causes "welfare culture"
As we work to make the American dream real for all, we must also look to the condition of America's families. Struggling parents today worry how they will provide their children the advantages that their parents gave them. In the welfare culture, the
breakdown of the family, the most basic support system, has reached crisis proportions: female and child poverty, child abandonment, horrible crimes, and deteriorating schools. After hundreds of billions of dollars in poverty programs, the plight of the
poor grows more painful. But the waste in dollars and cents pales before the most tragic loss: the sinful waste of human spirit and potential. We can ignore this terrible truth no longer.Tonight I am charging the White House Domestic Council to
present an evaluation of programs and a strategy for immediate action to meet the financial, educational, social, and safety concerns of poor families. The success of welfare should be judged by how many of its recipients become independent of welfare.
Source: Pres. Reagan's 1986 State of the Union message to Congress
Feb 4, 1986
On Drugs:
Defeat the scourge of drugs, starting with our children
Preparing for the future must begin, as always, with our children. We need to set for them new and more rigorous goals. We must demand more of ourselves and our children by raising literacy levels dramatically by the year 2000.
Our children should master the basic concepts of math and science, and let's insist that students not leave high school until they have studied and understood the basic documents of our national heritage.
There's one more thing we can't let up on: Let's redouble our personal efforts to provide for every child a safe and drug-free learning environment.
If our crusade against drugs succeeds with our children, we will defeat that scourge all over the country.
Source: Pres. Reagan's 1987 State of the Union message to Congress
Jan 27, 1987
On Homeland Security:
One major regret: I took a risk with Iran & it did not work
Though we've made much progress, I have one major regret: I took a risk with regard to our action in Iran [in the Iran-Contra affair]. It did not work, and for that I assume full responsibility. The goals were worthy. I do not believe it was wrong to try
to establish contacts with a country of strategic importance or to try to save lives. And certainly it was not wrong to try to secure freedom for our citizens held in barbaric captivity. But we did not achieve what we wished, and serious mistakes were
made in trying to do so. We will get to the bottom of this, and I will take whatever action is called for. But in debating the past, we must not deny ourselves the successes of the future. Let it never be said of this generation of Americans that we
became so obsessed with failure that we refused to take risks. Let there be no mistake about American policy: We will not sit idly by if our interests or our friends in the Middle East are threatened, nor will we yield to terrorist blackmail.
Source: Pres. Reagan's 1987 State of the Union message to Congress
Jan 27, 1987
On Abortion:
An unborn child is a living human being
I call America--a good nation, a moral people--to charitable but realistic consideration of the terrible cost of abortion on demand. To those who say this violates a woman's right to control of her own body: Can they deny that now medical evidence
confirms the unborn child is a living human being entitled to life, liberty, and the pursuit of happiness? Let us unite as a nation and protect the unborn with legislation that would stop all Federal funding for abortion and with a human life amendment
making, of course, an exception where the unborn child threatens the life of the mother. Our Judeo-Christian tradition recognizes the right of taking a life in self-defense. But with that one exception, let us look to those others in our land who cry out
for children to adopt. I pledge to you tonight I will work to remove barriers to adoption and extend full sharing in family life to millions of Americans so that children who need homes can be welcomed to families who want them and love them.
Source: Pres. Reagan's 1988 State of the Union message to Congress
Jan 25, 1988
On Drugs:
Drug use falling: our students are just saying no to drugs
Recently, we released our annual survey of what graduating high school seniors have to say about drugs. Cocaine use is declining, and marijuana use was the lowest since surveying began. We can be proud that our students are just saying no to drugs.
But let us remember what this menace requires: commitment from every part of America and every single American, a commitment to a drug-free America.
The war against drugs is a war of individual battles, a crusade with many heroes, including America's young people and also someone very special to me. She has helped so many of our young people to say no to drugs.
Nancy, much credit belongs to you, and I want to express to you your husband's pride and your country's thanks.
Source: Pres. Reagan's 1988 State of the Union message to Congress
Jan 25, 1988
On Education:
Replace obsession with dollars with commitment to quality
On education: We all know the sorry story of the sixties and seventies--soaring spending, plummeting test scores--and that hopeful trend of the eighties, when we replaced an obsession with dollars with a commitment to quality, and test scores started
back up. There's a lesson here that we all should write on the blackboard a hundred times: In a child's education, money can never take the place of basics like discipline, hard work, and, yes, homework.As a nation we do, of course, spend heavily on
education--more than we spend on defense. Opening up the teaching profession to all qualified candidates, merit pay--so that good teachers get A's as well as apples--and stronger curriculum--these imaginative reforms are making common sense the most
popular new kid in America's schools.
But the most important thing we can do is to reaffirm that control of our schools belongs to the States, local communities and, most of all, to the parents and teachers.
Source: Pres. Reagan's 1988 State of the Union message to Congress
Jan 25, 1988
On Free Trade:
Protectionism is destructionism: free, open, & fair trade
One of the greatest contributions the US can make to the world is to promote freedom as the key to economic growth. A creative, competitive America is the answer to a changing world, not trade wars that would close doors, create greater barriers, and
destroy millions of jobs. We should always remember: Protectionism is destructionism. America's jobs, America's growth, America's future depend on trade--trade that is free, open, and fair.This year, we have it within our power to take a major step
toward a growing global economy and an expanding cycle of prosperity: the historic free trade agreement negotiated between our country and Canada. And I can also tell you that we're determined to expand this concept, south as well as north.
Our goal must be a day when the free flow of trade, from the tip of Tierra del Fuego to the Arctic Circle, unites the people of the Western Hemisphere in a bond of mutually beneficial exchange.
Source: Pres. Reagan's 1988 State of the Union message to Congress
Jan 25, 1988
On War & Peace:
We support the Mujahidin, freedom fighters in Afghanistan
In Afghanistan, the freedom fighters are the key to peace. We support the Mujahidin. There can be no settlement unless all Soviet troops are removed and the Afghan people are allowed genuine self-determination. I have made my views on this matter known
to Gorbachev. But not just Afghanistan--yes, everywhere we see a swelling freedom tide across the world: freedom fighters rising up in Cambodia & Angola, fighting & dying for the same democratic liberties we hold sacred. Their cause is our cause: freedom
Source: Pres. Reagan's 1988 State of the Union message to Congress
Jan 25, 1988
Page last updated: Feb 24, 2019