11112 Discuss the significant domestic policy speeches of Truman Eisenhower

11112 discuss the significant domestic policy

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11.11.2 Discuss the significant domestic policy speeches of Truman, Eisenhower, Kennedy, Johnson, Nixon, Carter, Reagan, Bush, and Clinton (e.g., with regard to education, civil rights, eco- nomic policy, environmental policy). REP 1 Students distinguish valid arguments from fallacious arguments in historical interpretations. HI 2 Students recognize the complexity of historical causes and effects, includ- ing the limitations on determining cause and effect. HI 4 Students understand the meaning, implication, and impact of historical events and recognize that events could have taken other directions. HI 6 Students conduct cost-benefit analyses and apply basic economic indicators to analyze the aggregate economic behavior of the U.S. economy.
BUDGET CUTS Reagan’s strategy for downsizing the federal government included deep cuts in government spending on social programs. Yet his cuts did not affect all segments of the population equally. Entitlement programs that benefited the middle class, such as Social Security, Medicare, and veterans’ pensions, remained intact. On the other hand, Congress slashed by 10 percent the budget for programs that benefited other groups: urban mass transit, food stamps, welfare benefits, job training, Medicaid, school lunches, and student loans. TAX CUTS “Reaganomics” rested heavily upon supply-side economics. This theory held that if people paid fewer taxes, they would save more money. Banks could then loan that money to businesses, which could invest the money in resources to improve productivity. The supply of goods then would increase, driving down prices. At Reagan’s urging, Congress lowered income taxes by 25 percent over a three-year period. Reagan based his ideas for supply-side econom- ics on the work of economists such as George Gilder and Arthur Laffer. A P ERSONAL V OICE ARTHUR LAFFER The most debilitating act a government can perpetrate on its citizens is to adopt policies that destroy the economy’s production base, for it is the production base that generates any prosperity to be found in the society. U.S. tax policies over the last decade have had the effect of damaging this base by removing many of the incentives to economic advancement. It is necessary to restore those incentives if we are to cure our economic palsy. —The Economics of the Tax Revolt: A Reader INCREASED DEFENSE SPENDING At the same time, Reagan authorized increases in military spending that more than offset cuts in social programs. Between 1981 and 1984, the Defense Department budget almost doubled. Indeed, the president revived two controversial weapons systems—the MX missile and the B-1 bomber. In 1983, Reagan asked the country’s scientists to develop a defense system that would keep Americans safe from enemy missiles. Officially called the Strategic Defense Initiative, or SDI, the sys- tem quickly became known as Star Wars, after the title of a popular movie. The Defense Department estimated that the system would cost trillions of dollars.

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