THE 1980S

THE RECESSION OF 1982

• This was the worst of the post World War II recessions.
• Unemployment increased.

REAGONOMICS

• Reduce growth of government spending
• Reduce marginal tax rates on income
• Reduce regulation
• Reduce inflation by controlling growth of money supply
• 25% tax cuts

STOCK MARKET CRASH OF 1987

• The Dow dropped nearly 50%
• The nation was in a panic.

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INTERVIEW SUMMARIES

• Q: Do you remember the recession of 1980?
• A: Yes. I was 25. My company's business slowed down.
• Q: How did you feel about Reagonomics?
• A: It was a good thing, and decreased control and size of the government.
• He was anti-union and pro business. He changed tax codes, helped companies,

INTERVIEW sUMMARIES

• Q: How did it positively influence the enconomy?
• A: The overall expenditures stayed the same. From the $ he saved
• in the program, he used for military buildup.
• Q: Were you personally affected by the tax cuts?
• A: Yes. I was able to save more money.

INTERVIEW SUMMARIES

• It was everywhere. On the radio, news, and TV.
• All presidents introduced new programs.
• Tax cuts helped the economy.
• They didn't affect me because I was too young.
• Stock prices went down and the rich lost millions. (Black Monday)

SOURCES

• http://www.sjsu.edu/faculty/watkins/rec1980.htm
• http://www.loc.gov/rr/business/businesshistory/October/blackmonday.html
• http://www.ushistory.org/us/59b.asp