Portraits in History: Ronald Reagan
Jason Huffman
Looking at the current cultural and economic conditions of the United States, one would rightly feel a general ambiance of malaise. High inflation, declining real wages, turmoil in the federal government, war waging across the world, and growing threats of nationalistic empires compound to depress the country’s spirits. However, this is not the first time the country has been faced with such despair. In fact, one has to go back only 50 years to the 1970s when the country was rife with rising energy costs, an ever-expanding threat of the Soviet Union, and seemingly endless stagflation. Many leaders at the time claimed that the country’s demise was a result of living in luxury for too long. During a fireside speech to the nation on energy in 1977, President Jimmy Carter famously stated:
"We must face the fact that the energy shortage is permanent. There is no way we can solve it quickly. But if we all cooperate, and make modest sacrifices, if we learn to live thriftily and remember the importance of helping our neighbors, then we can find ways to adjust, and to make our society more efficient, and our own lives more enjoyable and productive."
In that speech, President Carter told his constituents to combat the energy shortage by turning down their thermostats and wearing sweaters. Two years later, inflation had increased from its 1977 level of 6.7% to 13.3%, crude oil prices increased from $12.70 per barrel to $28.64, and unemployment was at 7.2%. The United States had fallen into an even deeper despair. Knowing that his constituents were upset with his policy, Carter attempted to confront this despair with his infamous “Malaise Speech.” After again claiming that Americans were too focused on self-indulgence and consumption,” President Carter persisted in his condemnation of what, in his eyes, was excessive consumption. Instead of uplifting the hearts of Americans with hope, Carter told Americans in peril to continue conserving energy. This was, in his words, “a true act of patriotism.”
Needless to say, telling Americans that they have to live without the economic liberty and prosperity that their parents and grandparents had enjoyed was not well received. Americans began looking for a different voice to lift them from the fog covering the country. Lying in wait, a former governor of California announced to this depressed nation his plan to aid the wounded Union. On November 13th, 1979, nearly four months after the “Malaise Speech,” Ronald Reagan announced that he would oppose Jimmy Carter in the 1980 presidential election.
The former actor had unsuccessfully tried twice before to win the presidency. Americans had previously found the conservative Reagan too radical to hold the office. Many Americans thought that he would strip the country of the social welfare benefits that the government had provided citizens for nearly a half century. However, in 1979, the country was desperate. They had previously elected two generally moderate presidents who told the Americans that they had a plan to save the country. With continued stagflation, high interest rates, and deteriorating international relations, Americans were ready to elect a bold president who laid out a clear and transparent plan to aid the country’s ills. Ronald Reagan would come to satisfy this hope for change.
The message was sent loud and clear on November 4th, 1980. Election day left President-Elect Reagan with 489 of the country’s electoral votes, with incumbent President Carter receiving only 49 votes. It represented the ninth largest landslide of a presidential election in US History. His subsequent economic successes were, in turn, rewarded with his historical victory over Walter Mondale in 1984— the 5th largest landslide in US election history.
In terms of its economic policies, the Reagan Administration increased government expenditures on defense and substantially cut taxes. These expansionary fiscal policy actions were accompanied by a corresponding monetary policy by the Federal Reserve. The combined expansionary monetary and fiscal policy actions led to the U.S.’s economic recovery during the second half of the 1980s and lowered interest rates. Ten-year Treasury yields dropped from 13.01% in 1982 to 7.67% in 1986. Real GDP grew 7.3% in 1984 and 4.2% in 1985, while the unemployment rate fell from 9.7% in 1982 to 7% in 1986. Inflation declined from a high of 13.3% at the end of 1979, to 3.9% in 1984, and then 1.1% in 1986. Reagan’s deregulation of energy industry also encouraged oil exploration. By the mid-1980s, a worldwide oil surplus had developed and began weighing down on energy prices. In contrast to the 1970s and early 1980s, energy prices were relatively stable for most of the 1990s. For the period from 1983 to 2004, the average price of crude oil was $22.61. Finally, the decrease in taxes led to greater private-sector investments. This private-sector investment led to scientific and technological advances in areas such as genetic engineering and telecommunications, which, in turn, led to a significant amount of supply-side economic growth realized in the 1990s. As a result, for much of the 1990s, the U.S. enjoyed not only significant economic growth but also stable prices. During this period, interest rates in the United States trended down with the 10-year U.S. Treasury yield declining from 10.6% in 1985 to 6.03% in 2000. For the same period, the unemployment rate fell from 7.2% to 4.0%.
In foreign affairs, Reagan stood firm in his opposition to the Soviet Union, or as he called it, the “Evil Empire.” 1989, in turn, saw the collapse of the Soviet Union and the emergence of 12 Central and Eastern European Countries (CEEC), as well as the 15 Newly Independent States (NIS) of the former Soviet Union.
While one could go on citing the accomplishments of the Reagan Administration, there is one other important accomplishment of his presidency of note— the renewed sense of national identity. Ronald Reagan pitched his bid for the presidency at a time when American values were being challenged by none other than the leaders of the nation. The individualism that we held so dear was being challenged as greed. The spirit of entrepreneurship and industry were looked at as the cause of our problems, not the solution. However, most importantly, the American flag was no longer a symbol of inspiration that it had been throughout her life. The American spirit was crushed, but President Reagan would breathe new life into it. Reaganism provided a new wave of patriotism for the country that was born from the belief that the United States had a bright, long future ahead of her. In his announcement for the candidacy, Reagan told the nation that he would end, what he thought was, the policies born of disbelief in the greatness of the American future. To Reagan, the policies restricting American exploration of energy strangled the long history of American industry. The policies of detente proved an acceptance of a fallen standing in the world. The “Great Communicator” conveyed these sentiments to the American populace and convinced them that his patriotic message would reignite the fire of American exceptionalism.
Over the time of Reagan’s presidency, the American flag went from simply an icon of the nation to a symbol of hope, freedom, and industry. Americans regained trust in the federal government and shared the president’s bright outlook for the future. It was not only the time of Reagan that this patriotic feeling flowed throughout the nation. Reaganism promoted patriotism for the next three decades, and included both Republican and Democratic administrations of the Bushes, Bill Clinton, and Barack Obama. Industry expanded, the standard of living rose, and the American flag flew proudly throughout the land.
Today, we step back and look at the country with a pessimistic outlook about her future. The malaise of the 1970’s permeates the hearts of the citizenry. We worry that no longer do the countries of the world look to us for leadership as they search for other alliances. The energy situation is only worsening. What are Americans being told? Leadership tells us that we have lived in luxury too long and that the ills of our nation are our own fault. Instead of telling cold Americans to put on a sweater, current leadership tells poor Americans to buy an electric car. Like the 1970s, disapproval of the presidency continues week after week to reach new lows.
The United States is again at, as Ronald Reagan said, a “rendezvous with destiny.” People are again full of angst and disappointment—the bright, shining city on the hill has gone dim. However, America is not, as some pundits maintain, destined to forever keep off those lights. As in her past, America does have a bright future ahead of her. Americans are in search of that leader with the policies and principle that will re-energize the country and bring it together. Not only does she need an effective president, but a cultural icon that will again bring about the tide of patriotism that Reaganism provided in the 1980s. Our populace must remember our rich history and traditions that brought the thirteen British Colonies from the fog of war to a world superpower. Ronald Reagan brought about not only important policy changes in the U.S., but more importantly, a cultural revolution that changed the direction of an ailing nation.
Link to Reagan’s announcement of candidacy to the nation:
https://www.youtube.com/watch?v=fAtYMD-H2UY