INTRODUCTION: President Ronald Reagan issued a grim warning on the economy to United States citizens on Thursday night (5 February).
CU President Reagan speaking
SPEECH ON FILM (TRANSCRIPT)
SEQ. 1: REAGAN: "Let me try to put this is personal terms. Here is a dollar, such as you earned, spent or saved in 1960, and here is a quarter, a dime and a penny: 36 cents. That's what this 1960 dollar is worth today. And at the present world inflation rate -- and our rate should continue three more years -- that dollar of 1960 will be worth a quarter. It's time to recognise that we've come to a turning point. We're threatened with an economic calamity of tremendous proportions, and the old 'business as usual' treatment can't save us. Together we must chart a different course. We must increase productivity. That means making it possible for industry to modernise and make use of the technology which we ourselves invented. That means putting Americans back to work and that means, above all, bringing government spending back within government revenues which is the only way, together with increased productivity that we can reduce and yes, eliminate inflation. We can leave our children with an unrepayable massive debt and a shattered economy, or we can leave them liberty in a land where every individual has the opportunity to be whatever God intended us to be. All it takes is a little common sense and recognition of our own ability. Together we can forge a new beginning for America."
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Background: INTRODUCTION: President Ronald Reagan issued a grim warning on the economy to United States citizens on Thursday night (5 February). The new President said America is in the worst economic mess since the depression of the 1930's. But he sounded a note of hope and appealed for support for a comprehensive economic package which he will send to Congress on 18 February; a plan which includes a ten percent income tax reduction each year, for the next three years.