Question

I'm speaking to you tonight to give you a report on the state of our Nation's economy. . . .

Over the past decades we've talked of curtailing government spending so that we can then lower the tax burden. Sometimes we've even taken a run at doing that. But there were always those who told us that taxes couldn't be cut until spending was reduced. Well, you know, we can lecture our children about extravagance until we run out of voice and breath. Or we can cure their extravagance by simply reducing their allowance.

It's time to recognize 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.

—President Ronald Reagan, February 5, 19812

Answer 1

President Reagan, February 5, 1981: Urges curbing government spending to cut taxes, likening it to disciplining extravagant children, amid economic crisis.

In this address on February 5, 1981, President Ronald Reagan acknowledged the longstanding debate about government spending and taxes.

He emphasized the need to break away from traditional approaches and confront an impending economic crisis.

The President noted that while discussions had focused on reducing government spending to lower the tax burden, achieving this had proven challenging.

Reagan drew a parallel between lecturing children on extravagance and the government's responsibility to address its spending habits.

He suggested that, like parents reducing their children's allowance to curb excessive spending, the government needed to take decisive action to control its budget.

The President argued that the nation had reached a turning point and faced a severe economic threat.

He urged a departure from business-as-usual practices, signaling the necessity for a different strategy to avert an impending calamity.

In essence, Reagan's speech highlighted the urgency of addressing economic challenges through unconventional means and signaled a departure from traditional fiscal policies to chart a new course for the nation's economic well-being.