1 00:00:01,376 --> 00:00:04,004 [horse blustering] 2 00:00:04,045 --> 00:00:07,841 [indistinct chatter] 3 00:00:13,888 --> 00:00:14,723 [chatter continues] 4 00:00:14,764 --> 00:00:15,974 [man] What time is it? 5 00:00:16,016 --> 00:00:18,059 Depends. 6 00:00:18,101 --> 00:00:19,978 [man] Okay. Bring him on. 7 00:00:20,020 --> 00:00:23,481 dramatic music plays 8 00:00:31,239 --> 00:00:33,491 [Ronald] Good morning. 9 00:00:33,533 --> 00:00:34,993 [man] Typical California weather. 10 00:00:35,035 --> 00:00:36,870 Yes, since this is the first day 11 00:00:36,911 --> 00:00:39,539 of this kind of weather of fog since we've been here, 12 00:00:39,581 --> 00:00:42,250 I shall refrain from saying that you're all responsible. 13 00:00:42,292 --> 00:00:43,501 [laughter] 14 00:00:43,543 --> 00:00:48,298 Western dramatic music plays 15 00:00:56,097 --> 00:00:59,309 [Ronald] That is the tax program. 16 00:00:59,350 --> 00:01:04,189 They are signed, and now all we have to do 17 00:01:04,230 --> 00:01:05,732 is implement them. 18 00:01:11,738 --> 00:01:14,240 This is the budget deal, 19 00:01:14,282 --> 00:01:17,243 and this is the tax program, 20 00:01:17,285 --> 00:01:20,830 but I think they represent and mark an end to 21 00:01:20,872 --> 00:01:23,583 the excessive growth in government bureaucracy 22 00:01:23,625 --> 00:01:26,419 and government spending, government taxing. 23 00:01:26,461 --> 00:01:27,712 [dog panting] 24 00:01:27,754 --> 00:01:29,881 And we're getting... 25 00:01:29,923 --> 00:01:32,217 No, no, the bill's passed. You can't do anything about it. 26 00:01:32,258 --> 00:01:34,427 [dog whines] 27 00:01:34,469 --> 00:01:35,428 [panting] 28 00:01:35,470 --> 00:01:37,305 Victory. 29 00:01:37,347 --> 00:01:39,933 [woman] Will you still be able to balance the budget in '84? 30 00:01:39,974 --> 00:01:43,228 [Ronald] Well, this has always been our goal. 31 00:01:43,269 --> 00:01:44,729 Millie won't hurt you. 32 00:01:44,771 --> 00:01:45,605 [laughter] 33 00:01:47,148 --> 00:01:48,566 [Ronald] Lassie. 34 00:01:48,608 --> 00:01:50,235 Oh, Lassie--Millie. 35 00:01:50,276 --> 00:01:55,115 [laughter] 36 00:01:55,156 --> 00:01:58,201 [Lear] When Ronald Reagan was running for the presidency, 37 00:01:58,243 --> 00:02:02,455 I hired Robert Scheer to travel with him, side-by-side. 38 00:02:02,497 --> 00:02:06,876 suspenseful music plays 39 00:02:06,918 --> 00:02:10,713 Robert Scheer was the toughest journalist I knew 40 00:02:10,755 --> 00:02:13,007 in terms of an investigative journalist. 41 00:02:15,844 --> 00:02:22,142 Reagan was answering everything with a kind of simplicity. 42 00:02:22,183 --> 00:02:23,810 You came to a place where his likeability 43 00:02:23,852 --> 00:02:26,813 was more important than his lack of an answer. 44 00:02:26,855 --> 00:02:29,524 If you reduce the extravagant size 45 00:02:29,566 --> 00:02:31,860 and cost to the federal government, 46 00:02:31,901 --> 00:02:33,862 you're going to have the money to do the things, 47 00:02:33,903 --> 00:02:36,030 to build the defense that we need 48 00:02:36,072 --> 00:02:39,200 because you're going to have a far more prosperous nation. 49 00:02:39,242 --> 00:02:41,369 [Scheer] He was pretty comfortable 50 00:02:41,411 --> 00:02:44,831 with his understanding of politics at that point. 51 00:02:44,873 --> 00:02:48,668 He knew what he believed, and Reagan was, uh, 52 00:02:48,710 --> 00:02:51,171 a consummate salesman. 53 00:02:51,212 --> 00:02:54,507 The biggest obstacle to efficient service 54 00:02:54,549 --> 00:02:59,053 to the poor and the needy is Washington. 55 00:02:59,095 --> 00:03:00,471 [Scheer] Everybody else wants to talk about the polls. 56 00:03:00,513 --> 00:03:02,182 They wanna talk about who's winning, who's losing. 57 00:03:02,223 --> 00:03:03,683 Nobody wants to talk about whether it's good 58 00:03:03,725 --> 00:03:06,144 for the country, what they do, what the issues are, 59 00:03:06,186 --> 00:03:09,272 and, uh, why do these people like Ronald Reagan? 60 00:03:09,314 --> 00:03:10,982 I mean, personally I think he's okay, but why do they want 61 00:03:11,024 --> 00:03:13,026 Ronald Reagan to be their president? 62 00:03:13,067 --> 00:03:16,029 I think it's a fascinating thing to look into, you know? 63 00:03:16,070 --> 00:03:17,989 Today, I wanna talk about the decline 64 00:03:18,031 --> 00:03:20,783 in the American standard of living. 65 00:03:20,825 --> 00:03:25,496 [Will] In 1980, the country was depressed, 66 00:03:25,538 --> 00:03:28,625 was in a bad mood, it had had a long bad patch. 67 00:03:28,666 --> 00:03:30,210 [Reporter] Today, for the first time, 68 00:03:30,251 --> 00:03:32,212 President Carter admitted we are in a recession, 69 00:03:32,253 --> 00:03:34,047 and he said it's going to cause pain and disruption 70 00:03:34,088 --> 00:03:36,549 for a lot of Americans before it's over. 71 00:03:37,926 --> 00:03:40,553 I would like Mr. Carter to explain to me, 72 00:03:40,595 --> 00:03:42,680 why the inflation is as high as it is, 73 00:03:42,722 --> 00:03:45,391 why unemployment is what it is. 74 00:03:45,433 --> 00:03:48,186 [Stahl] So many people were out of work, 75 00:03:48,228 --> 00:03:50,230 we had just had gas lines. 76 00:03:50,271 --> 00:03:52,732 The economy was really suffering, 77 00:03:52,774 --> 00:03:55,276 It was a very dark time. 78 00:03:55,318 --> 00:03:59,989 [Alter] Reagan saw that as an opportunity to run 79 00:04:00,031 --> 00:04:02,992 as an upbeat, sunny candidate, 80 00:04:03,034 --> 00:04:07,914 he was able to fuse optimism and patriotism. 81 00:04:07,956 --> 00:04:09,582 [crowd cheering] 82 00:04:09,624 --> 00:04:11,251 At the period of time that he was running, 83 00:04:11,292 --> 00:04:15,004 his message, his belief system was resonating. 84 00:04:15,046 --> 00:04:19,092 No problem that we face today can compare with a need 85 00:04:19,133 --> 00:04:21,427 to restore the health of the American economy 86 00:04:21,469 --> 00:04:23,388 and the strength of the American dollar. 87 00:04:23,429 --> 00:04:25,723 [Baker] The principles and values he embraced 88 00:04:25,765 --> 00:04:29,185 were conservative Republican principles-- 89 00:04:29,227 --> 00:04:33,231 lower taxes, stronger defense, freedom of the individual, 90 00:04:33,273 --> 00:04:34,941 small government. 91 00:04:34,983 --> 00:04:37,944 [Norquist] To call yourself a Reagan Republican 92 00:04:37,986 --> 00:04:40,738 is to say, "We're gonna rein in spending 93 00:04:40,780 --> 00:04:43,908 and limit the size and scope of government." 94 00:04:43,950 --> 00:04:45,910 "So you wanna abolish government?" 95 00:04:45,952 --> 00:04:48,079 No, I don't wanna abolish government. 96 00:04:48,121 --> 00:04:49,956 I wanna make it so small, you could drag it 97 00:04:49,998 --> 00:04:52,083 in the bathroom and drown it in the bathtub, 98 00:04:52,125 --> 00:04:54,252 that small, small as a bathtub, okay? 99 00:04:54,294 --> 00:04:56,087 Very small. 100 00:04:56,129 --> 00:04:57,755 [Ronald] And the leadership that I envision 101 00:04:57,797 --> 00:05:01,175 would be to take the lead in getting government off 102 00:05:01,217 --> 00:05:03,094 the backs of the people of the United States 103 00:05:03,136 --> 00:05:06,723 and turning you loose to do what you can do so well. 104 00:05:06,764 --> 00:05:10,184 Small government message was always code 105 00:05:10,226 --> 00:05:14,147 for more money in your pocket. 106 00:05:14,188 --> 00:05:16,649 That was a strong message. 107 00:05:16,691 --> 00:05:20,611 [Shearer] It seemed like a painless economic policy-- 108 00:05:20,653 --> 00:05:23,072 cut government and get out of the way, 109 00:05:23,114 --> 00:05:28,494 and everybody will get wealthy together 110 00:05:28,536 --> 00:05:31,122 but it was a cover for privilege and corporate power. 111 00:05:31,164 --> 00:05:34,459 [crowd chanting] 112 00:05:34,500 --> 00:05:37,003 militaristic music plays 113 00:05:37,045 --> 00:05:39,172 [Cronkite] Good morning. 114 00:05:39,213 --> 00:05:41,924 Ronald Reagan is just about to become the 40th President 115 00:05:41,966 --> 00:05:43,593 of these United States. 116 00:05:43,634 --> 00:05:45,345 [sirens wailing] 117 00:05:45,386 --> 00:05:46,763 [man] The motorcade is beginning to roll 118 00:05:46,804 --> 00:05:48,973 toward Capitol Hill, Walter. 119 00:05:49,015 --> 00:05:50,558 [man] I think what struck both of us-- 120 00:05:50,600 --> 00:05:53,186 the contrast and the crowd. 121 00:05:53,227 --> 00:05:55,396 [man] Just four years ago, Jimmy Carter tried to run 122 00:05:55,438 --> 00:05:58,024 a populist, a people's inauguration, 123 00:05:58,066 --> 00:06:02,236 today, the emphasis was upon a different approach. 124 00:06:02,278 --> 00:06:04,614 They made no excuse of the fact that the rich folks 125 00:06:04,655 --> 00:06:08,201 were here and the-- and the wealthy Republicans. 126 00:06:08,242 --> 00:06:09,952 They were having a good time. This was their day in the-- 127 00:06:09,994 --> 00:06:11,996 in the sun. 128 00:06:12,038 --> 00:06:13,122 You could look out across that crowd 129 00:06:13,164 --> 00:06:16,918 and see very, very few minorities. 130 00:06:16,959 --> 00:06:23,549 [trumpets playing triumphant music] 131 00:06:26,427 --> 00:06:28,638 [Lopez] For Ronald Reagan, 132 00:06:28,679 --> 00:06:31,557 the point of power was to convince Americans 133 00:06:31,599 --> 00:06:33,393 to turn against government, 134 00:06:33,434 --> 00:06:35,728 to build popular support for policies 135 00:06:35,770 --> 00:06:40,817 that ultimately helped corporations and the very rich. 136 00:06:40,858 --> 00:06:45,071 [band playing Hail to the Chief] 137 00:06:45,113 --> 00:06:47,198 [cannon firing] 138 00:06:47,240 --> 00:06:49,826 [Lopez] One way to do that was to describe government 139 00:06:49,867 --> 00:06:52,245 as a threat to all of us. 140 00:06:52,286 --> 00:06:56,457 In this present crisis, government is not the solution 141 00:06:56,499 --> 00:06:58,251 to our problem. 142 00:06:58,292 --> 00:07:02,171 Government is the problem. 143 00:07:02,213 --> 00:07:05,258 [Shearer] That was an incredibly influential 144 00:07:05,299 --> 00:07:07,802 bit of political propaganda. 145 00:07:07,844 --> 00:07:11,347 Government is the problem. 146 00:07:11,389 --> 00:07:14,934 Because on the face of it, it's absolutely not true. 147 00:07:14,976 --> 00:07:16,894 It's a myth, 148 00:07:16,936 --> 00:07:21,107 but it's a convenient myth for the powerful. 149 00:07:21,149 --> 00:07:23,901 [Wiley] This rhetoric about small government 150 00:07:23,943 --> 00:07:27,780 represented a concerted strategic effort 151 00:07:27,822 --> 00:07:32,785 by the wealthy to expand their wealth and their power 152 00:07:32,827 --> 00:07:35,121 and their privilege 153 00:07:35,163 --> 00:07:37,039 and convince the American public 154 00:07:37,081 --> 00:07:38,875 that it was good for them. 155 00:07:38,916 --> 00:07:40,376 [man] Ladies and gentlemen, 156 00:07:40,418 --> 00:07:41,461 the President of the United States 157 00:07:41,502 --> 00:07:44,213 and Mrs. Reagan. 158 00:07:44,255 --> 00:07:47,300 [Kelley] They had in Ronald Reagan 159 00:07:47,341 --> 00:07:52,430 the perfect vehicle to take their gospel forward. 160 00:07:52,472 --> 00:07:57,310 But he wasn't just a Manchurian Candidate. 161 00:07:57,351 --> 00:07:58,519 He believed it. 162 00:07:58,561 --> 00:08:00,104 [cheers and applause] 163 00:08:00,146 --> 00:08:02,190 [Alter] Reagan's presidency marked a turning point 164 00:08:02,231 --> 00:08:04,066 in American politics. 165 00:08:04,108 --> 00:08:07,904 It represented a massive shift of economic power 166 00:08:07,945 --> 00:08:09,197 in the country. 167 00:08:09,238 --> 00:08:11,240 A toast. 168 00:08:11,282 --> 00:08:15,286 [applause] 169 00:08:15,328 --> 00:08:18,915 serious music plays 170 00:08:21,000 --> 00:08:22,793 [Brinkley] Have you thought about the fact 171 00:08:22,835 --> 00:08:25,546 that the last president who tried really seriously 172 00:08:25,588 --> 00:08:28,508 to change the course of the American economy 173 00:08:28,549 --> 00:08:33,387 in a substantial way was Franklin Roosevelt in 1933? 174 00:08:33,429 --> 00:08:35,598 No one has tried since then? 175 00:08:35,640 --> 00:08:38,976 Well, without saying anything about those who followed, 176 00:08:39,018 --> 00:08:43,022 it is true, and isn't it somewhat comparative today 177 00:08:43,064 --> 00:08:45,525 that he came in at a kind 178 00:08:45,566 --> 00:08:49,153 of watershed time when the people said 179 00:08:49,195 --> 00:08:51,280 "We cannot continue on this path. 180 00:08:51,322 --> 00:08:53,366 We have to try something"? 181 00:08:53,407 --> 00:08:56,869 And he was willing, uh, to try. 182 00:08:56,911 --> 00:08:58,871 [birds chirping] 183 00:08:58,913 --> 00:09:03,209 calm orchestral music plays 184 00:09:03,251 --> 00:09:04,877 [man] The atmosphere has changed. 185 00:09:04,919 --> 00:09:07,338 Sure, there's still a good deal of unemployment around, 186 00:09:07,380 --> 00:09:10,508 but now many who are working have the five-day week, 187 00:09:10,550 --> 00:09:12,426 and more important, 188 00:09:12,468 --> 00:09:14,178 the feeling of imminent disaster, 189 00:09:14,220 --> 00:09:17,223 the fear of economic collapse is gone. 190 00:09:17,265 --> 00:09:20,184 [FDR] I pledge myself 191 00:09:20,226 --> 00:09:23,437 to a New Deal for the American people. 192 00:09:23,479 --> 00:09:25,481 [crowd cheering] 193 00:09:25,523 --> 00:09:29,277 [Alter] To help the country in the Great Depression, 194 00:09:29,318 --> 00:09:32,488 President Roosevelt proposed a new social contract-- 195 00:09:32,530 --> 00:09:36,200 a New Deal between the people and the government. 196 00:09:36,242 --> 00:09:39,787 [Lopez] FDR understood that the economy is outside 197 00:09:39,829 --> 00:09:41,664 of the control of any one individual, 198 00:09:41,706 --> 00:09:44,041 so we need government to actively intervene 199 00:09:44,083 --> 00:09:46,919 in the marketplace to help all of us. 200 00:09:46,961 --> 00:09:49,046 [Wiley] It was investments in things like 201 00:09:49,088 --> 00:09:53,217 unemployment insurance, Social Security, 202 00:09:53,259 --> 00:09:56,596 mortgage lending backed by the federal government, 203 00:09:56,637 --> 00:09:59,432 the creation of labor unions-- 204 00:09:59,473 --> 00:10:01,851 those are the things that created the middle class. 205 00:10:01,892 --> 00:10:03,394 [Johnson] Prior to The Great Depression, 206 00:10:03,436 --> 00:10:05,229 most Americans were poor. 207 00:10:05,271 --> 00:10:07,773 The only middle class in America were people 208 00:10:07,815 --> 00:10:10,776 who had businesses, who owned shops. 209 00:10:10,818 --> 00:10:14,363 It was literally the New Deal that gave America 210 00:10:14,405 --> 00:10:18,284 the opportunity to build a middle class. 211 00:10:18,326 --> 00:10:20,620 [Shearer] Ronald Reagan's family 212 00:10:20,661 --> 00:10:23,080 was supported and helped by New Deal programs, 213 00:10:23,122 --> 00:10:26,000 as were millions of Americans. 214 00:10:26,042 --> 00:10:27,793 [man] I have the sense that not everything 215 00:10:27,835 --> 00:10:30,338 that has happened since the New Deal is bad, 216 00:10:30,379 --> 00:10:32,131 and I can't believe that you think everything is-- 217 00:10:32,173 --> 00:10:33,633 you can't believe that unemployment... 218 00:10:33,674 --> 00:10:35,259 -No. -...Insurance and... 219 00:10:35,301 --> 00:10:39,138 No. But what I have to say is that some of those things 220 00:10:39,180 --> 00:10:42,266 would be done better at the private sector. 221 00:10:42,308 --> 00:10:44,143 Some could be done better at the local sector. 222 00:10:44,185 --> 00:10:46,145 But what's good that they've done? 223 00:10:46,187 --> 00:10:48,105 Come on. 224 00:10:48,147 --> 00:10:50,024 [Scheer] The whole point of that interview 225 00:10:50,066 --> 00:10:53,694 is he's denying his own family's experience, 226 00:10:53,736 --> 00:10:57,657 that government intervention certainly was essential, 227 00:10:57,698 --> 00:11:00,284 and he became a hypocrite. 228 00:11:00,326 --> 00:11:01,952 We spread across this land building farms 229 00:11:01,994 --> 00:11:03,621 and towns and cities and we did it 230 00:11:03,663 --> 00:11:05,456 without any federal land planning program 231 00:11:05,498 --> 00:11:08,125 or urban renewal. 232 00:11:08,167 --> 00:11:10,836 [Lopez] One of the foundational myths 233 00:11:10,878 --> 00:11:13,464 of the United States is always the frontier... 234 00:11:13,506 --> 00:11:15,007 [horse blusters] 235 00:11:15,049 --> 00:11:18,511 the rugged individual who took care of himself, 236 00:11:18,552 --> 00:11:23,474 and what it said was real men don't need government. 237 00:11:23,516 --> 00:11:25,184 They'll stand on their own two feet, 238 00:11:25,226 --> 00:11:26,977 and if they fail... 239 00:11:27,019 --> 00:11:29,522 they'll have the virtue to die quietly 240 00:11:29,563 --> 00:11:31,982 without complaining. 241 00:11:32,024 --> 00:11:34,860 But the frontier was never that way. 242 00:11:34,902 --> 00:11:36,862 The frontier was a collective enterprise. 243 00:11:36,904 --> 00:11:38,155 [motor sputters] 244 00:11:38,197 --> 00:11:39,824 [buzzing] 245 00:11:39,865 --> 00:11:42,410 [Cannon] What is missing from the picture 246 00:11:42,451 --> 00:11:45,538 is what the government did, 247 00:11:45,579 --> 00:11:47,081 particularly the building of the railroad, 248 00:11:47,123 --> 00:11:51,210 which is what opens the West, but also telegraph lines, 249 00:11:51,252 --> 00:11:55,172 and all sorts of infrastructure that no individuals, 250 00:11:55,214 --> 00:11:57,383 no matter how brave or rugged, 251 00:11:57,425 --> 00:11:59,510 could've constructed on their own. 252 00:11:59,552 --> 00:12:02,179 Both of these, look, both of them 253 00:12:02,221 --> 00:12:04,056 dead up there where-- where it counts. 254 00:12:04,098 --> 00:12:07,351 [Alter] All the things that government did 255 00:12:07,393 --> 00:12:10,020 were just sort of kissed off by Reagan. 256 00:12:10,062 --> 00:12:12,565 [man] What gives this administration its cache 257 00:12:12,606 --> 00:12:16,235 are Ronald Reagan's beliefs, which grew and matured 258 00:12:16,277 --> 00:12:17,737 in America which no longer exists 259 00:12:17,778 --> 00:12:20,698 or exists only in his mind, 260 00:12:20,740 --> 00:12:22,408 that hard work and self-reliance, for instance, 261 00:12:22,450 --> 00:12:24,910 will inevitably produce personal success, 262 00:12:24,952 --> 00:12:28,247 satisfaction, and wealth. 263 00:12:28,289 --> 00:12:30,124 Reagan was committed to promoting the message 264 00:12:30,166 --> 00:12:32,752 that we're all on our own, 265 00:12:32,793 --> 00:12:35,421 whether you succeed or whether you fail. 266 00:12:35,463 --> 00:12:38,048 [Wiley] That was so incredibly cruel, 267 00:12:38,090 --> 00:12:41,427 and it drives Reagan's narrative of 268 00:12:41,469 --> 00:12:43,888 "We pulled ourselves up by our bootstraps. 269 00:12:43,929 --> 00:12:45,806 Wow come you don't have any boots?" 270 00:12:45,848 --> 00:12:47,224 [man] United States. 271 00:12:47,266 --> 00:12:52,271 [camera shutters clicking] 272 00:12:52,313 --> 00:12:54,273 How do you do? 273 00:12:54,315 --> 00:12:57,234 [Stahl] The first time I actually saw him in person 274 00:12:57,276 --> 00:13:00,237 was right in front of the press corps 275 00:13:00,279 --> 00:13:02,740 and we all kind of melted. 276 00:13:02,782 --> 00:13:05,409 We were all little puddles on the floor. 277 00:13:05,451 --> 00:13:09,455 He also had more wrinkles up close 278 00:13:09,497 --> 00:13:10,790 than the camera picked up. 279 00:13:10,831 --> 00:13:12,374 The camera loved this man. 280 00:13:12,416 --> 00:13:15,419 And a little bit of frailty to him. 281 00:13:15,461 --> 00:13:16,962 He wasn't as hardy and healthy 282 00:13:17,004 --> 00:13:19,965 as he seemed on television, 283 00:13:20,007 --> 00:13:22,718 but when he went on television, he was the actor, 284 00:13:22,760 --> 00:13:26,806 and he was playing a vigorous president. 285 00:13:26,847 --> 00:13:28,974 [indistinct chatter] 286 00:13:29,016 --> 00:13:32,895 dramatic music plays 287 00:13:32,937 --> 00:13:36,148 [Parvin] Mrs. Reagan was not as comfortable 288 00:13:36,190 --> 00:13:39,318 as President Reagan, 289 00:13:39,360 --> 00:13:41,320 and she didn't convey the same personality 290 00:13:41,362 --> 00:13:43,322 that he did. 291 00:13:43,364 --> 00:13:45,449 So she had some things in that regard 292 00:13:45,491 --> 00:13:47,618 that she needed to overcome. 293 00:13:47,660 --> 00:13:48,953 I wait, and I think I have to wait. 294 00:13:48,994 --> 00:13:51,497 [Stahl] I once took a trip with the President 295 00:13:51,539 --> 00:13:54,875 and on the plane coming home, Nancy Reagan-- 296 00:13:54,917 --> 00:13:59,964 she was telling jokes and being a little sarcastic. 297 00:14:00,005 --> 00:14:03,300 And she was hilarious. Hilarious. 298 00:14:03,342 --> 00:14:05,719 So I said, "I have to have an interview with her, 299 00:14:05,761 --> 00:14:08,848 and the public has to see this." 300 00:14:08,889 --> 00:14:10,516 And they gave me an interview, eventually. 301 00:14:10,558 --> 00:14:14,311 And no, what she gave me was the public presentation. 302 00:14:14,353 --> 00:14:16,856 She seemed stiff. 303 00:14:16,897 --> 00:14:19,942 She seemed as if she didn't have a real personality. 304 00:14:19,984 --> 00:14:21,986 She was an actor, too, but not-- 305 00:14:22,027 --> 00:14:25,698 she couldn't reach down the way the President could. 306 00:14:25,739 --> 00:14:26,949 [man] That's great. 307 00:14:26,991 --> 00:14:27,658 [man] Just looking right at me like that. 308 00:14:27,700 --> 00:14:29,118 Oh, sure. 309 00:14:31,078 --> 00:14:32,162 [camera shutter clicks] 310 00:14:32,204 --> 00:14:36,292 serious music playing 311 00:14:36,333 --> 00:14:39,461 [man] I'm gonna stick with just a drink. 312 00:14:39,503 --> 00:14:41,630 -Bran and flakes? -Not all bran. 313 00:14:41,672 --> 00:14:44,049 Bran and flakes, if you got it on the bananas. 314 00:14:46,886 --> 00:14:53,058 Suspenseful music plays 315 00:14:53,100 --> 00:14:55,769 [Baker] Priority one for the Reagan administration 316 00:14:55,811 --> 00:14:58,689 after the inauguration in 1981 317 00:14:58,731 --> 00:15:00,816 was the economic situation, 318 00:15:00,858 --> 00:15:05,738 and we decided we were gonna be very tough about that. 319 00:15:05,779 --> 00:15:07,197 -Morning. -Good morning. 320 00:15:07,239 --> 00:15:08,616 Good morning, all. 321 00:15:08,657 --> 00:15:12,202 Everyone looks very bright and happy. 322 00:15:12,244 --> 00:15:14,038 Okay. 323 00:15:14,079 --> 00:15:17,666 The agenda is mainly concerned with the economic program, 324 00:15:17,708 --> 00:15:19,835 though try not to smile too much. 325 00:15:19,877 --> 00:15:22,504 [laughter] 326 00:15:22,546 --> 00:15:26,425 I have to say that I am not one to shrink from a tough task, 327 00:15:26,467 --> 00:15:29,720 but I must also say that the goals that you gave us 328 00:15:29,762 --> 00:15:33,057 are extraordinarily difficult to reconcile, 329 00:15:33,098 --> 00:15:37,227 but I'm pleased to report today that we're almost there. 330 00:15:37,269 --> 00:15:39,271 When President Reagan was elected, 331 00:15:39,313 --> 00:15:43,609 his centerpiece economic promise was a large tax cut. 332 00:15:43,651 --> 00:15:45,778 [Lopez] Reagan had a story to tell. 333 00:15:45,819 --> 00:15:48,739 He said, "We have to cut taxes for the very rich 334 00:15:48,781 --> 00:15:50,991 and wealthy corporations. 335 00:15:51,033 --> 00:15:54,078 Trust me, that money is gonna trickle down 336 00:15:54,119 --> 00:15:55,996 to all the rest of you," 337 00:15:56,038 --> 00:15:58,123 the idea being that the very rich 338 00:15:58,165 --> 00:16:00,292 from all that they would save would invest more, 339 00:16:00,334 --> 00:16:01,669 would spend more, 340 00:16:01,710 --> 00:16:04,004 and then everybody would be better off. 341 00:16:04,046 --> 00:16:07,883 This was an idea that had been debunked for decades. 342 00:16:07,925 --> 00:16:11,136 He's promising to cut taxes by 30% 343 00:16:11,178 --> 00:16:13,597 and balance the budget and increase defense spending 344 00:16:13,639 --> 00:16:17,851 and stop inflation all at the same time. 345 00:16:17,893 --> 00:16:20,896 [Shearer] When George Bush ran for president in 1980, 346 00:16:20,938 --> 00:16:25,567 he referred to Reaganomics as black magic. 347 00:16:25,609 --> 00:16:28,779 What I call a voodoo economic policy-- 348 00:16:28,821 --> 00:16:29,655 But of course, he couldn't say that 349 00:16:29,697 --> 00:16:32,116 once he became Vice President. 350 00:16:32,157 --> 00:16:34,118 [woman] The President has been lobbying Congress by telephone. 351 00:16:34,159 --> 00:16:36,996 -Hello? -But with each day, 352 00:16:37,037 --> 00:16:40,124 his opponents are gaining time to effect the outcome. 353 00:16:40,165 --> 00:16:41,667 I don't see a compromise out there. 354 00:16:41,709 --> 00:16:45,170 But are we still working for a compromise? Yes. 355 00:16:45,212 --> 00:16:46,839 [woman] Mr. President! 356 00:16:46,880 --> 00:16:49,508 President Reagan! 357 00:16:49,550 --> 00:16:51,010 -Mr. Reagan! [gunshot] 358 00:16:51,051 --> 00:16:55,889 ominous music playing 359 00:16:58,392 --> 00:16:59,268 [man] Lyn Nofziger told reporters at the hospital 360 00:16:59,309 --> 00:17:01,228 the president was not wounded. 361 00:17:01,270 --> 00:17:04,148 He was wounded. Oh, God! 362 00:17:04,189 --> 00:17:07,693 -He was--the President was hit? -[man] He's stable. 363 00:17:07,735 --> 00:17:11,155 He is in stable condition, all this information... 364 00:17:14,116 --> 00:17:15,117 [man] How do you feel? How do you feel? 365 00:17:15,159 --> 00:17:16,994 Great. 366 00:17:17,036 --> 00:17:18,996 [man] Reagan was unquestionably helped 367 00:17:19,038 --> 00:17:22,708 in his drive for his fundamental 368 00:17:22,750 --> 00:17:27,546 domestic policy of tax cuts by the fact that he got shot. 369 00:17:27,588 --> 00:17:32,551 [man] It was in the early months of his first term. 370 00:17:32,593 --> 00:17:36,180 [Khachigian] Just about a month after his assassination attempt, 371 00:17:36,221 --> 00:17:38,348 he gave his speech 372 00:17:38,390 --> 00:17:40,476 before the joint session of the Congress. 373 00:17:40,517 --> 00:17:42,186 The intention was in this speech 374 00:17:42,227 --> 00:17:44,730 was to take advantage of the situation 375 00:17:44,772 --> 00:17:48,400 and write the speech in such a way as to, 376 00:17:48,442 --> 00:17:50,235 sort of, manipulate the Congress to get them 377 00:17:50,277 --> 00:17:52,821 to do our bidding. 378 00:17:52,863 --> 00:17:55,407 -I have a letter with me. [papers rustle] 379 00:17:55,449 --> 00:17:59,203 Letter came from Peter Sweeney. He's in the second grade, 380 00:17:59,244 --> 00:18:01,997 and he said, "I hope you'll get well quick, 381 00:18:02,039 --> 00:18:04,333 or you might have to make a speech in your pajamas." 382 00:18:04,374 --> 00:18:07,252 [laughter] 383 00:18:07,294 --> 00:18:09,963 [applause] 384 00:18:10,005 --> 00:18:12,216 [Ron Jr.] How do you thwart somebody who has just reacted 385 00:18:12,257 --> 00:18:15,719 so courageously to being shot and nearly killed, 386 00:18:15,761 --> 00:18:19,473 you know, become this, sort of figure in the public's eye? 387 00:18:19,515 --> 00:18:24,269 You know, if he wants a tax cut, we'll do the tax cut, okay. 388 00:18:24,311 --> 00:18:26,897 White House officials can see their growing worry 389 00:18:26,939 --> 00:18:28,524 that the President's economic package 390 00:18:28,565 --> 00:18:31,693 is being perceived as too rough on the poor. 391 00:18:31,735 --> 00:18:34,238 [Shearer] The 1981 Reagan tax cut 392 00:18:34,279 --> 00:18:37,908 was the most significant redistribution of income 393 00:18:37,950 --> 00:18:40,953 since the 1930s in the Depression. 394 00:18:40,994 --> 00:18:45,415 [Johnson] Almost immediately after the tax cuts, 395 00:18:45,457 --> 00:18:48,127 the government was running out of money, 396 00:18:48,168 --> 00:18:51,130 and even his own economic advisors 397 00:18:51,171 --> 00:18:54,716 understood that that tax cut had gone too far. 398 00:18:54,758 --> 00:18:56,885 [man] Federal Reserve Chairman Volcker warned 399 00:18:56,927 --> 00:18:59,096 the Reagan administration and Congress that efforts 400 00:18:59,138 --> 00:19:01,181 to revive the economy would falter 401 00:19:01,223 --> 00:19:03,559 unless the budget deficit is reduced. 402 00:19:03,600 --> 00:19:05,394 [Stahl] People around him-- 403 00:19:05,435 --> 00:19:09,148 they said you have to start raising taxes again, 404 00:19:09,189 --> 00:19:11,275 but because he had set this goal, 405 00:19:11,316 --> 00:19:13,735 he really balked at it. 406 00:19:13,777 --> 00:19:17,489 Eventually, he did. He raised taxes many times. 407 00:19:17,531 --> 00:19:21,994 But if you tell a Republican that he raised taxes today, 408 00:19:22,035 --> 00:19:26,123 'cause this has happened to me, they'll say, "You're a liar." 409 00:19:26,165 --> 00:19:29,293 He somehow made us forget that. 410 00:19:29,334 --> 00:19:32,212 It was proof that he was a great actor, 411 00:19:32,254 --> 00:19:34,798 that he could make us forget that. 412 00:19:34,840 --> 00:19:36,258 [applause] 413 00:19:41,180 --> 00:19:43,849 [band playing Hail to the Chief] 414 00:19:48,478 --> 00:19:50,022 [Stahl] There was a great deal 415 00:19:50,063 --> 00:19:53,150 of opulence around the Reagans. 416 00:19:53,192 --> 00:19:56,695 In terms of their values, they seemed 417 00:19:56,737 --> 00:19:59,531 to be quite different from the average Americans. 418 00:20:01,241 --> 00:20:05,871 They'd come from not just Hollywood but Beverly Hills. 419 00:20:05,913 --> 00:20:08,540 There was a display of wealth. 420 00:20:08,582 --> 00:20:10,709 It wasn't just that they had money. 421 00:20:10,751 --> 00:20:13,045 They had to display it. 422 00:20:13,086 --> 00:20:16,381 And Nancy Reagan projected that. 423 00:20:16,423 --> 00:20:19,259 [cheers and applause] -Thank you. 424 00:20:19,301 --> 00:20:21,678 Thank you. Thanks. 425 00:20:21,720 --> 00:20:23,889 [Kelley] She came to the White House, 426 00:20:23,931 --> 00:20:26,433 and it was like Sacramento again. 427 00:20:26,475 --> 00:20:27,893 "This is a dump. 428 00:20:27,935 --> 00:20:29,353 I can't live here. 429 00:20:29,394 --> 00:20:31,063 The dishes are terrible. 430 00:20:31,104 --> 00:20:33,232 [ laughs ] Everything is awful." 431 00:20:33,273 --> 00:20:36,568 dramatic music plays 432 00:20:36,610 --> 00:20:40,739 [Tumulty] She sets about to redecorate the White House-- 433 00:20:40,781 --> 00:20:44,117 something that Jackie Kennedy had done in the Camelot era 434 00:20:44,159 --> 00:20:49,539 and had been acclaimed for, but this isn't Camelot. 435 00:20:49,581 --> 00:20:54,586 Mrs. Kennedy went after historical aspects 436 00:20:54,628 --> 00:20:58,423 and made the White House a museum. 437 00:20:58,465 --> 00:21:00,259 [man] Can you make these changes, 438 00:21:00,300 --> 00:21:04,513 uh, according to your own personal tastes and desires? 439 00:21:04,554 --> 00:21:07,724 Well, no, I, uh, have a committee, 440 00:21:07,766 --> 00:21:09,601 which has museum experts 441 00:21:09,643 --> 00:21:12,604 and government people and private citizens on it. 442 00:21:12,646 --> 00:21:15,274 And then everything we do is subject to approval 443 00:21:15,315 --> 00:21:17,567 by the Fine Arts Committee. 444 00:21:17,609 --> 00:21:21,613 [Kelley] With Nancy, most of the money went 445 00:21:21,655 --> 00:21:25,492 into the second and third floors in the White House, 446 00:21:25,534 --> 00:21:28,495 which are not public rooms. 447 00:21:28,537 --> 00:21:31,581 This was interpreted as making the White House 448 00:21:31,623 --> 00:21:34,501 better for herself. 449 00:21:34,543 --> 00:21:38,255 [woman] The country is headed into the worst recession 450 00:21:38,297 --> 00:21:40,340 since The Great Depression, 451 00:21:40,382 --> 00:21:42,509 and as the Reagan administration 452 00:21:42,551 --> 00:21:44,469 is cutting social programs, 453 00:21:44,511 --> 00:21:47,973 as people are really struggling in their own lives, 454 00:21:48,015 --> 00:21:50,767 they see the First Lady redecorating, 455 00:21:50,809 --> 00:21:53,270 renovating the White House. 456 00:21:53,312 --> 00:21:56,148 It was really tone-deaf. 457 00:21:56,189 --> 00:21:58,525 Some people say if the poor family 458 00:21:58,567 --> 00:22:00,777 on food stamps has to tighten its belt, 459 00:22:00,819 --> 00:22:02,237 wouldn't it be a good example for the Reagans 460 00:22:02,279 --> 00:22:03,947 to tighten their belt? 461 00:22:03,989 --> 00:22:06,074 We've tightened our belts in many ways. 462 00:22:06,116 --> 00:22:08,243 How? 463 00:22:08,285 --> 00:22:12,205 Well, we're not making any money here. [laughs] 464 00:22:13,999 --> 00:22:17,836 [jet engine whirring] 465 00:22:17,878 --> 00:22:20,005 [man] 5 Golf, Yankee, standby 120. 466 00:22:20,047 --> 00:22:21,840 Course runway 22 out at Foxtrot, 467 00:22:21,882 --> 00:22:23,675 right in ground point on. 468 00:22:23,717 --> 00:22:25,927 [Wiley] Reagan understood 469 00:22:25,969 --> 00:22:28,930 that part of supporting corporate power 470 00:22:28,972 --> 00:22:31,516 was going after the labor movement. 471 00:22:31,558 --> 00:22:34,519 [chanting] The workers united will never be defeated. 472 00:22:34,561 --> 00:22:36,688 [man] Air traffic controllers defied court orders 473 00:22:36,730 --> 00:22:39,691 grounding half the nation's commercial airline flights. 474 00:22:39,733 --> 00:22:42,736 [Wiley] If it weren't for the union movement, 475 00:22:42,778 --> 00:22:45,739 we wouldn't have the 40-hour work week. 476 00:22:45,781 --> 00:22:48,909 We wouldn't have benefits on the job like healthcare. 477 00:22:48,950 --> 00:22:51,203 [Alter] When he was running for President, 478 00:22:51,244 --> 00:22:54,206 Reagan could make it seem like he shared 479 00:22:54,247 --> 00:22:57,167 the interest and especially the values 480 00:22:57,209 --> 00:23:01,171 of union members and blue collar workers. 481 00:23:01,213 --> 00:23:04,549 And so he was able to say, "I'm one of you." 482 00:23:04,591 --> 00:23:06,885 I happen to be the only president 483 00:23:06,927 --> 00:23:09,805 of a union ever to be a candidate 484 00:23:09,846 --> 00:23:10,722 for President of the United States. 485 00:23:10,764 --> 00:23:13,058 [cheers and applause] 486 00:23:13,100 --> 00:23:16,728 [Lopez] Reagan turns against the idea of unions 487 00:23:16,770 --> 00:23:19,523 as he shifts his alliance to corporations, 488 00:23:19,564 --> 00:23:23,193 to capital, to big employers, to big money. 489 00:23:23,235 --> 00:23:25,237 The union representing those who man America's 490 00:23:25,278 --> 00:23:28,407 air traffic control facilities called a strike. 491 00:23:28,448 --> 00:23:30,659 They are in violation of the law, 492 00:23:30,700 --> 00:23:34,246 and if they do not report for work within 48 hours, 493 00:23:34,287 --> 00:23:38,750 they have forfeited their jobs and will be terminated. 494 00:23:38,792 --> 00:23:41,753 End of statement. 495 00:23:41,795 --> 00:23:45,090 [Baker] He fired 'em. It's what they deserved, 496 00:23:45,132 --> 00:23:48,260 and it was a wonderful thing that he did 497 00:23:48,301 --> 00:23:52,639 politically and substantively. 498 00:23:52,681 --> 00:23:56,393 After that, he looked powerful. 499 00:23:56,435 --> 00:24:00,772 [Stahl] In terms of his image, he looked very strong, 500 00:24:00,814 --> 00:24:03,442 but it was unbelievable because they were-- 501 00:24:03,483 --> 00:24:06,069 they were the people who kept the planes in the air. 502 00:24:06,111 --> 00:24:10,615 And it just devastated the union movement. 503 00:24:10,657 --> 00:24:14,995 That is when the union started to go into decline. 504 00:24:16,746 --> 00:24:18,290 [Shearer] It was a clear signal that Reagan 505 00:24:18,331 --> 00:24:23,211 was not gonna support any pro-labor legislation. 506 00:24:23,253 --> 00:24:25,589 He was gonna change the equation. 507 00:24:25,630 --> 00:24:30,802 He was gonna support the rise of corporate power. 508 00:24:30,844 --> 00:24:33,805 [Stahl] Once the workers lost power, 509 00:24:33,847 --> 00:24:36,725 they lost power to hold on 510 00:24:36,766 --> 00:24:40,395 to real economic gains for themselves. 511 00:24:43,190 --> 00:24:44,983 I can't believe the government is doing this to us, 512 00:24:45,025 --> 00:24:47,486 I don't think we're getting a fair deal out of it, 513 00:24:47,527 --> 00:24:50,322 but, uh, we're gonna stick with it till the end. 514 00:24:50,363 --> 00:24:52,991 If they won't make his working conditions better, 515 00:24:53,033 --> 00:24:54,951 maybe it's for the best. 516 00:24:54,993 --> 00:25:00,207 dramatic music plays 517 00:25:01,500 --> 00:25:03,418 [camera shutters clicking] 518 00:25:03,460 --> 00:25:06,838 [indistinct chatter] 519 00:25:06,880 --> 00:25:08,465 [Ronald] Hi. 520 00:25:08,507 --> 00:25:11,051 Everybody on and ready here? 521 00:25:11,092 --> 00:25:13,512 Yeah? Hmm... 522 00:25:16,181 --> 00:25:18,141 Well, we've been a long time. 523 00:25:18,183 --> 00:25:22,312 We've been decades coming to the point where we are. 524 00:25:22,354 --> 00:25:25,106 And you're not going to cure this overnight. 525 00:25:25,148 --> 00:25:27,692 And of course, the budget cuts in government, 526 00:25:27,734 --> 00:25:30,195 uh, are going to be felt as they begin 527 00:25:30,237 --> 00:25:32,656 to take place in the 1982 budget year 528 00:25:32,697 --> 00:25:35,659 that begins October 1st. 529 00:25:35,700 --> 00:25:37,827 [Stahl] When the budget was seen by everybody, 530 00:25:37,869 --> 00:25:40,664 people realized, he was cutting social programs. 531 00:25:40,705 --> 00:25:43,959 He was cutting programs for poor people. 532 00:25:44,000 --> 00:25:47,504 We were in recession, and it seemed out of sync 533 00:25:47,546 --> 00:25:50,340 with what was going on in the country. 534 00:25:50,382 --> 00:25:52,008 It was shocking. 535 00:25:52,050 --> 00:25:54,719 [Bill] The President and Congress have chosen 536 00:25:54,761 --> 00:25:56,429 not to offend the rich, the powerful, 537 00:25:56,471 --> 00:25:58,098 and the organized. 538 00:25:58,139 --> 00:26:00,392 It is easier to take on the weak. 539 00:26:00,433 --> 00:26:04,521 Social programs were cut almost $30 billion this year. 540 00:26:04,563 --> 00:26:06,565 The burden falls most heavily on the poor, 541 00:26:06,606 --> 00:26:09,609 and some of the truly needy are truly hurting. 542 00:26:09,651 --> 00:26:12,112 These programs are a life support system. 543 00:26:12,153 --> 00:26:15,448 For many, we are pulling the plug. 544 00:26:15,490 --> 00:26:18,952 [woman] I'd like to, um, apply for food stamps. 545 00:26:18,994 --> 00:26:22,038 [man] President Reagan cut Medicaid, 546 00:26:22,080 --> 00:26:25,000 cut aid to families with dependent children, 547 00:26:25,041 --> 00:26:28,670 student lunches, the food stamp program, 548 00:26:28,712 --> 00:26:31,673 and other New Deal programs 549 00:26:31,715 --> 00:26:35,343 that the most vulnerable were benefitting from. 550 00:26:35,385 --> 00:26:39,931 [Wiley] He cut things like the ability for a single mom 551 00:26:39,973 --> 00:26:44,185 to amass savings over a thousand dollars. 552 00:26:44,227 --> 00:26:48,273 So you actually saw women spending savings 553 00:26:48,315 --> 00:26:49,941 because they had no choice 554 00:26:49,983 --> 00:26:53,278 but to try to preserve their welfare checks. 555 00:26:53,320 --> 00:26:56,865 It had the exact opposite effect that it was supposed to have. 556 00:26:56,906 --> 00:26:58,950 And it was deeply cruel to them 557 00:26:58,992 --> 00:27:01,620 because it kept them on welfare. 558 00:27:01,661 --> 00:27:04,539 [woman] And this is supposed to be the land of opportunity. 559 00:27:04,581 --> 00:27:07,292 It's not anymore. It's not the land of opportunity. 560 00:27:07,334 --> 00:27:10,754 It's the land for the rich, and the poor can go to hell. 561 00:27:10,795 --> 00:27:13,214 I keep remembering what Milton Friedman once said, 562 00:27:13,256 --> 00:27:15,133 "If you start paying people to be poor, 563 00:27:15,175 --> 00:27:18,094 there is going to be a lot of poor people." 564 00:27:18,136 --> 00:27:20,930 [Lopez] It's a story that says to folks, 565 00:27:20,972 --> 00:27:22,891 "You should hate government 566 00:27:22,932 --> 00:27:25,143 because it's government that is theoretically 567 00:27:25,185 --> 00:27:27,145 reaching into your pockets 568 00:27:27,187 --> 00:27:29,105 to take your hard-earned dollars, 569 00:27:29,147 --> 00:27:30,982 and giving it away 570 00:27:31,024 --> 00:27:33,318 to these underserving people of color. 571 00:27:33,360 --> 00:27:37,405 So all of those social programs, defund them, 572 00:27:37,447 --> 00:27:40,742 because government's on the side of these underserving people. 573 00:27:40,784 --> 00:27:42,327 [woman] Showing his sense of humor, 574 00:27:42,369 --> 00:27:44,454 the president brought a knife 575 00:27:44,496 --> 00:27:46,581 to this important budget cutting session. 576 00:27:46,623 --> 00:27:48,124 [Wiley] I'll never forget, 577 00:27:48,166 --> 00:27:51,336 he did this masterful performance. 578 00:27:51,378 --> 00:27:56,007 He opens up the newspaper, and he starts reading want ads. 579 00:27:56,049 --> 00:28:00,512 I made it a point to count the pages of help wanted ads. 580 00:28:00,553 --> 00:28:02,972 In this time of great unemployment, 581 00:28:03,014 --> 00:28:07,936 there were 24 full pages of classified ads of employers 582 00:28:07,977 --> 00:28:10,271 looking for employees. 583 00:28:10,313 --> 00:28:13,775 And it was a great manipulation that told the American public, 584 00:28:13,817 --> 00:28:17,487 if they are not working, they just don't wanna work. 585 00:28:17,529 --> 00:28:18,905 [applause] 586 00:28:18,947 --> 00:28:20,615 At the same time, Reagan is choking 587 00:28:20,657 --> 00:28:22,701 and gutting programs 588 00:28:22,742 --> 00:28:26,246 that were trying to expand opportunity. 589 00:28:26,287 --> 00:28:28,289 The Reagan administration this afternoon 590 00:28:28,331 --> 00:28:31,334 unveiled its controversial new china policy, 591 00:28:31,376 --> 00:28:34,421 4,372 pieces of new china 592 00:28:34,462 --> 00:28:36,589 arrived in time for tonight's formal dinner 593 00:28:36,631 --> 00:28:38,633 for President Mubarak. 594 00:28:38,675 --> 00:28:42,679 [Mubarak] Let me first congratulate Mrs. Reagan 595 00:28:42,721 --> 00:28:44,055 for the new china, 596 00:28:44,097 --> 00:28:46,891 which is very elegant and very beautiful. 597 00:28:46,933 --> 00:28:49,227 [Tumulty] Nancy Reagan decides to buy 598 00:28:49,269 --> 00:28:53,231 a $1,000 a place setting china. 599 00:28:53,273 --> 00:28:56,693 This is announced on the very same day 600 00:28:56,735 --> 00:28:59,487 that the Reagan administration 601 00:28:59,529 --> 00:29:04,284 announces that for the purposes of the School Lunch Program, 602 00:29:04,325 --> 00:29:08,204 they are going to classify ketchup as a vegetable. 603 00:29:08,246 --> 00:29:10,957 Somebody got overambitious in the bureaucracy 604 00:29:10,999 --> 00:29:12,959 with their ketchup for a vegetable, 605 00:29:13,001 --> 00:29:15,170 and we had to pull back on some regulations 606 00:29:15,211 --> 00:29:17,464 that were suggested. 607 00:29:17,505 --> 00:29:19,966 The timing couldn't have been worse. 608 00:29:20,008 --> 00:29:22,302 [reporter] $1 billion dollars may be cut nationwide 609 00:29:22,343 --> 00:29:25,096 from School Lunch Programs in 1982. 610 00:29:25,138 --> 00:29:28,141 I accepted the donation because the White House 611 00:29:28,183 --> 00:29:30,977 needed china very, very badly. 612 00:29:31,019 --> 00:29:34,022 [Tumulty] The china purchase becomes a real metaphor 613 00:29:34,063 --> 00:29:37,192 for a lot of things that bother people 614 00:29:37,233 --> 00:29:41,613 about the Reagan administration and its policies. 615 00:29:41,654 --> 00:29:43,156 [reporter] There are more and more homeless people 616 00:29:43,198 --> 00:29:47,619 in America--perhaps two million and growing. 617 00:29:47,660 --> 00:29:51,206 [Wiley] Advocates had called for better forms 618 00:29:51,247 --> 00:29:53,708 of housing and services, 619 00:29:53,750 --> 00:29:55,460 and support for people who are poorest 620 00:29:55,502 --> 00:29:57,420 among us in this country, 621 00:29:57,462 --> 00:30:00,965 including and especially for people who are mentally ill. 622 00:30:01,007 --> 00:30:04,469 [Scheer] Reagan disparaged mental health facilities. 623 00:30:04,511 --> 00:30:08,139 He thought, you know, well, these people will find work, 624 00:30:08,181 --> 00:30:10,225 or they'll take pills. 625 00:30:10,266 --> 00:30:11,976 He was against helping them. 626 00:30:12,018 --> 00:30:15,480 [Alter] The homeless crisis we see today 627 00:30:15,522 --> 00:30:19,359 accelerated on Reagan's watch. 628 00:30:19,400 --> 00:30:21,319 The people who are sleeping on the grates, 629 00:30:21,361 --> 00:30:24,656 the homeless who are homeless, you might say, by choice. 630 00:30:24,697 --> 00:30:27,325 [Johnson] Reagan would tell the American public 631 00:30:27,367 --> 00:30:29,327 that many of the ways that people in America 632 00:30:29,369 --> 00:30:32,455 were suffering was because they chose to suffer 633 00:30:32,497 --> 00:30:34,165 and the problem was a moral failure, 634 00:30:34,207 --> 00:30:36,167 not a structural one. 635 00:30:36,209 --> 00:30:38,336 [Wiley] Reagan was deeply invested 636 00:30:38,378 --> 00:30:40,296 in being the good guy. 637 00:30:40,338 --> 00:30:43,716 That was an image he actively cultivated. 638 00:30:43,758 --> 00:30:46,970 So he wanted to disconnect 639 00:30:47,011 --> 00:30:49,055 the very real human pain 640 00:30:49,097 --> 00:30:52,225 that was now visible on streets with the policies 641 00:30:52,267 --> 00:30:56,563 that were central to his presidency. 642 00:30:56,604 --> 00:30:58,857 We believe that there was a mandate last fall. 643 00:30:58,898 --> 00:31:01,192 And that mandate was for cutting spending, 644 00:31:01,234 --> 00:31:04,028 not raising taxes. 645 00:31:04,070 --> 00:31:05,154 I think you've been brilliant, 646 00:31:05,196 --> 00:31:06,781 but I also think you've been cruel, 647 00:31:06,823 --> 00:31:08,700 and I think you've been inhumane, 648 00:31:08,741 --> 00:31:13,663 and I think you are causing a perversion of justice 649 00:31:13,705 --> 00:31:17,375 for the poor and middle class Americans. 650 00:31:17,417 --> 00:31:20,044 [Stahl] It kind of hit the country with a jolt, 651 00:31:20,086 --> 00:31:21,713 and he would make these cuts, 652 00:31:21,754 --> 00:31:24,716 and they seemed callous, 653 00:31:24,757 --> 00:31:29,554 and yet there he was, sunny, smiling. 654 00:31:29,596 --> 00:31:32,724 And so it just didn't compute that 655 00:31:32,765 --> 00:31:36,185 that man could make these cuts. 656 00:31:36,227 --> 00:31:38,062 [sirens wailing] 657 00:31:38,104 --> 00:31:40,440 [woman] This was one presidential trip 658 00:31:40,481 --> 00:31:41,900 that had not been announced. 659 00:31:41,941 --> 00:31:43,568 The Reagans had a dinner engagement 660 00:31:43,610 --> 00:31:46,696 with the President's second grade pen pal, Rudy Hines. 661 00:31:46,738 --> 00:31:49,407 [Ron Jr.] My father had a hard time feeling empathy 662 00:31:49,449 --> 00:31:52,577 for groups of people. 663 00:31:52,619 --> 00:31:54,245 You could think about welfare recipients, 664 00:31:54,287 --> 00:31:57,373 for instance, as just this sort of amorphous mass 665 00:31:57,415 --> 00:32:00,585 of lazy people who don't wanna work. 666 00:32:00,627 --> 00:32:03,254 And therefore, he could be, you know, tough on them. 667 00:32:03,296 --> 00:32:05,673 But when it came to an individual, 668 00:32:05,715 --> 00:32:07,717 he was actually rather big-hearted. 669 00:32:07,759 --> 00:32:11,554 [Alter] He was personally compassionate, 670 00:32:11,596 --> 00:32:12,889 but he didn't understand 671 00:32:12,931 --> 00:32:16,184 that personal compassion isn't meaningful 672 00:32:16,225 --> 00:32:19,270 without public compassion if you're president. 673 00:32:19,312 --> 00:32:23,608 [Stahl] I had the impression he was not educating himself 674 00:32:23,650 --> 00:32:27,946 on what was really happening to people around the country. 675 00:32:27,987 --> 00:32:30,448 Among those filing claims recently was this man. 676 00:32:30,490 --> 00:32:32,784 [Ron Jr.] Laid off until October 25th. 677 00:32:32,825 --> 00:32:35,954 As far as I know, everybody's collecting unemployment. 678 00:32:35,995 --> 00:32:37,622 I am, too. 679 00:32:37,664 --> 00:32:39,582 I used to get into arguments sometimes with my father, 680 00:32:39,624 --> 00:32:41,626 and you would think, well, 681 00:32:41,668 --> 00:32:45,129 I'm gonna now introduce him to a new set of facts. 682 00:32:45,171 --> 00:32:48,007 He would listen, somewhat reluctantly, 683 00:32:48,049 --> 00:32:50,426 to what I would think are, you know, 684 00:32:50,468 --> 00:32:52,929 incontrovertible facts. 685 00:32:52,971 --> 00:32:54,597 And then, you would get to that point 686 00:32:54,639 --> 00:32:57,016 where he would throw up his hands and say, 687 00:32:57,058 --> 00:33:00,603 "Well, all I know is..." 688 00:33:00,645 --> 00:33:03,898 and he'd sort of push away like this with his hands, 689 00:33:03,940 --> 00:33:08,569 which was really, keep that reality away from me. 690 00:33:08,611 --> 00:33:09,988 I do not want that near me now. 691 00:33:10,029 --> 00:33:13,825 It's--It's upsetting my whole picture of America, 692 00:33:13,866 --> 00:33:17,161 myself, whatever it might be. 693 00:33:17,203 --> 00:33:19,080 And you'd say, "Well, that's the point. 694 00:33:19,122 --> 00:33:20,456 All you know is this, 695 00:33:20,498 --> 00:33:22,083 but this turns out to be incomplete, at best. 696 00:33:22,125 --> 00:33:23,334 So what about all this other stuff?" 697 00:33:23,376 --> 00:33:26,838 "Well, all I know is..." 698 00:33:29,173 --> 00:33:31,300 [man] Mrs. Reagan, are you looking forward 699 00:33:31,342 --> 00:33:33,845 to the wedding? -Yes, I certainly am. 700 00:33:33,886 --> 00:33:36,639 [narrator] The wedding guests assembled, 701 00:33:36,681 --> 00:33:38,307 not just the famous 702 00:33:38,349 --> 00:33:40,018 like Prime Minister Margaret Thatcher 703 00:33:40,059 --> 00:33:42,186 and Mrs. Nancy Reagan, wife of the American President, 704 00:33:42,228 --> 00:33:45,189 but personal and family friends as well. 705 00:33:45,231 --> 00:33:48,234 [Stahl] We were going through those difficult times, 706 00:33:48,276 --> 00:33:51,738 and there was Nancy showing off diamonds. 707 00:33:51,779 --> 00:33:55,533 She was wearing clothes that designers were lending 708 00:33:55,575 --> 00:33:57,910 and then ended up giving her. 709 00:33:57,952 --> 00:34:01,748 [Kelley] We're talking millions of dollars as gifts. 710 00:34:01,789 --> 00:34:04,292 Nancy got to wear the clothes and look good, 711 00:34:04,333 --> 00:34:07,086 and they got exposure and publicity. 712 00:34:07,128 --> 00:34:10,256 It was a wonderful relationship, 713 00:34:10,298 --> 00:34:15,970 except for one little thing. It was against the law. 714 00:34:16,012 --> 00:34:18,723 She never reported these things as a gift. 715 00:34:18,765 --> 00:34:21,184 [man] Mrs. Reagan's Press Secretary today admitted 716 00:34:21,225 --> 00:34:23,895 the First Lady does borrow designer fashions 717 00:34:23,936 --> 00:34:25,855 without reporting them. 718 00:34:25,897 --> 00:34:28,566 [Tumulty] Taking free designer clothes 719 00:34:28,608 --> 00:34:32,070 is something that doesn't raise eyebrows in Hollywood. 720 00:34:32,111 --> 00:34:33,738 She discovers this can get you 721 00:34:33,780 --> 00:34:35,656 in a lot of trouble in Washington. 722 00:34:35,698 --> 00:34:37,700 laughter] 723 00:34:37,742 --> 00:34:39,744 [man] Within months, she had grown sensitive 724 00:34:39,786 --> 00:34:42,330 about even mentioning her clothes. 725 00:34:46,417 --> 00:34:47,919 Are we still on? 726 00:34:47,960 --> 00:34:50,421 [Tumulty] The White House Counsel would send somebody, 727 00:34:50,463 --> 00:34:53,925 at least once a year, to the family quarters, 728 00:34:53,966 --> 00:34:55,718 just to be on the lookout for gifts 729 00:34:55,760 --> 00:34:58,096 that they don't know about. 730 00:34:58,137 --> 00:35:01,057 The White House quietly announces 731 00:35:01,099 --> 00:35:05,603 that she will no longer be taking these free clothes. 732 00:35:05,645 --> 00:35:10,817 Ultimately, it is revealed that that's a promise she broke. 733 00:35:10,858 --> 00:35:13,444 dramatic music plays 734 00:35:13,486 --> 00:35:18,282 [Kelley] Nancy Reagan had a sense of entitlement, 735 00:35:18,324 --> 00:35:22,620 and she was criticized as this imperious queen. 736 00:35:22,662 --> 00:35:26,958 [Nancy] There is now a picture postcard of me as a queen. 737 00:35:26,999 --> 00:35:32,463 Now, that's silly because I'd never wear a crown. 738 00:35:32,505 --> 00:35:34,132 It messes up your hair. 739 00:35:34,173 --> 00:35:35,758 [laughter] 740 00:35:35,800 --> 00:35:38,636 [Tumulty] At the end of that first year, 741 00:35:38,678 --> 00:35:43,266 she finds herself the most unpopular 742 00:35:43,307 --> 00:35:46,144 First Lady in the polls in modern history. 743 00:35:46,185 --> 00:35:48,729 I guess what you really want for Christmas 744 00:35:48,771 --> 00:35:52,400 is for the press to take a fresh look at you. 745 00:35:54,026 --> 00:35:56,362 That would be nice. [chuckles] 746 00:35:56,404 --> 00:35:59,115 [indistinct conversations] 747 00:35:59,157 --> 00:36:03,202 [applause] 748 00:36:05,329 --> 00:36:09,417 [Ronald] And I'm delighted to be here with Heritage. 749 00:36:09,458 --> 00:36:10,877 I remember the days when a conservative intellectual 750 00:36:10,918 --> 00:36:14,255 was considered a contradiction in terms. 751 00:36:14,297 --> 00:36:16,841 [laughter] 752 00:36:16,883 --> 00:36:19,302 [Alter] The Kitchen Cabinet and the other business leaders 753 00:36:19,343 --> 00:36:21,679 who loved Reagan-- 754 00:36:21,721 --> 00:36:25,349 they didn't love him because they liked his movies. 755 00:36:25,391 --> 00:36:28,936 They loved him because he was the front man 756 00:36:28,978 --> 00:36:31,022 for their ideas. 757 00:36:31,063 --> 00:36:33,691 [Lopez] Government is a threat to the very wealthy. 758 00:36:33,733 --> 00:36:35,818 It taxes them. It regulates them. 759 00:36:35,860 --> 00:36:38,321 It creates alternative sources of power. 760 00:36:38,362 --> 00:36:41,115 So they're trying to support politicians 761 00:36:41,157 --> 00:36:44,785 who promote a set of economic policies 762 00:36:44,827 --> 00:36:46,871 that actually hands government over 763 00:36:46,913 --> 00:36:48,372 to the control of corporations. 764 00:36:48,414 --> 00:36:50,374 I'd like to get rid of several thousand 765 00:36:50,416 --> 00:36:53,711 of what I think are unnecessary regulations 766 00:36:53,753 --> 00:36:56,380 that have caused your problems. [applause] 767 00:36:56,422 --> 00:36:58,758 [Scheer] What he was told at every business meeting 768 00:36:58,799 --> 00:37:00,968 he'd ever gone to when he was with GE 769 00:37:01,010 --> 00:37:03,054 or anywhere else, 770 00:37:03,095 --> 00:37:05,973 is the government--they require all these regulations. 771 00:37:06,015 --> 00:37:08,643 It costs us so much money, and we can't do our work. 772 00:37:08,684 --> 00:37:11,604 We'd hear this all the time, and he would soak it up. 773 00:37:11,646 --> 00:37:12,855 You know, aren't you really talking 774 00:37:12,897 --> 00:37:14,690 about coddling big business? 775 00:37:14,732 --> 00:37:15,983 No. Not coddling at all. 776 00:37:16,025 --> 00:37:18,277 As a matter of fact, our government has 777 00:37:18,319 --> 00:37:20,071 a hostile adversary relationship with business. 778 00:37:20,112 --> 00:37:22,406 [Alter] Reagan ended up appointing 779 00:37:22,448 --> 00:37:25,534 a lot of third-rate people 780 00:37:25,576 --> 00:37:27,954 to important positions who often didn't believe 781 00:37:27,995 --> 00:37:31,249 in the mission of their department. 782 00:37:31,290 --> 00:37:33,000 [man] Interior Secretary James Watt 783 00:37:33,042 --> 00:37:34,669 has already tried to clear the way 784 00:37:34,710 --> 00:37:36,921 for more mining and development of federal land, 785 00:37:36,963 --> 00:37:39,340 has proposed cutbacks in national parks, 786 00:37:39,382 --> 00:37:41,926 and is ordered a speed up in the controversial program 787 00:37:41,968 --> 00:37:44,512 to encourage offshore oil and gas drilling. 788 00:37:44,553 --> 00:37:48,015 [Alter] It wasn't just foxes guarding the chicken coop. 789 00:37:48,057 --> 00:37:50,935 It was that they would dismantle the chicken coop. 790 00:37:50,977 --> 00:37:52,228 [man] Here are just a few 791 00:37:52,270 --> 00:37:53,604 of the regulations under review-- 792 00:37:53,646 --> 00:37:56,274 rules on contents of pesticide, 793 00:37:56,315 --> 00:37:59,026 rules on handling chemical waste. 794 00:37:59,068 --> 00:38:03,864 [man] A rule to install airbags was killed by President Reagan. 795 00:38:03,906 --> 00:38:06,284 A rule that would have required special elevators 796 00:38:06,325 --> 00:38:08,661 and subway stations to help handicap people 797 00:38:08,703 --> 00:38:11,998 get on and off trains was rescinded. 798 00:38:12,039 --> 00:38:14,375 [Johnson] Deregulation at its core 799 00:38:14,417 --> 00:38:17,211 is about allowing the rich and powerful 800 00:38:17,253 --> 00:38:19,046 to expand their power. 801 00:38:19,088 --> 00:38:21,799 It also means that there is no one monitoring 802 00:38:21,841 --> 00:38:24,010 the behavior of these economic actors. 803 00:38:24,051 --> 00:38:26,053 We're going to turn the bull loose. 804 00:38:26,095 --> 00:38:28,014 [crowd cheering] 805 00:38:28,055 --> 00:38:30,391 [crowd chanting indistinctly] 806 00:38:30,433 --> 00:38:32,476 [bell dinging] 807 00:38:32,518 --> 00:38:34,770 [cheers and applause] 808 00:38:49,618 --> 00:38:52,663 [Nancy] Did all of you start first on pot? 809 00:38:52,705 --> 00:38:56,083 [man] How many started on pot? Hands up. 810 00:38:56,125 --> 00:38:59,086 [Nancy] I'm very much interested in, 811 00:38:59,128 --> 00:39:00,546 and concerned about, 812 00:39:00,588 --> 00:39:03,591 the whole drug problem in the country now. 813 00:39:03,632 --> 00:39:08,387 [Tumulty] There was always this belief with Nancy Reagan 814 00:39:08,429 --> 00:39:12,141 that things could always be rewritten, 815 00:39:12,183 --> 00:39:13,351 could be spun. 816 00:39:13,392 --> 00:39:14,852 [crowd chanting] 817 00:39:14,894 --> 00:39:16,270 [man] Those close to the First Lady 818 00:39:16,312 --> 00:39:18,272 hope she can leave unfavorable press accounts 819 00:39:18,314 --> 00:39:20,316 of her high style of life behind, 820 00:39:20,358 --> 00:39:22,485 as she continues to become involved. 821 00:39:22,526 --> 00:39:23,944 [man] Do you think you're more self-confident? 822 00:39:23,986 --> 00:39:28,657 Yes, because I think maybe more people like me. 823 00:39:28,699 --> 00:39:30,159 [chuckles] 824 00:39:30,201 --> 00:39:34,455 If someone offers you drugs, what will you do? 825 00:39:34,497 --> 00:39:38,042 [crowd] Just say no! 826 00:39:38,084 --> 00:39:41,128 She believed that you could knock your drug problem. 827 00:39:41,170 --> 00:39:42,963 "Just say no." 828 00:39:43,005 --> 00:39:46,634 Just chew your food 43 times, 829 00:39:46,675 --> 00:39:49,804 and you'll never weigh more than 90 pounds. 830 00:39:49,845 --> 00:39:53,808 The discipline, the control of this woman. 831 00:39:53,849 --> 00:39:57,561 [Wiley] Just like Ronald Reagan wrapping himself 832 00:39:57,603 --> 00:39:59,563 in the fatherly mantle, 833 00:39:59,605 --> 00:40:02,733 she was wrapping herself in the mother-y gauze 834 00:40:02,775 --> 00:40:06,070 of loving advice. 835 00:40:06,112 --> 00:40:08,906 Let's practice saying, "Just say no." 836 00:40:08,948 --> 00:40:11,242 [Wiley] Just stay off those drugs. 837 00:40:11,283 --> 00:40:14,745 We will ignore all the things that are creating a problem 838 00:40:14,787 --> 00:40:16,580 and make it clear 839 00:40:16,622 --> 00:40:20,084 that if you are still doing it, it's 'cause you chose to. 840 00:40:20,126 --> 00:40:23,921 If you're a casual drug user, you're an accomplice to murder. 841 00:40:23,963 --> 00:40:26,590 [Johnson] When she said, "Say no to drugs," 842 00:40:26,632 --> 00:40:29,427 you know who she was not pictured with? 843 00:40:29,468 --> 00:40:31,595 The yuppies who are doing lines of coke 844 00:40:31,637 --> 00:40:34,223 off the back of prostitutes throughout the 1980s. 845 00:40:34,265 --> 00:40:36,767 And yet, crack cocaine, 846 00:40:36,809 --> 00:40:38,769 which was "poor people's cocaine" 847 00:40:38,811 --> 00:40:42,273 and other forms of drugs, were considered to be the enemy. 848 00:40:42,314 --> 00:40:44,442 Those various centers that you've gone to, 849 00:40:44,483 --> 00:40:46,277 it's been pointed out. 850 00:40:46,318 --> 00:40:49,321 Your husband is asking that funds be cut 851 00:40:49,363 --> 00:40:51,407 from those very centers. 852 00:40:51,449 --> 00:40:53,284 You know, we've gotten into a terrible-- 853 00:40:53,325 --> 00:40:57,455 I think into a terrible, um, habit. 854 00:40:57,496 --> 00:41:00,791 Somebody will say, "We have a problem," 855 00:41:00,833 --> 00:41:04,795 whatever it may be, and the immediate response is, 856 00:41:04,837 --> 00:41:06,964 "Well, can't the government do something about that?" 857 00:41:07,006 --> 00:41:08,299 Instead of, 858 00:41:08,340 --> 00:41:11,135 "Can't I do something about that?" 859 00:41:11,177 --> 00:41:13,095 [Johnson] The Reagan administration 860 00:41:13,137 --> 00:41:14,638 decided that the only way that you could deal 861 00:41:14,680 --> 00:41:17,475 with drug addicts was not to address unemployment, 862 00:41:17,516 --> 00:41:19,435 not to address violence, 863 00:41:19,477 --> 00:41:21,979 lack of opportunity, or better healthcare. 864 00:41:22,021 --> 00:41:26,317 It was simply throwing people in jail. 865 00:41:26,358 --> 00:41:28,986 The report out tonight shows the United States 866 00:41:29,028 --> 00:41:31,197 has a larger percentage of its citizens 867 00:41:31,238 --> 00:41:34,325 in prison than any other country. 868 00:41:34,366 --> 00:41:36,368 And the Americans most likely to be in prison? 869 00:41:36,410 --> 00:41:38,037 They're Black. 870 00:41:38,078 --> 00:41:40,831 The war on drugs was really a war 871 00:41:40,873 --> 00:41:43,375 on Black and brown people in this country. 872 00:41:43,417 --> 00:41:46,337 We were taking precious dollars, 873 00:41:46,378 --> 00:41:49,173 and instead of creating communities of hope, 874 00:41:49,215 --> 00:41:51,884 we created communities of criminalization. 875 00:41:51,926 --> 00:41:54,053 [man] Most experts believe we're worse off now 876 00:41:54,094 --> 00:41:55,721 than when Reagan took office, 877 00:41:55,763 --> 00:41:57,473 this despite $21 1/2 billion 878 00:41:57,515 --> 00:41:59,767 and despite Mrs. Reagan's highly publicized 879 00:41:59,808 --> 00:42:02,811 but sadly ineffective anti-drug campaign. 880 00:42:02,853 --> 00:42:05,105 When it comes to drugs and alcohol, 881 00:42:05,147 --> 00:42:06,440 just say no. 882 00:42:06,482 --> 00:42:10,694 God bless you and good night. 883 00:42:13,864 --> 00:42:16,951 Reagan was cutting programs on the social side 884 00:42:16,992 --> 00:42:20,454 and increasing the budget enormously 885 00:42:20,496 --> 00:42:23,207 on the Pentagon side of things on defense. 886 00:42:23,249 --> 00:42:26,835 [marching band playing] 887 00:42:26,877 --> 00:42:28,796 [Alter] Reagan had campaigned on building 888 00:42:28,837 --> 00:42:32,716 a stronger military. 889 00:42:32,758 --> 00:42:36,595 So the ideology kind of crowded out 890 00:42:36,637 --> 00:42:40,849 a clear-eyed analysis of what was actually needed 891 00:42:40,891 --> 00:42:42,560 to protect the country. 892 00:42:42,601 --> 00:42:45,771 [Ronald] We must immediately start a rebuilding 893 00:42:45,813 --> 00:42:47,690 of our defensive capability 894 00:42:47,731 --> 00:42:49,567 to the point that no nation on this Earth 895 00:42:49,608 --> 00:42:51,277 would dare lift a hand against us. 896 00:42:51,318 --> 00:42:53,112 [cheers and applause] 897 00:42:53,153 --> 00:42:54,738 [Adelman] Reagan's view was 898 00:42:54,780 --> 00:42:58,409 we need to spend on defense to protect America. 899 00:42:58,450 --> 00:42:59,910 The Soviets wanna match us on that, 900 00:42:59,952 --> 00:43:03,038 that will spend them into oblivion. 901 00:43:03,080 --> 00:43:04,707 And that wasn't what the CIA was saying. 902 00:43:04,748 --> 00:43:07,876 What the CIA was saying was, since the end of the '70s, 903 00:43:07,918 --> 00:43:10,879 Soviet spending was pretty steady line 904 00:43:10,921 --> 00:43:13,257 regardless of the United States budget. 905 00:43:13,299 --> 00:43:16,260 But Reagan's view was different from that. 906 00:43:16,302 --> 00:43:18,929 I don't know if he knew what the CIA estimates were. 907 00:43:18,971 --> 00:43:20,723 He probably didn't. 908 00:43:20,764 --> 00:43:22,224 [Johnson] Our greatest military adversary 909 00:43:22,266 --> 00:43:23,892 was basically broke. 910 00:43:23,934 --> 00:43:25,936 The Soviet Union was collapsing upon itself 911 00:43:25,978 --> 00:43:27,730 because of grotesque incompetence 912 00:43:27,771 --> 00:43:29,773 and mismanagement of their economy. 913 00:43:29,815 --> 00:43:32,943 So our spending was just expanding 914 00:43:32,985 --> 00:43:34,737 the military industrial complex. 915 00:43:34,778 --> 00:43:36,614 [man] Defense Secretary Caspar Weinberger 916 00:43:36,655 --> 00:43:39,283 has been rebuilding America's military, 917 00:43:39,325 --> 00:43:41,118 with a philosophy of peace through strength, 918 00:43:41,160 --> 00:43:43,329 strength through money. 919 00:43:43,370 --> 00:43:45,789 [Shearer] Peace through strength-- 920 00:43:45,831 --> 00:43:49,126 it was a convenient and brilliant cover, 921 00:43:49,168 --> 00:43:52,504 use government spending for the military, 922 00:43:52,546 --> 00:43:56,258 then you could starve the rest of the government. 923 00:43:56,300 --> 00:43:57,593 -Hi, Bobby. How are you? -A pleasure. 924 00:43:57,635 --> 00:43:58,510 What's someone gonna do with landing gear 925 00:43:58,552 --> 00:43:59,970 in the backyard? -I had a friend 926 00:44:00,012 --> 00:44:02,181 who sold $100 million or roughly close to it. 927 00:44:02,222 --> 00:44:05,809 [Alter] Defense contractors and the Defense Department 928 00:44:05,851 --> 00:44:09,813 all reinforced each other to spend taxpayer money. 929 00:44:09,855 --> 00:44:12,232 All of Reagan's fiscal prudence 930 00:44:12,274 --> 00:44:15,152 and efficiency went out the window. 931 00:44:15,194 --> 00:44:16,945 [man] The senior official recently said 932 00:44:16,987 --> 00:44:18,822 that military contractors could cut up 933 00:44:18,864 --> 00:44:21,492 to 50% from their cost. 934 00:44:21,533 --> 00:44:24,828 But this is not a system likely to enforce such discipline. 935 00:44:24,870 --> 00:44:28,290 [Wiley] Reagan kept talking about limited government, 936 00:44:28,332 --> 00:44:30,668 but then, essentially created government 937 00:44:30,709 --> 00:44:33,754 of military might and power, 938 00:44:33,796 --> 00:44:37,174 not a government of investing in people. 939 00:44:37,216 --> 00:44:42,304 Let friend and foe alike know that America has the muscle 940 00:44:42,346 --> 00:44:43,681 to back up its words, 941 00:44:43,722 --> 00:44:47,017 and ships like this and men like you 942 00:44:47,059 --> 00:44:49,228 are that muscle. 943 00:44:49,269 --> 00:44:51,522 [loud cheers and applause] 944 00:44:51,563 --> 00:44:54,733 [indistinct chatter] 945 00:44:54,775 --> 00:44:57,361 Now, I imagine you have a few things on your mind 946 00:44:57,403 --> 00:44:59,697 that you would like to talk about, Gary. 947 00:44:59,738 --> 00:45:01,949 Mr. President, the polls continue to show 948 00:45:01,990 --> 00:45:05,119 that between 60 and 70% of the people 949 00:45:05,160 --> 00:45:09,707 still consider you to be a rich man's president 950 00:45:09,748 --> 00:45:12,000 with no idea of what the people who aren't wealthy 951 00:45:12,042 --> 00:45:13,585 are going through out there. 952 00:45:13,627 --> 00:45:15,754 How does that make you feel? 953 00:45:15,796 --> 00:45:17,506 dramatic music plays 954 00:45:17,548 --> 00:45:19,883 I just--my feeling, 955 00:45:19,925 --> 00:45:21,885 and it's very deep within me, is this. 956 00:45:21,927 --> 00:45:24,847 No, the rich don't need my help. 957 00:45:24,888 --> 00:45:27,891 And I'm not doing things to help the rich. 958 00:45:27,933 --> 00:45:30,227 I'm doing things that I think are fair 959 00:45:30,269 --> 00:45:32,521 to all the people. 960 00:45:32,563 --> 00:45:35,065 [Ron Jr.] It was one of those things where facts and evidence 961 00:45:35,107 --> 00:45:38,360 didn't seem to carry the day. 962 00:45:38,402 --> 00:45:41,405 He liked the idea that if you let people, 963 00:45:41,447 --> 00:45:44,241 meaning rich people, hang on to more of their money, 964 00:45:44,283 --> 00:45:48,912 that somehow this will benefit all of society, you know? 965 00:45:48,954 --> 00:45:50,914 [scoffs] No, it doesn't. [laughs] We know that. 966 00:45:50,956 --> 00:45:52,916 But, you know, you'd run into that, 967 00:45:52,958 --> 00:45:55,419 "All I know is..." 968 00:45:55,461 --> 00:45:58,213 [Ronald] What I want to see above all is, 969 00:45:58,255 --> 00:46:00,758 that this country remains a country 970 00:46:00,799 --> 00:46:04,261 where someone can always get rich. 971 00:46:04,303 --> 00:46:06,930 That's the thing that we have and that must be preserved. 972 00:46:06,972 --> 00:46:09,057 Now, I don't know 973 00:46:09,099 --> 00:46:13,353 how much, uh, more I can do, um, on this subject. 974 00:46:13,395 --> 00:46:14,938 I thought I had another line there for a minute 975 00:46:14,980 --> 00:46:17,107 that I was gonna, uh, gonna use, 976 00:46:17,149 --> 00:46:19,318 but maybe it's just as well that I don't use it. 977 00:46:21,737 --> 00:46:23,697 [Alter] The beginning of the end 978 00:46:23,739 --> 00:46:28,118 for the American middle class was in the 1980s. 979 00:46:28,160 --> 00:46:31,789 The economic idea that Ronald Reagan believed in 980 00:46:31,830 --> 00:46:35,209 turned out to not be true. 981 00:46:35,250 --> 00:46:38,712 No argument available on the other side 982 00:46:38,754 --> 00:46:40,464 because enough time has passed 983 00:46:40,506 --> 00:46:43,634 that history has rendered a verdict. 984 00:46:43,675 --> 00:46:47,137 How come no one calls it Reaganomics anymore? 985 00:46:47,179 --> 00:46:48,972 [laughter and applause] 986 00:46:49,014 --> 00:46:51,058 I never did call it that. 987 00:46:51,099 --> 00:46:53,977 That was their name when they thought it wouldn't work. 988 00:46:54,019 --> 00:46:56,897 I just called it common sense. 989 00:46:56,939 --> 00:46:58,315 [Stahl] Even from within the White House, 990 00:46:58,357 --> 00:47:01,527 people like the budget director, Stockman, 991 00:47:01,568 --> 00:47:04,029 began to say, "This idea is faulty." 992 00:47:04,071 --> 00:47:06,156 [man] David Stockman found that the complexities 993 00:47:06,198 --> 00:47:09,284 of tax policy worked simply beyond the president. 994 00:47:09,326 --> 00:47:12,371 So he ignored the facts and wandered in circles. 995 00:47:12,412 --> 00:47:13,831 [Cannon] Stockman said, "Ronald Reagan doesn't know 996 00:47:13,872 --> 00:47:16,208 what he's doing." 997 00:47:16,250 --> 00:47:18,126 It was an eye-opener into the cynicism 998 00:47:18,168 --> 00:47:22,130 of the budget policies of the Reagan administration. 999 00:47:22,172 --> 00:47:23,465 There is plenty of blame to go around, 1000 00:47:23,507 --> 00:47:25,467 starting with me. 1001 00:47:25,509 --> 00:47:29,638 And there are plenty of serious problems 1002 00:47:29,680 --> 00:47:31,598 lurking in the future 1003 00:47:31,640 --> 00:47:35,310 that simply aren't being addressed in the present time. 1004 00:47:35,352 --> 00:47:37,521 [Johnson] The economy did improve, 1005 00:47:37,563 --> 00:47:41,817 but it improved for people who already had money. 1006 00:47:41,859 --> 00:47:43,861 That did nothing to lift anyone out of poverty. 1007 00:47:43,902 --> 00:47:45,612 And that is the part of the Reagan revolution 1008 00:47:45,654 --> 00:47:49,366 economically that people conveniently ignore 1009 00:47:49,408 --> 00:47:53,120 in order to maintain the myth of the Reagan presidency. 1010 00:47:53,161 --> 00:47:56,874 [Lopez] We have high levels of equal wealth distribution 1011 00:47:56,915 --> 00:47:59,626 running through the 1970s. 1012 00:47:59,668 --> 00:48:03,797 And then, under Ronald Reagan, you see the curve of wealth 1013 00:48:03,839 --> 00:48:07,259 inequality begin to go skyward, 1014 00:48:07,301 --> 00:48:08,927 as the one percent and the one-tenth percent 1015 00:48:08,969 --> 00:48:10,637 begin to take more and more 1016 00:48:10,679 --> 00:48:12,931 and more of the country's wealth. 1017 00:48:12,973 --> 00:48:15,058 [Brown] At a time when we need national unity, 1018 00:48:15,100 --> 00:48:17,394 more than ever before, we are experiencing 1019 00:48:17,436 --> 00:48:20,063 a growing division 1020 00:48:20,105 --> 00:48:23,609 because of this transfer of wealth 1021 00:48:23,650 --> 00:48:25,110 from the working poor to the working rich 1022 00:48:25,152 --> 00:48:27,988 and the non-working rich. 1023 00:48:28,030 --> 00:48:30,449 [Lopez] Ronald Reagan initiates the process 1024 00:48:30,490 --> 00:48:32,743 by which government will take wealth 1025 00:48:32,784 --> 00:48:36,163 from working families, from the middle class, 1026 00:48:36,204 --> 00:48:37,956 and siphon it upwards. 1027 00:48:37,998 --> 00:48:42,377 He does so through tax policy, by cutting government programs 1028 00:48:42,419 --> 00:48:45,923 that helped the middle class by busting unions. 1029 00:48:45,964 --> 00:48:48,091 And now, we have the highest levels 1030 00:48:48,133 --> 00:48:51,428 of wealth inequality we've seen in a century. 1031 00:48:51,470 --> 00:48:53,096 [applause] 1032 00:48:53,138 --> 00:48:55,474 dramatic music plays 1033 00:48:58,644 --> 00:49:00,103 [man] And action. 1034 00:49:00,145 --> 00:49:01,897 The kind of future our young people will have 1035 00:49:01,939 --> 00:49:05,192 is something you never forget when you live here. 1036 00:49:05,233 --> 00:49:09,029 [Khachigian] In the re-election campaign, 1037 00:49:09,071 --> 00:49:12,074 I was writing commercials more than speeches. 1038 00:49:12,115 --> 00:49:17,412 The message in 1984 was encapsulated 1039 00:49:17,454 --> 00:49:20,332 in that theme, "It's Morning Again in America." 1040 00:49:20,374 --> 00:49:21,917 [engine revving, birds chirping] 1041 00:49:21,959 --> 00:49:26,004 The idea of being the economy had come back, 1042 00:49:26,046 --> 00:49:28,507 the national defense had come back. 1043 00:49:28,548 --> 00:49:29,883 [bicycle bell rings] -[man] Good morning, Jim. 1044 00:49:29,925 --> 00:49:33,762 [Khachigian] And the spirit of America had returned. 1045 00:49:33,804 --> 00:49:35,263 [man] Under the leadership of President Reagan, 1046 00:49:35,305 --> 00:49:39,351 our country is prouder and stronger and better. 1047 00:49:41,144 --> 00:49:43,438 [Will] Ronald Reagan understood that 1048 00:49:43,480 --> 00:49:45,482 the things happen when people are confident. 1049 00:49:45,524 --> 00:49:47,901 [Baker] He was always extoling the virtues 1050 00:49:47,943 --> 00:49:51,154 of this shining city on the hill, 1051 00:49:51,196 --> 00:49:54,241 the virtues of this wonderful country we live in. 1052 00:49:54,282 --> 00:49:57,244 [Johnson] That "Morning in America" campaign 1053 00:49:57,285 --> 00:50:00,664 is a pop culture fantasy of a strong nation 1054 00:50:00,706 --> 00:50:04,793 that had recovered after years of turmoil. 1055 00:50:04,835 --> 00:50:07,004 It is a nation that got its swag back 1056 00:50:07,045 --> 00:50:11,842 led by an old-fashioned cowboy and his dutiful wife. 1057 00:50:19,057 --> 00:50:21,226 [Shearer] One of Reagan's geniuses 1058 00:50:21,268 --> 00:50:24,855 was to convince people to vote against their own self-interest, 1059 00:50:24,896 --> 00:50:28,400 the notion that if you supported Reaganomics, 1060 00:50:28,442 --> 00:50:31,319 you would have a better life when it wasn't true, 1061 00:50:31,361 --> 00:50:34,656 but he convinced people to do it. 1062 00:50:34,698 --> 00:50:37,034 [Johnson] Reagan realized something 1063 00:50:37,075 --> 00:50:40,829 a lot of politicians were always afraid to admit. 1064 00:50:40,871 --> 00:50:42,998 A lot of Americans are just selfish, 1065 00:50:43,040 --> 00:50:45,709 and the best way to destroy a program 1066 00:50:45,751 --> 00:50:48,545 is not just to tell people that it's inefficient. 1067 00:50:48,587 --> 00:50:51,048 It's to tell them that they have to share it with somebody, 1068 00:50:51,089 --> 00:50:52,841 especially if that means 1069 00:50:52,883 --> 00:50:56,053 Black and brown people in America. 1070 00:50:56,094 --> 00:50:58,722 [Wiley] Reagan knew exactly how to package 1071 00:50:58,764 --> 00:51:02,350 the myth of the American dream that was painted white 1072 00:51:02,392 --> 00:51:05,395 and where everyone could advance. 1073 00:51:05,437 --> 00:51:07,397 The wonderful part about our country 1074 00:51:07,439 --> 00:51:14,321 is that you can work hard and better yourself... 1075 00:51:14,362 --> 00:51:16,156 which is what Ronnie did. 1076 00:51:18,450 --> 00:51:19,868 [Wiley] The Reagans erased 1077 00:51:19,910 --> 00:51:22,746 their own experience of the world, 1078 00:51:22,788 --> 00:51:24,915 their own relationships, 1079 00:51:24,956 --> 00:51:27,751 the power and the privilege that they had been given. 1080 00:51:27,793 --> 00:51:31,755 Ultimately, Reagan was about serving his own ideology 1081 00:51:31,797 --> 00:51:34,758 and not about paying attention 1082 00:51:34,800 --> 00:51:37,219 to the needs of the American people. 1083 00:51:37,260 --> 00:51:38,887 [indistinct chatter] 1084 00:51:38,929 --> 00:51:41,306 [Ronald] The best view of big government 1085 00:51:41,348 --> 00:51:43,725 is in a rearview mirror as we leave it behind. 1086 00:51:45,477 --> 00:51:48,105 [Lopez] Today, there is this belief 1087 00:51:48,146 --> 00:51:49,773 that, of course, the United States 1088 00:51:49,815 --> 00:51:51,775 is committed to a vision 1089 00:51:51,817 --> 00:51:54,611 in which government does as little as possible. 1090 00:51:54,653 --> 00:51:56,613 It's all part of the mythology of Reagan. 1091 00:51:56,655 --> 00:51:58,448 [crowd] Four more years! 1092 00:51:58,490 --> 00:52:00,784 [Shearer] I think that's one of the worst things, 1093 00:52:00,826 --> 00:52:03,745 was this cynicism about government, 1094 00:52:03,787 --> 00:52:06,248 because America was supposed to be found 1095 00:52:06,289 --> 00:52:08,750 on the idea of a democratic government. 1096 00:52:08,792 --> 00:52:11,419 And if you get cynical about government, 1097 00:52:11,461 --> 00:52:14,131 then you're gonna get cynical about democracy. 1098 00:52:14,172 --> 00:52:18,093 [crowd chanting] USA! USA! USA! USA! 1099 00:52:18,135 --> 00:52:21,138 [Lear] Everything Reagan was, 1100 00:52:21,179 --> 00:52:26,143 so affable, so likeable, so neighborly, 1101 00:52:26,184 --> 00:52:29,229 was antithetical to the polarity 1102 00:52:29,271 --> 00:52:30,897 he'd pushed through, which amounted 1103 00:52:30,939 --> 00:52:33,316 to greed is good... 1104 00:52:33,358 --> 00:52:36,444 [ laughs ] or greed is great, 1105 00:52:36,486 --> 00:52:40,073 or screw everybody but the one percent. 1106 00:52:51,543 --> 00:52:54,337 [woman] Clad in blue jeans, tennis shoes 1107 00:52:54,379 --> 00:52:56,047 and a raid jacket with her name on it, 1108 00:52:56,089 --> 00:52:58,300 Nancy Reagan first watched undercover police 1109 00:52:58,341 --> 00:53:01,178 make street buys from inside a motor home 1110 00:53:01,219 --> 00:53:04,347 and followed as they busted 14 occupants of this home. 1111 00:53:04,389 --> 00:53:08,351 [Nancy] What a waste. What a wasted life. 1112 00:53:08,393 --> 00:53:10,187 [man] Would you describe what you saw inside? 1113 00:53:10,228 --> 00:53:15,192 [Nancy] I saw a lot of people on the floor, 1114 00:53:15,233 --> 00:53:18,028 and, uh, floors that were unfurnished, 1115 00:53:18,069 --> 00:53:19,821 small little house. 1116 00:53:19,863 --> 00:53:21,656 You wish that-- 1117 00:53:21,698 --> 00:53:23,200 you wish that somehow you could have-- 1118 00:53:23,241 --> 00:53:25,202 somebody could have gotten a hold of them sooner.