Document Based Question- Ronald Reagan Administration: Is National Debt a Problem?
During the 1980s, the Reagan administration lowered tax rates, hoping to pull the economy out of a recession. At the same time, defense spending increased. These factors, in part, led to annual budget deficits that added substantially to the national debt. There remains substantial debate about the cost and benefits of national debt.
Use your knowledge of Ronald Reagan’s economic policies and the documents to answer the questions and then the essential question below.