This speech refers to a televised address given by President Reagan in 1981, where he outlined his plan for reducing federal taxes. The speech aimed to rally public support for his proposed tax cuts.
Imagine you have a big group project and your team is trying to convince the teacher to give everyone an extra day to work on it. In order to get everyone on board with the plan, one of your teammates gives a persuasive speech during class explaining why it's important and how it will benefit everyone.
Tax cuts: A policy measure that lowers the amount of money individuals or businesses are required to pay in taxes, with the goal of stimulating economic growth.
Supply-side economics: An economic theory supported by Reagan which advocates for reducing taxes on businesses and wealthy individuals as a means of stimulating investment and economic growth.
Trickle-down economics: A term often used critically to describe supply-side economics, suggesting that benefits from tax cuts for the wealthy will eventually "trickle down" to benefit lower-income individuals.
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