>> in this present crisis, government is not the solution to our problem. government is the problem. >> if ever a policy reflected the president's own character, it is reaganomics. >> we had faith and we are staying with the paid political complainer, put up or shut up. >> the president was. >> a story from sources hinged that iran has helped the united states free a hostage from lebanon. >> they called at this time reagan revolution. for me it seemed like the rediscovery. once you begin a great movement,

no telling where it will end. >> thank you. we are faced with an

unprecedented situation in this country. jimmy carter's demonstrated inability to govern our nation. i have faith in the greatness of the people of this country. this country has everything it always had before except the leadership in washington this country requires. >> reagan put a lot of energy and effort into 1980. the economy had been through a recession and in addition that, the united states had been embarrassed by the iran hostage crisis. the country wanted to turn the corner and ronald reagan held the promise of all of that. >> america is turning to a new political direction for at least the next four years. to the right. republican. ronald reagan rode the land slide to the white house and republicans swept control of the senate for the first time in a quarter century.

>> reagan conveyed a sense of optimism and hope. the secret to his success was that he made people feel good. >> even though reagan had been a fairly successful governor of the largest state of the union, he was still doubted for his odd background for a politician as having been an actor and he was controversial. he took outrageous positions. >> in this present crisis, government is not the solution to our problem. government is the problem. >> for 50 years, americans had been looking to government to solve their problems. when reagan gave his speech, that marked a 180 degree turn around in the american political conversation in the trend of american politics. >> can we solve the problems confronting us? the answer is an unequivocal and emphatic yes. after all, why shouldn't we

believe that? we are americans. god bless you and thank you. >> we have a report just told that the associated press reports that the hostages are leaving tehran. they say that the hostages are leaving the airport. >> for 44 days, they were sign as a sign of carter's weakness and reagan comes in and they are released. >> they are free, mr. president. they are free, mr. president. we had press reports that they are free. what do you have to say about it? >> thank god. >> the whole last year was defined by the hostages and the hour of reagan's administration. they are free. that's the case where the image

defines the reality. >> inflation and unemployment are threatening the way of and these intolerable conditions will get worse. >> inflation flaired again last month almost doubling the rate of the month before. >> in 1987, inflation was 2.9% and last year 12.4%. >> people were afraid and begun to think that america was in a kind of relative decline. >> we had high unemployment and high inflation that at the time was thought to be impossible. it required something new to

change that problem. >> if we can lower the rate of increase in government spending, up there is daylight. >> today we found 72% of the savings that we have to achieve in order to meet that $53 billion reduction target. >> reaganomics was basically if you give the investing class the money, then it would trickle down to the bottom of the pile. cutting taxes would increase revenu revenues. >> the president spent the day dealing with fires on the right and the left of his new plan. the cuts he wants to make in the budget and income taxes brought out disagreements among supporters as well as opponents. >> cut back! >> reagan said cut back. >> we say fight back. >> they gambled the future on a plan that doesn't deal relentlessly with prizing prices

and interest rates. >> they try to change things in a radical way and did come up with a culture and a democratic establishment that was not just going roll over and let him get his way. >> for we do nothing else, we will convince this city that the power, the money, and the responsibility in this country begins and ends with the people and not with some cinder block building in washington, d.c. thank you very much.

>> we interrupt the late development and shots fired outside the hotel where president reagan spoke. here is bernard shaw. >> details are sketchy and we don't know what happened and we don't know the sequence. the president is safe. >> he was wounded! the president was. he is in stable condition. all this information. we have one more bit of information. the president has not yet been removed and he is not undergoing

surgery at the time. he was struck in the left chest. the last word we had is that he was conscious. his condition was described as stable. oh, my god. using smart traps to capture mosquitoes and sequence their dna to fight disease. there are over 100 million pieces of dna in every sample. with the microsoft cloud, we can analyze the data faster than ever before. if we can detect new viruses before they spread, we may someday prevent outbreaks before they begin.

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he may die on the surgeon's table. >> the president's condition is stable. and that we were informed by jim baker that he did walk into the hospital. >> i was at the white house and the information coming in was incomplete. they were not fully up to date on what was happening with the president's condition and when they found out how serious it was, they wanted to reassure. >> coming in is that the bullet as we have reported once before did miss the president's heart, missed by an inch. >> they told mrs. reagan, honey, i forgot to duck. >> what are? >> i forgot to duck. then when he got into the operating room, he looked at the doctors and said please me you are republicans. >> reagan relied on these advisers. jim baker as chief of staff and a really skilled, screwed political insider.

ed mees who was a counsellor to the president and michael dever is in charge of the mia operations. he ranhe white house. >> the assassination attempt and aftermath elevated ronal reagan's popularity to a new high. his job rating jumped 10 points. >> here understood he was getting a sympathy reaction. everybody was rooting for him and they didn't want to lose a president. without missing a step, he goes into what the message is. we have to get the tax and spending bill passed and do it now. >> mr. speaker, the president of the united states. >> an was a true american hero. >> the president looking very jovial and healthy.

>> it was grateful stirring moment. >> they are not going to stop for a while. they handed president reagan and the republicans a major victory. in the attempt to cut the budget, he got what he wanted by a house controlled by the opposition party. >> reagan comes off of a victory and the recovery of the assassination looking bold like a determined leader. >> good evening. the strike began ascheduled as 7:00 local time this morning. the impact was immediate. most flights delayed and many more canceled. >> for should work terrible hours. they were under paid and they didn't get what they wanted. they went out on strike. >> they were the only union in the country. by law, they were forbidden to strike. >> they are in violation of the

law and if they do not report for work within 48 hours, they forfeited their jobless and be terminated. end of statement. >> what? he actually did that? it's kind of like hitting the mule on the head with a two by four. that got people's attention. >> president reagan started firing and the government claimed it was ready to rebuild. >> this sent a powerful message to different parts of the electorate. many were terrified. >> if ever a policy reflected a president's own character, it is reaganomics. it is so personal it barely qualifies as a theory. the trouble is reaganomics is not working. >> for has been the single overwhelming failure of the reagan administration. 12 million americans out of work

the the highest rate since the the tax cut did not give the economy the kick that had been promised. business got worse. factories closed. layoffs, bankruptcies, the federal deficit. inflation was brought under control and a remarkable accomplishment at a terrible cost. >> reagan was trying hard to kill inflation and that was working, but the problem was interest rates were going up to 18%. it's like chemotherapy for the economy. it kills things along the way. >> the government can live with high unemployment to curb inflation. it seems to be a high price for us. >> it's not anymore. it's for the rich. and the poor can go to hell. >> we are going to have hard times for the next few months while we had predicted as you well know a stagnant economy

none of us predicted the stepping over into recession. >> when david came in and said the deficit is not going down. it is getting larger. reagan apparently was shocked. perhaps he had been too be giled. >> reaganomics as it's called was not generating revenue. the theory if you detax the rich, everybody will be better off because they will invest that money turned out not to be true. >> these are not happy days for a budget director. the december issue of the atlantic monthly has a long article in which he was quoted in saying things he did not say. >> i got the magazine and it was an early copy. the president gave a news conference that day. i kept waving my hand and he didn't call on me. i chased him out.

>> he had no idea what i was talking about clearly. the budget director blew the whistle on this plan. the supply side economic theory. they refer to the supply siders. they are promised on faith said stockman. none of us knows what's going on. >> a lot of people wanted him fired and i thought i had to keep him because he knew more about the budget than anyone. i prevailed upon him to not fire him. >> we are sticking with the paid political complainers. let me say as politely as i can, put up or shut up. >> standing in the ap poll has gone from a high of 65% approval after he was shot to a low of 43% last fall, a bit lower than

any previous president during his stay in the white house. >> we're lost big in the 1982 mid-terms, but everybody was blaming the bad economy on the tax cuts and spending reduction. >> i remember thinking okay, the bubble burst. when a president sinks like that and i had seen it with jimmy carter, you don't come back. i did believe that. he is not going to come back. per roll bounty is more absorbent, so the roll can last 50% longer than the leading ordinary brand. so you get more "life" per roll. bounty, the quicker picker upper "how to win at business." step one:

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at least 76 united states marines were killed in lebanon and 115 were wounded. they may rise higher. >> i was sound asleep and this bomb went off. you could feel it shake across beirut. it was massive. it was devastating. >> a truck was driven into a compound, the midst of a headquarters and the explosives were detonated. the building collapsed on 150 or 200 sleeping marines. you said he always remained.

>> israel had gone into lebanon to create a buffer zone against the palestinians. >> a battalion came out to oversee the withdrawal from lebanon. it got sucked in to the lebanese civil war. >> the civil war is between christians and muslims and the muslims looked like they were supporting christians. >> a big debate broke out afterwards. should we ever put the marines in that vulnerable position when they didn't have a clear mission. they were sitting there. >> the united states and the mideast was faced with an array of small forces and not uponing who or where they were or what they wanted. >> there no words to properly express our outrage. i think the outrage of all americans. >> do you have any idea who did

it? >> the saddest day of my presidency, the saddest day of my life. it was the low point of the reagan presidency. >> a question that must be asked is why 241 men were killed boy a terrorist yet this country was not outraged. there were no demonstrations and no marchers and little outcry. the reason? within 48 hours of the bombing. the united states innovated grenada. >> about 1,900 rangers and marines this morning soughted the small island that is only 12 miles by 21 miles. the population is 110,000, roughly the size of cedar rapids, iowa. >> there is a communist coop and reagan seizes on this to stage an invasion. >> the united states received an urgent formal request to assist in a joint effort to restore order and democracy on the

island of grenada. >> a troop carrier was passing by and all they did was turn that combat ready ship into grenada. >> they broadcast a soothing message. >> your cooperation will ensure that peace and democracy are restored in the near future. >> at least at a psychological or moral level, he was doing something that he wanted to do in lebanon, but couldn't. he could do it in grenada and could show the world that they would take action. reagan was lucky and had the good fortune to have an easy military victory just eliminating the memory of what happened in beirut and replacing it with the scene of the military in the caribbean. >> the world changed. our national security has been threatened in other places. to be aware of the experience of such places and to be able to

identify. the events are oceans apart and closely related. not only is moscow assisted and encouraged the violence in both countries, but provides direct support through a network of terrorists. >> what are he really cared about was this cancer on the world. there was a marxist regime anywhere and somebody was trying to take it down, he would be for them. >> perhaps by coincidence, the u.s. greatly expanded the military presence in central america. a big battle ship joined to aircraft carriers in the waters off nicaragua. >> in nicaragua where there was a leftist regime in place, the united states was supporting the contras in their effort to overturn the government. >> that was an evil bunch. he was going to overthrow them. the heroes were the contras who would do the job like our

founding fathers did it in lexington. >> we are complying with the law. we are complying with that fully. >> the amendment passed in the house last december and said specifically the united states cannot funds for the purpose of overthrowing the government of nicaragua. >> when congress tried to cut funding, reagan believed that it was his obligation, a moral obligation as well as to american security to make sure they continued to get funding. >> for the relative safety of the warships ending a 17-month peace keeping mission bringing them no closer to resolving internal strive. >> lebanese factions realized the impact was short lived.

the groups nabbed americans. >> the united states was again the target of the shadowy men with guns. they kidnapped william buckley who is the embassy's contac man. he is the 30 american to be kidnapped in beirut in six weeks. >> it kept happening. it was not all at one go. it kept adding up and adding up. it consumed the reagan presidency. >> every day, almost every day he asked the security teams and intelligence briefers, is there something we can do about the hostages? >> there was a chink in reagan's armor. he was soft heart and felt a sense of obligation to do something to get them out.

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government economists have taken a look at how fast the economy grew in the first quarter of this year and it was surming ahead faster than they first thought. the jobless rate was down to 7.8%. 700,000 people found jobs during the month. >> when we took office, the e n economy was in the tank. did it take a while to get out? you bet it did. we were correcting what had gone

wrong before. >> they're bounced back and gas prices are falling and the stock market is rising. >> inflation was going down and they have an economic revival. >> it's morning again in america and under the leadership of president reagan, our country is prouder and stronger and better. >> it was a britiant ad and it worked. there was no chance a democrat was going to beat that. >> a u.s. political summit meeting takes place not to resolve, but to exploit. ronald reagan meets walter mondale. they call it a major opportunity for mondale. >> he doesn't need to win by a nose. he needs to stay by five or six or seven lengths. he needs to do well because he starts from so far back. >> the question of ronald

reagan's age had been in the back of minds of a lot of people. he was the oldest american president and he was well into his 70s. >> um, i -- as i say, i feel that we have a problem here to resolve. >> when reagan in the first debate looks confused. he speaks too long. gets lost. it's not just that walter mondale won thedebate, people fear is ronald reagan lost and they start talking about the age issue. >> it showed without queue cards and they great communicator doesn't communicate that well. >> we had six dress rehearsals last time plus computer statistics and the man was smothered by the extraneous material. this time we will let ronald reagan be ronald reagan. >> let's take advantage of what we have got.

our best political asset is him being himself and communicating with the american people. when he was showing his personality and his rhetoric, he succeeded. >> going into the debate. >> the audience will be looking at ronald reagan in a new way. the myth or the mystique of the great communicator was dented. >> president kennedy had to go for days on end. >> any doubt in your mind they will be able to function under your circumstances? >> also i will not make age an issue of this campaign. i am not going to exploit for political purposes my opponent's youth and inexperience. >> it brought down the house and

it was his house by then. >> there were several times in his first term when i thought this man is not going to be reelected president. what i under estimated is how much the public really loved and liked this man. >> it now appears president reagan has won and won big. they are seeing a victory of historic proportions. there is the total. >> so many people act as if this election means the end of something. to each one of you i say tonight is the end of nothing. it's the beginning of everything. >> it came as a surprise this morning when president reagan announced that two of the leading figures of his administration will change jobs. >> by the time it was over i was worn out. reagan said why don't we change jobs. >> he thought it was a great idea and we switched jobs. >> it kept the president on an even keel.

folded into one man. >> it was an unsuccessful experiment. >> he was not cut out for the job. he took a snap at it. >> reagan needed good advisers and doesn't have the same quality of people. jacobs en was freed after 17 months of captivity. >> because we are still negotiating for the other hostages, we are not going to say anything more. >> we don't negotiate with hostage takers and don't make deals and don't pay ransom. reagan hammered on the staff to

find a way to get the hostages out. >> today the story from mideast sources is iran helped the united states free a hostage from lebanon. >> in a bizarre tale, the news agency reports that president reagan's former security adviser recently made a secret visit to tehran. iran said mcfarland came seeking help in frees hostages by pro iranian groups. >> i can't believe it could be that clumsy. it seems so unliked. >> why not dispel the speculation by telling us what happened, sir? >> in the name of god, will you please just be responsible. their network reliability is now within 1% of verizon. and, with sprint's new unlimited plan, you have the freedom to do virtually whatever you want.

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show that every time an american hostage was released, there had been a major shipment of arms before that. are we all to believe that was just a coincidence? >> chris, the only thing i know about major shipments of arms is everything that we sold them could be put in one cargo plane and there would be plenty of room left over. there was no deception intended by us. >> for the first time, reagan seemed to be at sea not knowing how to deal with this particular problem. it was a debilitating experience and the president showed it. >> it became clear that things were going on that not everybody knew about. the president asked his attorney general to investigate. >> and now i'm going to ask the attorney general to brief you. . >> did you make a mistake of

sending arms to tehran? >> no and i'm not take anything more questions. >> in the course of the arms transfers that involved the united states providing the arms to israel and israel selling the arms to representatives of iran. certain monies which were received in the transaction between representatives of israel and representatives of iran were taken and made available to the forces in central america which are opposing the government there. >> there was an audible gasp in the room. cynical jaded reporters who had seen and heard of everything gasped out loud. >> there it was, smoking gun proof of the connectionetween the two programs and the fact that part of this administration was using the money from the sales of arms to iran to fund the contras. >> the shadowy figure we have been hearing about at the center

of the revelations is oliver north. his facts and public testimony is what the country is waiting for. >> oliver north. he worked in the west wing had this idea. since we are selling weapons to iran and there are certain profits coming from the weapons and since we are not supposed to be selling the weapons, these are basically on the books. let's take the profits and let's use them to support the contras. we can kill two birds with one stone. >> the problem was both of those schemes violated american policy and violated the law. when they were exposed, it all came crashing down and ronald reagan was left trying to explain why his administration had violated his own policies. >> john poindexter has asked to be relieved of his assignment. oliver north has been relieved

of his duties on the counsel staff. >> i thought this was another watergate. i felt that way. >> when the iran contra story broke, it played into various strains about reagan. here's this actor who doesn't know what's being done or he was clearly lying to the american people about this. >> the president's letter said i have no personal notes or records to help my recollection on this matter. >> try as imight, i cannot recall anything whatsoever about whether i approved and the simple truth is i don't remember. period. >> early in the iran contra story, a riff showed up and i don't know what the president knew and when he forgot it. >> it was very serious. his political opponents and the american people saw something that they didn't approve of. we can see his numbers were dropping and the whole

presidency was at risk. >> tomorrow morning the iran contra hearings move into the most dramatic stage. oliver north will testify in public for the first time. >> colonel north, please rise. >> oliver north's appearance before that joint committee is one of the historic moments in 80s television. there was a guy almost more than reagan who understood what the images were. >> one question the american people would like to know the answer to is what did the president know? >> throughout the conduct of my entire tenure, i assumed that the president was aware of what i was doing and had through my superiors proved it. >> ollie north said everything he did was in the service of what he understood ronald reagan want and everything he did was really just done out of love of country. it was very tough for those politicians in suits to knock that testimony down.

>> i did do it. i was given a mission. i tried to carry it out. >> but part of that mission was to shelled others. >> that is the part of any subordinate. >> president reagan still wasn't talking about lieutenant colonel oliver north's testimony. >> i'm not going to comment until the hearings are over. >> the white house states flatly the president did not know about the diversion. officials here are still bracing for the testimony next week of john poindexter. a man who unlike north met with the president every day. sometimes with no one else in the room. >> did you at any time tell the presidt that proceeds from the iranian arms sale were being used to support the contras? >> i don't -- i did not. an important point here is

that -- on this whole issue, you know, the buck stops here with me. >> if there had been evidence that reagan knew about the diversion of money from iran to the contras in nicaragua, there would have been serious calls for his resignation. but ronald reagan managed to walk away, not quite unscathed, because his reputation took a hit, but he did get another chance to rescue his presidency from that low point. and here... and here. the answer is 8. bottom line, life is hard. that's why godaddy created website builder... it makes creating a website...easy. build an awesome mobile-friendly, website... and it's free to get started. plus with the money you save, you can hire a math tutor.

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it's absolutely what you need right now. absolutely scottsdale. my fellow americans, tonight i want to talk about some of the lessons we've learned. i was stubborn in my pursuit of a policy that went astray, yet the buck does not stop with admiral poindexter. as he stated in his testimony. it stops with me. i am the one who is ultimately accountable to the american people. >> one thing that's very different, even if what reagan did was a horrible plunder, at least it wasn't for political gain. it wasn't a dirty trick against the opposition party. a lot of people didn't want to go through that, they wanted to give the president the benefit of the doubt. >> ronald reagan was thought of as the teflon president because

reporters couldn't touch him. he could make mistakes, but the voters didn't care. they cared about reagan's grand vision of a better country. >> the president appeared relaxed and happy as he visited friendly nebraska country today. his spokesman reported that right after his speech last night, the white house received 1,145 phone calls. >> it's time to get down to the real business at hand, to move forward with america. >> reagan didn't recover quickly, but he did recover so he could go on and govern. he brought in a new team, howard baker as his chief of staff and colin powell and that third team was the third apter. >> ladies and gentlemen, the president of the united states. [ cheers and applause ] >> george bush played a major role in everything that we have accomplished in these eight years.

america needs george bush and barbara bush as first lady. >> george bush will be the 41st president of the united states. >> the election of bush with the american people was we want more reagan, we want more of what we had. bush was the closest thing to a third term for ronald reagan. >> ronald wilson reagan, the 40th president of the united states, in two days he leaves office as our oldest president and as one of the most popular ever. >> ronald reagan was the chief architect of the 1980s. you don't always identify a president with years, but reagan -- but in this case, the '80s should be identified as the reagan years. >> for me it always seemed like the great rediscovery of our values and common sense.

as long as we remember our first principles and believe in ourselves, the future should always be ours. once you begin a great movement, there's no telling where it will end. >> the very firmness of his rhetoric enabled him to be a pragmatist. he's our conservative warrior. the fact at that he raised taxes and appointed two pro-choice supreme court justices, that he signed and abdicated a bill for amnesty for three million illegal immigrants, they forgave all that, because ronald reagan had been, for so long, their champion. >> president reagan stood that -- understood that we judge our presidents on the basis of what they get accomplished. and he understood politics. and that together with the fact that he was a beautiful human being, those were the secrets to

his success. >> the last days, he just sort of lingered. finally they said, "mr. president, it's time." and the photographer came in, stage was set. he turned away from the desk, went to the door and through. the actor leaving stage. it's that reagan magic that he had. and it was real. it was magic but it was real. >> on the big issues, the revival of the american spirit, the re-ignition of the american economy, ronald reagan exceeded beyond anyone's expectations. as for his critics, many still frustrated, even angry but they do concede that ronald reagan leaves washington an enormously popular figure and in this day

and age, that alone is an historic achievement. in money matters this morning, wall street, where leaping stocks have investors jumping. >> we're going to turn the bull loose. >> one of the great things about this nation is, we can seek profit. >> is money the number one goal? >> yes. >> we've had 29-year-olds making a million dollars a year. expecting to make $2 million the year after that. >> but if you've got plastic money, there's nothing holding you back. >> history will prove the bankers were honest people. >> insider trading could become wall street's watergate. >> what do we call greed the day