tributed to Ronald Reagan’s victory over Carter in
the 1980 presidential election. By contrast, when
President Reagan ran for reelection against Walter
Mondale in 1984, the economy was expanding vigor-
ously and the 1981-1982 recession was a fading mem-
ory. This contributed to Reagan’s reelection.
The major economic impact of the 1980 and
1981-1982 recessions was the rise in unemployment,
particularly in the manufacturing and construction
industries. Manufacturing unemployment was 5.6
percent in 1979 and 12.3 percent in 1982, an in-
crease of 6.7 points. In construction, unemployment
rose from 10.3 percent in 1979 to 20.0 percent in
- Because most of the workers in these highly
impacted industries were men, the female unem-
ployment rate rose more slowly than the male rate
from 1979 to 1982. Thus, for women the rate rose
from 6.8 percent in 1979 to 9.4 in 1982. Among men,
the rate rose from 5.1 percent in 1979 to 9.9 percent
in 1982. Among all workers, African Americans suf-
fered the greatest increase in unemployment. In
1979, the unemployment rate for African Americans
was 12.3 percent; it rose to 18.9 percent in 1982 and
19.5 percent in 1983. For white workers, the
unemployment rate was 5.1 percent in 1979,
8.6 percent in 1982, and 8.4 percent in 1983.
Further Reading
Glasner, David, ed.Business Cycles and Depres-
sions: An Encyclopedia. New York: Garland,
- An exhaustive study of the history
of business cycles and the economists who
wrote about them.
Kurian, George, ed.Datapedia of the United
States, 1790-2005. 2d ed. Lanham, Md.:
Bernan Press, 2005. Extensive statistical
information on the impact of business cy-
cles. Contains important data not readily
available elsewhere.
Samuelson, Paul, and William Nordhaus.Eco-
nomics. 17th ed. New York: McGraw-Hill, - Excellent discussion of the causes of
business cycles. Written at a basic level.
Alan L. Sorkin
See also Business and the economy in the
United States; Economic Recovery Tax Act
of 1981; Inflation in the United States; Rea-
ganomics; Unemployment in the United
States; Unions.
Regan, Donald
Identification Secretary of the Treasury, 1981-
1985, and White House chief of staff, 1985-1987
Born December 21, 1918; Cambridge,
Massachusetts
Died June 10, 2003; Williamsburg, Virginia
As President Ronald Reagan’s first secretar y of the Trea-
sur y, Regan was a major architect of the supply-side eco-
nomic policies that became known as Reaganomics.
Donald Regan graduated from Harvard University
in 1940. He served in the U.S. Marine Corps in
World War II, attaining the rank of lieutenant colo-
nel. After the war, he joined the Merrill Lynch invest-
ment firm, where he rose eventually to become pres-
ident of the firm in 1968 and chairman and chief
executive officer of Merrill Lynch, Pierce, Fenner
and Smith in 1971. From 1973 to 1975, he also
served as vice chair of the New York Stock Exchange.
At the Department of the Treasury, Regan helped
to craft the Economic Recovery Tax Act of 1981 and
what became the Tax Reform Act of 1986. These bills816 Regan, Donald The Eighties in America
Secretary of the Treasury Donald Regan listens as President Ronald Reagan
whispers in his ear in the White House Rose Garden in June, 1981.(AP/
Wide World Photos)