![dek](https://content.time.com/time/time75/covers/weekly_pix/images2/810216_week1.jpg)
Week of Feb. 16, 1981
President Reagan notes the purchasing power of a dollar earned in 1960 is now just 36 cents. Facing a huge deficit, his message is clear: get ready for big cuts in Social Security, welfare, and unemployment compensation. Off the list: military spending.