3 min read•june 24, 2024
Reagan's presidency marked a shift towards conservative policies and limited government. His approach, dubbed "," focused on , , and reduced social spending to stimulate economic growth and reduce government influence.
The Reagan era had far-reaching effects on American society. While the wealthy benefited from tax cuts and deregulation, the middle class saw stagnant wages and reduced social programs. This period also saw increased and a growing national debt.
Reagan's approach to governance was based on principles of limited government and free-market economics believed in reducing size and scope of federal government advocated for deregulation of industries and reducing government intervention in economy supported states' rights and transfer of power from federal government to state and local governments
Impact on federal policies reduced government spending on social programs cut funding for welfare, food stamps, and Medicaid (AFDC, WIC) eliminated Comprehensive Employment and Training Act (CETA) and reduced job training programs implemented , known as "Reaganomics" lowered individual income tax rates and reduced top marginal tax rate from 70% to 28% () decreased corporate tax rates to stimulate business investment and economic growth reduced government regulations on businesses to encourage entrepreneurship and competition () increased defense spending and military buildup initiated (SDI), also known as "" expanded funding for development of new weapons systems and military technology (, )
Effects on wealthy and businesses benefited from lower individual and corporate tax rates experienced increased income and wealth accumulation enjoyed more favorable business environment due to deregulation and reduced government intervention (savings and loan industry)
Effects on middle class experienced modest tax cuts, but benefits offset by other factors elimination of certain tax deductions and exemptions increase in payroll taxes for Social Security and Medicare faced stagnant wage growth and rising income inequality
Effects on poor and working class negatively impacted by cuts to social programs and job training experienced reduced access to welfare, food stamps, and Medicaid (AFDC, WIC) faced higher unemployment rates and limited economic opportunities
Effects on economy as a whole increased budget deficits and national debt due to tax cuts and increased defense spending (5.8 trillion) experienced period of economic growth and job creation in mid-1980s (7.2% GDP growth in 1984) witnessed widening income gap and increased economic inequality ( increased from 0.403 in 1980 to 0.436 in 1989)
emerged as conservative political movement in 1960s and 1970s opposed social and cultural changes of 1960s, such as civil rights movement, feminism, and counterculture () advocated for traditional values, limited government, and strong national defense included religious conservatives, economic libertarians, and neoconservatives
Key organizations and figures in New Right movement:
Influence on Reagan's political success New Right provided grassroots base of support for Reagan's presidential campaigns in 1980 and 1984 Reagan embraced New Right's conservative agenda and incorporated their ideas into policy proposals () New Right's emphasis on social and traditional values helped Reagan win support of religious conservatives and blue-collar Democrats () movement's anti-communist stance aligned with Reagan's foreign policy views and contributed to his popularity during era ()