Ronald Reagan's tenure as the
40th president of the United States
The president of the United States (POTUS) is the head of state and head of government of the United States of America. The president directs the Federal government of the United States#Executive branch, executive branch of the Federal gove ...
began with
his first inauguration on January 20, 1981, and ended on January 20, 1989. Reagan, a
Republican from California, took office following a landslide victory over
Democratic
Democrat, Democrats, or Democratic may refer to:
Politics
*A proponent of democracy, or democratic government; a form of government involving rule by the people.
*A member of a Democratic Party:
**Democratic Party (United States) (D)
**Democratic ...
incumbent President
Jimmy Carter
James Earl Carter Jr. (born October 1, 1924) is an American politician who served as the 39th president of the United States from 1977 to 1981. A member of the Democratic Party, he previously served as the 76th governor of Georgia from 19 ...
in the
1980 presidential election. Four years later, in the
1984 election, he defeated Democrat former vice president
Walter Mondale
Walter Frederick "Fritz" Mondale (January 5, 1928 – April 19, 2021) was an American lawyer and politician who served as the 42nd vice president of the United States from 1977 to 1981 under President Jimmy Carter. A U.S. senator from Minnesot ...
to win re-election in a larger landslide. Reagan was succeeded by his vice president,
George H. W. Bush. Reagan's 1980 election resulted from a dramatic
conservative shift to the right in American politics, including a loss of confidence in
liberal,
New Deal
The New Deal was a series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States between 1933 and 1939. Major federal programs agencies included the Civilian Con ...
, and
Great Society programs and priorities that had dominated the national agenda since the 1930s.
Domestically, the Reagan administration enacted a
major tax cut, sought to cut non-military spending, and eliminated federal regulations. The administration's economic policies, known as "
Reaganomics", were inspired by
supply-side economics. The combination of tax cuts and an increase in defense spending led to budget deficits, and the
federal debt increased significantly during Reagan's tenure. Reagan signed the
Tax Reform Act of 1986 (which simplified the tax code by reducing rates and removing several tax breaks) and the
Immigration Reform and Control Act of 1986
The Immigration Reform and Control Act (IRCA or the Simpson–Mazzoli Act) was passed by the 99th United States Congress and signed into law by U.S. President Ronald Reagan on November 6, 1986.
The Immigration Reform and Control Act altered U.S ...
(which enacted sweeping changes to U.S. immigration law and granted amnesty to three million
illegal immigrants). Reagan also appointed more
federal judges than any other president, including four
Supreme Court
A supreme court is the highest court within the hierarchy of courts in most legal jurisdictions. Other descriptions for such courts include court of last resort, apex court, and high (or final) court of appeal. Broadly speaking, the decisions of ...
Justices.
Reagan's
foreign policy
A state's foreign policy or external policy (as opposed to internal or domestic policy) is its objectives and activities in relation to its interactions with other states, unions, and other political entities, whether bilaterally or through ...
stance was resolutely
anti-communist
Anti-communism is political and ideological opposition to communism. Organized anti-communism developed after the 1917 October Revolution in the Russian Empire, and it reached global dimensions during the Cold War, when the United States and th ...
; its plan of action, known as the
Reagan Doctrine, sought to
roll back
''Roll Back'' is an album by Irish rock band Horslips, their first since ''Short Stories/Tall Tales'' 25 years earlier. It is a collection of acoustic re-workings of various songs from the band's catalogue.
Background
In March 2004, three Ho ...
the global influence of the
Soviet Union
The Soviet Union,. officially the Union of Soviet Socialist Republics. (USSR),. was a List of former transcontinental countries#Since 1700, transcontinental country that spanned much of Eurasia from 1922 to 1991. A flagship communist state, ...
in an attempt to end the Cold War. Under this doctrine, the Reagan administration initiated a massive buildup of the United States military; promoted new technologies such as missile defense systems; and, in 1983, undertook an
invasion of Grenada
The United States invasion of Grenada began at dawn on 25 October 1983. The United States and a coalition of six Caribbean nations invaded the island nation of Grenada, north of Venezuela. Codenamed Operation Urgent Fury by the U.S. militar ...
, the first major overseas action by U.S. troops since the end of the
Vietnam War
The Vietnam War (also known by #Names, other names) was a conflict in Vietnam, Laos, and Cambodia from 1 November 1955 to the fall of Saigon on 30 April 1975. It was the second of the Indochina Wars and was officially fought between North Vie ...
. The administration also created controversy by granting
aid to paramilitary forces seeking to overthrow leftist governments, particularly in war-torn Central America and
Afghanistan
Afghanistan, officially the Islamic Emirate of Afghanistan,; prs, امارت اسلامی افغانستان is a landlocked country located at the crossroads of Central Asia and South Asia. Referred to as the Heart of Asia, it is bord ...
. Specifically, the Reagan administration engaged in covert arms sales to
Iran
Iran, officially the Islamic Republic of Iran, and also called Persia, is a country located in Western Asia. It is bordered by Iraq and Turkey to the west, by Azerbaijan and Armenia to the northwest, by the Caspian Sea and Turkm ...
to fund
Contra rebels in Nicaragua that were fighting to overthrow their nation's socialist government; the resulting
scandal led to the conviction or resignation of several administration officials. During Reagan's second term, he sought closer relations with Soviet leader
Mikhail Gorbachev, and the two leaders signed a major
arms control
Arms control is a term for international restrictions upon the development, production, stockpiling, proliferation and usage of small arms, conventional weapons, and weapons of mass destruction. Arms control is typically exercised through th ...
agreement known as the
INF Treaty.
Leaving office in 1989, Reagan held an approval rating of 68%. This rating matches the approval ratings of
Franklin D. Roosevelt and later
Bill Clinton
William Jefferson Clinton (Birth name, né Blythe III; born August 19, 1946) is an American politician who served as the 42nd president of the United States from 1993 to 2001. He previously served as governor of Arkansas from 1979 to 1981 ...
as the highest rating for a departing president in the modern era. Historians and political scientists generally
rank Reagan as an above-average president. Due to Reagan's impact on public discourse and advocacy of
American conservatism, some historians have described the period during and after his presidency as the
Reagan Era.
Conservative shift in politics

Even prior to becoming president, Reagan was the leader of a dramatic conservative shift that undercut many of the domestic and foreign policies that had dominated the national agenda for decades. A major factor in the rise of conservatism was the growing distrust of government in the aftermath of the
Watergate scandal. While distrust of high officials had been an American characteristic for two centuries, Watergate engendered heightened levels of suspicion and encouraged the media to engage in a vigorous search for scandals. An unexpected new factor was the emergence of the
religious right as a cohesive political force that gave strong support to conservatism.
Other factors in the rise of the conservative movement were the emergence of a "
culture war" as a triangular battle among conservatives, traditional liberals, and the
New Left
The New Left was a broad political movement mainly in the 1960s and 1970s consisting of activists in the Western world who campaigned for a broad range of social issues such as civil and political rights, environmentalism, feminism, gay rights, ...
, involving such issues as individual freedom, divorce, sexual freedom, abortion, and homosexuality. A mass movement of population from the cities to the suburbs led to the creation of a new group of voters less attached to
New Deal
The New Deal was a series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States between 1933 and 1939. Major federal programs agencies included the Civilian Con ...
economic policies and
machine politics. Meanwhile, it became socially acceptable for conservative Southern whites, especially well educated suburbanites, to vote Republican. Though the civil rights legislation of the 1960s had been a triumphal issue for liberalism and had created a new, pro-Democratic black electorate, it had also destroyed the argument that whites had to vote Democratic to protect segregation in the South. Responding to these various trends, Reagan and other conservatives successfully presented conservative ideas as an alternative to a public that had grown disillusioned with New Deal liberalism and the Democratic Party. Reagan's charisma and speaking skills helped him frame conservatism as an optimistic, forward-looking vision for the country.
1980 election

Reagan, who had served as
Governor of California
The governor of California is the head of government of the U.S. state of California. The governor is the commander-in-chief of the California National Guard and the California State Guard.
Established in the Constitution of California, t ...
from 1967 to 1975, narrowly lost the
1976 Republican presidential primaries to incumbent President
Gerald Ford
Gerald Rudolph Ford Jr. ( ; born Leslie Lynch King Jr.; July 14, 1913December 26, 2006) was an American politician who served as the 38th president of the United States from 1974 to 1977. He was the only president never to have been elected ...
. With the defeat of Ford by Democrat
Jimmy Carter
James Earl Carter Jr. (born October 1, 1924) is an American politician who served as the 39th president of the United States from 1977 to 1981. A member of the Democratic Party, he previously served as the 76th governor of Georgia from 19 ...
in the
1976 election, Reagan immediately became the front-runner for the 1980 Republican presidential nomination. A darling of the conservative movement, Reagan faced more moderate Republicans such as
George H. W. Bush,
Howard Baker
Howard Henry Baker Jr. (November 15, 1925 June 26, 2014) was an American politician and diplomat who served as a United States Senate, United States Senator from Tennessee from 1967 to 1985. During his tenure, he rose to the rank of Senate Min ...
, and
Bob Dole in the
1980 Republican presidential primaries. After Bush won the Iowa caucuses, he became Reagan's primary challenger, but Reagan won the New Hampshire primary and most of the following primaries, gaining an insurmountable delegate lead by the end of March 1980. Ford was Reagan's first choice for his running mate, but Reagan backed away from the idea out of the fear of a "copresidency" in which Ford would exercise an unusual degree of power. Reagan instead chose Bush, and the Reagan-Bush ticket was nominated at the
1980 Republican National Convention. Meanwhile, Carter won the Democratic nomination, defeating a primary challenge by Senator
Ted Kennedy
Edward Moore Kennedy (February 22, 1932 – August 25, 2009) was an American lawyer and politician who served as a United States senator from Massachusetts for almost 47 years, from 1962 until his death in 2009. A member of the Democratic ...
. Polls taken after the party conventions showed a tied race between Reagan and Carter, while independent candidate
John B. Anderson
John Bayard Anderson (February 15, 1922 – December 3, 2017) was an American lawyer and politician who served in the United States House of Representatives, representing Illinois's 16th congressional district from 1961 to 1981. A member o ...
had the support of many moderates.
The 1980 general campaign between Reagan and Carter was conducted amid a multitude of domestic concerns and the ongoing
Iran hostage crisis
On November 4, 1979, 52 United States diplomats and citizens were held hostage after a group of militarized Iranian college students belonging to the Muslim Student Followers of the Imam's Line, who supported the Iranian Revolution, took ove ...
. After winning the Republican nomination, Reagan pivoted to the center. Though he continued to champion a major tax cut, Reagan backed off of his support for free trade and the privatization of
Social Security
Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specificall ...
, and promised to consider
arms control
Arms control is a term for international restrictions upon the development, production, stockpiling, proliferation and usage of small arms, conventional weapons, and weapons of mass destruction. Arms control is typically exercised through th ...
treaties with the
Soviet Union
The Soviet Union,. officially the Union of Soviet Socialist Republics. (USSR),. was a List of former transcontinental countries#Since 1700, transcontinental country that spanned much of Eurasia from 1922 to 1991. A flagship communist state, ...
. He instead sought to focus the race on Carter's handling of the economy. Mired with an approval rating in the low 30s, Carter also waged a negative campaign, focusing on the supposed risk of war if Reagan took office.
Reagan and Carter met in one presidential debate, held just one week before election day. Reagan delivered an effective performance, asking voters, "Are you better off today than you were four years ago?" In response to a characterization by Carter of his record regarding Medicare, Reagan replied with a phrase that would help define the election and endure in the American political lexicon: "
There you go again."
Though the race had been widely regarded as a close contest, Reagan won over the large majority of undecided voters. Reagan took 50.7% of the popular vote and 489 of the 538 electoral votes. Carter won 41% of the popular vote and 49 electoral votes, while Anderson won 6.6% of the popular vote. In the concurrent
congressional elections, Republicans took control of the Senate for the first time since the 1950s, while Democrats retained control of the House of Representatives.
Administration

Reagan tapped
James Baker, who had run Bush's 1980 campaign, as his first
chief of staff. Baker,
Deputy Chief of Staff Michael Deaver, and
Counselor Edwin Meese formed the "troika," the key White House staffers early in Reagan's presidency. Baker quickly established himself as the most powerful member of the troika and the overseer of day-to-day operations, while Meese had nominal leadership of policy development and Deaver orchestrated Reagan's public appearances. Aside from the troika, other important White House staffers included
Richard Darman
Richard Gordon "Dick" Darman (May 10, 1943January 25, 2008) was an American businessman and government official who served in senior positions during the presidencies of Ronald Reagan and George H. W. Bush.
Early life
Darman was born in Charlotte ...
and
David Gergen.
Reagan chose
Alexander Haig, a former general who had served as chief of staff to
Richard Nixon
Richard Milhous Nixon (January 9, 1913April 22, 1994) was the 37th president of the United States, serving from 1969 to 1974. A member of the Republican Party, he previously served as a representative and senator from California and was t ...
, as his first secretary of state. Other major Cabinet appointees included Secretary of Defense
Caspar Weinberger, a former Nixon cabinet official who would preside over an increase in defense spending, and Secretary of the Treasury
Donald Regan, a bank executive. Reagan selected
David Stockman, a young congressman from
Michigan
Michigan () is a U.S. state, state in the Great Lakes region, Great Lakes region of the Upper Midwest, upper Midwestern United States. With a population of nearly 10.12 million and an area of nearly , Michigan is the List of U.S. states and ...
, as the Director of the
Office of Management and Budget
The Office of Management and Budget (OMB) is the largest office within the Executive Office of the President of the United States (EOP). OMB's most prominent function is to produce the president's budget, but it also examines agency programs, pol ...
.
CIA director William J. Casey
William Joseph Casey (March 13, 1913 – May 6, 1987) was the Director of Central Intelligence from 1981 to 1987. In this capacity he oversaw the entire United States Intelligence Community and personally directed the Central Intelligence Agency ...
emerged as an important figure in the administration, as the CIA would figure prominently into Reagan's Cold War initiatives. Reagan downgraded the importance of the
national security advisor A national security advisor serves as the chief advisor to a national government on matters of security. The advisor is not usually a member of the government's cabinet but is usually a member of various military or security councils.
National secu ...
, and six different individuals held that position during Reagan's presidency.
Haig left the cabinet in 1982 after clashing with other members of the Reagan administration, and was replaced by another former Nixon administration official,
George P. Shultz
George Pratt Shultz (; December 13, 1920February 6, 2021) was an American economist, businessman, diplomat and statesman. He served in various positions under two different Republican presidents and is one of the only two persons to have held fou ...
. By 1982, National Security Advisor
William P. Clark Jr.,
Ambassador to the United Nations Jeane Kirkpatrick, and CIA Director Casey had established themselves as the major figures in the formulation of the administration's foreign policy. Shultz eventually emerged as the administration's most influential foreign policy figure, moving the administration towards a less confrontational policy with the Soviet Union.
Baker and Treasury Secretary Regan switched positions at the beginning of Reagan's second term. Regan centralized power within his office, and he took on the responsibilities that had been held by Baker, Deaver, and Meese, the latter of whom succeeded
William French Smith as attorney general in 1985. Regan frequently clashed with First Lady
Nancy Reagan, and he left the administration in the wake of the
Iran–Contra affair and Republican losses in the
1986 mid-term elections. Regan was replaced by former Senate Majority Leader
Howard Baker
Howard Henry Baker Jr. (November 15, 1925 June 26, 2014) was an American politician and diplomat who served as a United States Senate, United States Senator from Tennessee from 1967 to 1985. During his tenure, he rose to the rank of Senate Min ...
.
Judicial appointments
Supreme Court

Reagan made four successful appointments to the
Supreme Court
A supreme court is the highest court within the hierarchy of courts in most legal jurisdictions. Other descriptions for such courts include court of last resort, apex court, and high (or final) court of appeal. Broadly speaking, the decisions of ...
during his eight years in office. In 1981, he successfully nominated
Sandra Day O'Connor to succeed
Associate Justice
Associate justice or associate judge (or simply associate) is a judicial panel member who is not the chief justice in some jurisdictions. The title "Associate Justice" is used for members of the Supreme Court of the United States and some sta ...
Potter Stewart, fulfilling a campaign promise to name the first woman to the Supreme Court. Democrats, who had planned to vigorously oppose Reagan's nominations to the Supreme Court, approved of the nomination of O'Connor. However, the
Christian right
The Christian right, or the religious right, are Christian political factions characterized by their strong support of socially conservative and traditionalist policies. Christian conservatives seek to influence politics and public policy with ...
was astonished and dismayed with O'Connor, whom they feared would not overturn the Supreme Court's decision in ''
Roe v. Wade'', which had established the constitutional right to have an
abortion
Abortion is the termination of a pregnancy by removal or expulsion of an embryo or fetus. An abortion that occurs without intervention is known as a miscarriage or "spontaneous abortion"; these occur in approximately 30% to 40% of pregn ...
without undue government interference. O'Connor served on the Supreme Court until 2006, and was generally considered to be a centrist conservative.
In 1986, Reagan elevated Associate Justice
William Rehnquist to the position of
Chief Justice of the United States after
Warren Burger chose to retire.
Rehnquist, a member of the conservative wing of the Court,
was the third sitting associate justice to be elevated to chief justice, after
Edward Douglass White and
Harlan F. Stone. Reagan successfully nominated
Antonin Scalia
Antonin Gregory Scalia (; March 11, 1936 – February 13, 2016) was an American jurist who served as an associate justice of the Supreme Court of the United States from 1986 until his death in 2016. He was described as the intellectu ...
to fill Rehnquist's position as an associate justice of the Supreme Court.
[ Scalia became a member of the Court's conservative wing.]
Reagan faced greater difficulties in filling the final Supreme Court vacancy, which arose due to the retirement of Lewis F. Powell Jr. Reagan nominated Robert Bork in July 1987, but the nomination was rejected by the Senate in October 1987.[ Later that month, Reagan announced the nomination of ]Douglas H. Ginsburg
Douglas Howard Ginsburg (born May 25, 1946) is an American jurist and academic who serves as a senior judge on the United States Court of Appeals for the District of Columbia Circuit. He was appointed to that court in October 1986 by President Ro ...
, but Ginsburg withdrew from consideration in November 1987. Finally, Reagan nominated Anthony Kennedy
Anthony McLeod Kennedy (born July 23, 1936) is an American lawyer and jurist who served as an associate justice of the Supreme Court of the United States from 1988 until his retirement in 2018. He was nominated to the court in 1987 by Preside ...
, who won Senate confirmation in February 1988.[ Along with O'Connor, Kennedy served as the key swing vote on the Supreme Court in the decades after Reagan left office.
]
Other courts
Reagan appointed a combined total of 368 judges to the United States courts of appeals
The United States courts of appeals are the intermediate appellate courts of the United States federal judiciary. The courts of appeals are divided into 11 numbered circuits that cover geographic areas of the United States and hear appeals f ...
and the United States district court
The United States district courts are the trial courts of the U.S. federal judiciary. There is one district court for each federal judicial district, which each cover one U.S. state or, in some cases, a portion of a state. Each district c ...
s, more than any other president. The vast majority of his judicial appointees were conservative white men, and many of the appointees were affiliated with the conservative Federalist Society. Partly because Congress passed a law creating new federal judicial positions in 1984, Reagan had appointed nearly half of the federal judiciary by the time he left office in 1989.[Rossinow, p. 178]
Assassination attempt
On March 30, 1981, only 69 days into the new administration, Reagan, his press secretary James Brady, Washington police officer Thomas Delahanty, and Secret Service agent Tim McCarthy were struck by gunfire from would-be assassin John Hinckley Jr.
John Warnock Hinckley Jr. (born May 29, 1955) is an American man who attempted to assassinate U.S. President Ronald Reagan in Washington, D.C. on March 30, 1981, two months after Reagan's first inauguration. Using a .22 caliber revolver, Hinck ...
outside the Washington Hilton Hotel. Although Reagan was initially reported to be "close to death", he recovered and was released from the hospital on April 11, becoming the first serving president to survive being wounded in an assassination attempt. The failed assassination attempt had great influence on Reagan's popularity; polls indicated his approval rating to be around 73%.[Leuchtenberg, pp. 597–598] Many pundits and journalists later described the failed assassination as a critical moment in Reagan's presidency, as his newfound popularity provided critical momentum in passing his domestic agenda.
Domestic affairs
Reagan used his White House staff to shape major domestic policies. His Chief of Staff made heavy use of the Office of Policy Development in supervising cabinet action on the Reagan initiatives.
"Reaganomics" and taxation
Economic Recovery Tax Act of 1981
Reagan implemented neoliberal economic policies based on supply-side economics, advocating a ''laissez-faire
''Laissez-faire'' ( ; from french: laissez faire , ) is an economic system in which transactions between private groups of people are free from any form of economic interventionism (such as subsidies) deriving from special interest groups. ...
'' philosophy and free-market fiscal policy. Reagan's taxation policies resembled those instituted by President Calvin Coolidge
Calvin Coolidge (born John Calvin Coolidge Jr.; ; July 4, 1872January 5, 1933) was the 30th president of the United States from 1923 to 1929. Born in Vermont, Coolidge was a Republican lawyer from New England who climbed up the ladder of Ma ...
and Treasury Secretary Andrew Mellon in the 1920s. Reagan's team was also strongly influenced by contemporary economists such as Arthur Laffer, who rejected the then-dominant views of Keynesian economists. Reagan relied on Laffer and other economists to argue that tax cuts would reduce inflation, which went against the prevailing Keynesian view. Supply-side advocates also asserted that cutting taxes would ultimately lead to higher government revenue due to economic growth, a proposition that was challenged by many economists.
Republican Congressman Jack Kemp and Republican Senator William Roth had nearly won passage of a major tax cut during Carter's presidency, but Carter had prevented passage of the bill due to concerns about the deficit. Reagan made passage of the Kemp-Roth bill his top domestic priority upon taking office. As Democrats controlled the House of Representatives, passage of any bill would require the support of some House Democrats in addition to the support of congressional Republicans. Reagan's victory in the 1980 presidential campaign had united Republicans around his leadership, while conservative Democrats like Phil Gramm of Texas (who would later switch parties) were eager to back some of Reagan's conservative policies. Throughout 1981, Reagan frequently met with members of Congress, focusing especially on winning support from conservative Southern Democrats. Reagan also benefited from a conservative majority in the House during his first two years as president, with an estimated 230 votes during the 97th Congress, although this changed after the Democratic gains in the 1982 election, with House control switching to liberals within the Democratic caucus.
In July 1981, the Senate voted 89–11 in favor of the tax cut bill favored by Reagan, and the House subsequently approved the bill in a 238–195 vote.[Rossinow, pp. 61–62] The Economic Recovery Tax Act of 1981 cut the top marginal tax rate from 70% to 50%, lowered the capital gains tax
A capital gains tax (CGT) is the tax on profits realized on the sale of a non-inventory asset. The most common capital gains are realized from the sale of stocks, bonds, precious metals, real estate, and property.
Not all countries impose a c ...
from 28% to 20%, more than tripled the amount of inherited money exempt from the estate tax, and cut the corporate tax.[Leuchtenberg, pp. 599–601] Reagan's success in passing a major tax bill and cutting the federal budget was hailed as the "Reagan Revolution" by some reporters; one columnist wrote that the Reagan's legislative success represented the "most formidable domestic initiative any president has driven through since the Hundred Days
The Hundred Days (french: les Cent-Jours ), also known as the War of the Seventh Coalition, marked the period between Napoleon's return from eleven months of exile on the island of Elba to Paris on20 March 1815 and the second restorati ...
of Franklin Roosevelt
Franklin Delano Roosevelt (; ; January 30, 1882April 12, 1945), often referred to by his initials FDR, was an American politician and attorney who served as the 32nd president of the United States from 1933 until his death in 1945. As the ...
."[Patterson, p. 157]
Later tax acts
Faced with concerns about the mounting federal debt, Reagan agreed to raise taxes, signing the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA). Many of Reagan's conservative supporters condemned TEFRA, but Reagan argued that his administration would be unable to win further budget cuts without the tax hike. Among other provisions, TEFRA doubled the federal cigarette tax and rescinded a portion of the corporate tax cuts from the 1981 tax bill. By 1983, the amount of federal tax had fallen for all or almost all American taxpayers, but most strongly affected the wealthy; the proportion of income paid in taxes by the richest one percent fell from 29.8 percent to 24.8 percent. Partly due to the poor economy, Reagan's legislative momentum dissipated after his first year in office, and his party lost several seats in the House in the 1982 congressional elections.[Patterson, pp. 162–163] Compared to other midterm elections, the losses were relatively small for the party holding the presidency, but conservative Democrats were less open to Reagan's initiatives after 1982. As deficits continued to be an issue, Reagan signed another bill that raised taxes, the Deficit Reduction Act of 1984.
With Donald Regan taking over as Chief of Staff in 1985, the Reagan administration made simplification of the tax code the central focus of its second term domestic agenda. Working with Speaker of the House
The speaker of a deliberative assembly, especially a legislative body, is its presiding officer, or the chair. The title was first used in 1377 in England.
Usage
The title was first recorded in 1377 to describe the role of Thomas de Hunger ...
Tip O'Neill, a Democrat who also favored tax reform, Reagan overcame significant opposition from members of Congress in both parties to pass the Tax Reform Act of 1986. The act simplified the tax code by reducing the number of tax brackets to four and slashing a number of tax breaks. The top rate was dropped to 28%, but capital gains taxes were increased on those with the highest incomes from 20% to 28%. The increase of the lowest tax bracket from 11% to 15% was more than offset by expansion of the personal exemption, standard deduction
Under United States tax law, the standard deduction is a dollar amount that non- itemizers may subtract from their income before income tax (but not other kinds of tax, such as payroll tax) is applied. Taxpayers may choose either itemized deduc ...
, and earned income tax credit. The net result was the removal of six million poor Americans from the income tax roll and a reduction of income tax liability at all income levels. The net effect of Reagan's tax bills was that overall tax burden held steady at roughly 19 percent of gross national product.
Government spending
Reagan prioritized tax cuts over spending cuts, arguing that lower revenue would eventually require lower spending. Nonetheless, Reagan was determined to decrease government spending and roll back or dismantle Great Society programs such as Medicaid
Medicaid in the United States is a federal and state program that helps with healthcare
Health care or healthcare is the improvement of health via the prevention, diagnosis, treatment, amelioration or cure of disease, illness, injury, and ...
and the Office of Economic Opportunity. In August 1981, Reagan signed the Omnibus Budget Reconciliation Act of 1981, which cut federal funding for social programs like food stamps, school lunch programs, and Medicaid. The Comprehensive Employment and Training Act, which had provided for the employment of 300,000 workers in 1980, was also repealed, and the administration tightened eligibility for unemployment benefits.[Rossinow, p. 85] Notably absent from the budget cuts was the Department of Defense, which saw its budget bolstered.
Reagan experienced several legislative successes in his first year in office, but his attempts to cut federal domestic spending after 1981 met increasing congressional resistance. Spending on programs like Supplemental Security Income, Medicaid, the earned income tax credit, and Aid to Families with Dependent Children all increased after 1982. The number of federal civilian employees rose during Reagan's tenure, from 2.9 million to 3.1 million. Reagan's policy of New Federalism, which sought to shift the responsibility for most social programs to state governments, found little support in Congress.
In 1981, OMB Director David Stockman won Reagan's approval to seek cuts to Social Security
Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specificall ...
in 1981, but this plan was poorly-received in Congress. In 1982, Reagan established the bipartisan National Commission on Social Security Reform to make recommendations to secure the long-term integrity of Social Security. The commission rejected Social Security privatization and other major changes to the program, but recommended expanding the Social Security base (by including exempt federal and nonprofit employees), raising Social Security taxes, and reducing some payments. These recommendations were enacted in the Social Security Amendments of 1983, which received bipartisan support. While Reagan avoided cuts to Social Security and Medicare for most individuals, his administration attempted to purge many people from the Social Security disability rolls. Reagan's inability to implement major cuts to Social Security solidified its status as the " third rail" of U.S. politics, and future administrations would be reluctant to propose cuts to the popular program.
Deficits
As Reagan was unwilling to match his tax cuts with cuts to defense spending or Social Security, rising deficits became an issue. These deficits were exacerbated by the early 1980s recession
The early 1980s recession was a severe economic recession that affected much of the world between approximately the start of 1980 and 1983. It is widely considered to have been the most severe recession since World War II. A key event leading ...
, which cut into federal revenue. Unable to win further domestic spending cuts, and pressured to address the deficit, Reagan was forced to raise taxes after 1981. Nonetheless, the national debt more than tripled between fiscal year 1980 and fiscal year 1989, going from $914 billion to $2.7 trillion, while national debt as a percentage of GDP rose from 33 percent in 1981 to 53 percent in 1989. Reagan never submitted a balanced budget during his time in office.
In an effort to lower the national debt, Congress passed the Gramm–Rudman–Hollings Balanced Budget Act, which called for automatic spending cuts if Congress was unable to eliminate deficits through the regular budget-making process. However, Congress found ways around the automatic cuts and deficits continued to rise, ultimately leading to the passage of the Omnibus Budget Reconciliation Act of 1990.
Economy
Reagan took office in the midst of poor economic conditions, as the country experienced stagflation, a phenomenon in which both inflation and unemployment were high. The economy experienced a brief period of growth early in Reagan's first year in office, but plunged into a recession in July 1981. As the recession continued in the first two years of Reagan's presidency, many within Reagan's administration blamed the policies of Paul Volcker, the Chair of the Federal Reserve
The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a ...
. But Reagan himself never criticized Volcker. Volcker sought to fight inflation by pursuing a policy of "tight money" in which interest rates were set at a high level. High interest rates would restrict lending and investment, which would in turn lower inflation, raise unemployment and, at least in the short term, reduce economic growth. Unemployment reached a high of nearly 11% in 1982,[Brands, pp. 317–319] poverty
Poverty is the state of having few material possessions or little income. Poverty can have diverse < ...
rate rose from 11.7 percent to 15 percent. The country emerged from recession in 1983,[Brands, pp. 452–453] but not all shared equally in the economic recovery, and economic inequality
There are wide varieties of economic inequality, most notably income inequality measured using the distribution of income (the amount of money people are paid) and wealth inequality measured using the distribution of wealth (the amount of ...
and the number of homeless individuals both increased during the 1980s. Fearful of damaging confidence in the economic recovery, Reagan nominated Volcker to a second term in 1983, and Volcker remained in office until 1987. Inflation dropped to approximately 3.5% in 1985, while the unemployment rate fell to about 5% in 1988. In 1987, Reagan appointed conservative economist Alan Greenspan to succeed Volcker, and Greenspan would lead the Federal Reserve until 2006. Greenspan raised interest rates in another attempt to curb inflation, setting off a stock market crash in October 1987 known as " Black Monday," but the markets stabilized and recovered in the following weeks.[Brands, pp. 668–671]
Labor
In August 1981, the Professional Air Traffic Controllers Organization (PATCO), which consisted of federal employees, voted to go on a labor strike
Strike action, also called labor strike, labour strike, or simply strike, is a work stoppage caused by the mass refusal of employees to work. A strike usually takes place in response to employee grievances. Strikes became common during the I ...
in hopes of receiving better pay and benefits. After the vote, Reagan announced that the strikers would be fired if they did not return to work within forty-eight hours. After the deadline passed, Reagan fired over 10,000 air traffic controllers, while approximately 40 percent of the union members returned to work. Reagan's handling of the strike was strongly criticized by union leaders, but it won the approval of his conservative base of voters and others in the public. The breaking of the PATCO strike demoralized organized labor, and the number of strikes fell dramatically in the 1980s.[Patterson, pp. 157–158] Many of the strikes that did occur, including the Arizona copper mine strike of 1983, the 1983 Greyhound bus driver strike, and the 1985–86 Hormel strike, ended with dismissal of the strikers. With the assent of Reagan's sympathetic National Labor Relations Board
The National Labor Relations Board (NLRB) is an independent agency of the federal government of the United States with responsibilities for enforcing U.S. labor law in relation to collective bargaining and unfair labor practices. Under the Nati ...
appointees, many companies also won wage and benefit cutbacks from unions, especially in the manufacturing sector.[Rossinow, p. 87–88] During Reagan's time in office, the share of employees who were part of a labor union dropped from approximately one-fourth of the total workforce to approximately one-sixth of the total workforce.
Deregulation
Reagan sought to loosen federal regulation of economic activities, and he appointed key officials who shared this agenda. According to historian William Leuchtenburg, by 1986, the Reagan administration eliminated almost half of the federal regulations that had existed in 1981. The Federal Communications Commission
The Federal Communications Commission (FCC) is an independent agency of the United States federal government that regulates communications by radio, television, wire, satellite, and cable across the United States. The FCC maintains jurisd ...
aggressively deregulated the broadcasting industry, eliminating the Fairness Doctrine and other restrictions. The 1982 Garn–St. Germain Depository Institutions Act deregulated savings and loan association
A savings and loan association (S&L), or thrift institution, is a financial institution that specializes in accepting savings deposits and making mortgage and other loans. The terms "S&L" or "thrift" are mainly used in the United States; si ...
s and allowed banks to provide adjustable-rate mortgages. Reagan also eliminated numerous government positions and dismissed numerous federal employees, including the entire staff of the Employment and Training Administration. Secretary of the Interior James G. Watt implemented policies designed to open up federal territories to oil drilling and surface mining. Under EPA
The Environmental Protection Agency (EPA) is an independent executive agency of the United States federal government tasked with environmental protection matters. President Richard Nixon proposed the establishment of EPA on July 9, 1970; it be ...
Director Anne Gorsuch, the EPA's budget was dramatically reduced and the EPA loosely enforced environmental regulations.[Leuchtenberg, pp. 601–604]
Savings and loan crisis
After the passage of the Garn–St. Germain Depository Institutions Act, savings and loans associations engaged in riskier activities, and the leaders of some institutions embezzled funds. In what became known as the Savings and loan crisis, a total of 747 financial institutions failed and needed to be rescued with $160 billion in taxpayer dollars. As an indication of this scandal's size, Martin Mayer wrote at the time, "The theft from the taxpayer by the community that fattened on the growth of the savings and loan (S&L) industry in the 1980s is the worst public scandal in American history...Measuring by money, rby the misallocation of national resources...the S&L outrage makes Teapot Dome and Credit Mobilier seem minor episodes."
Immigration
The 1980s saw the highest rate of immigration to the United States since the 1910s, and the proportion of the foreign-born population reached its highest level since the 1940s. Reagan did not make immigration a focus of his administration, but he came to support a package of reforms sponsored by Republican Senator Alan Simpson and Democratic Congressman Romano Mazzoli
Romano Louis "Ron" Mazzoli (November 2, 1932 – November 1, 2022) was an American politician and lawyer from Kentucky.
He represented Louisville, Kentucky, and its suburbs in the United States House of Representatives from 1971 through 1995 ...
, which he signed into law as the Immigration Reform and Control Act in November 1986. The act made it illegal to knowingly hire or recruit illegal immigrants, required employers to attest to their employees' immigration status, and granted amnesty to approximately three million illegal immigrants who had entered the United States before January 1, 1982, and had lived in the country continuously. The bill was also contained provisions designed to enhance security measures at the Mexico–United States border
The Mexico–United States border ( es, frontera Estados Unidos–México) is an international border separating Mexico and the United States, extending from the Pacific Ocean in the west to the Gulf of Mexico in the east. The border trav ...
. Upon signing the act at a ceremony held beside the newly refurbished Statue of Liberty, Reagan said, "The legalization provisions in this act will go far to improve the lives of a class of individuals who now must hide in the shadows, without access to many of the benefits of a free and open society. Very soon many of these men and women will be able to step into the sunlight and, ultimately, if they choose, they may become Americans."[Reagan, Ronald. (November 6, 1986]
Statement on Signing the Immigration Reform and Control Act of 1986.
Collected Speeches, Ronald Reagan Presidential Library. Retrieved August 15, 2007. The bill was largely unsuccessful at halting illegal immigration, and the population of illegal immigrants rose from 5 million in 1986 to 11.1 million in 2013.
Criminal and anti-drug policy
Not long after being sworn into office, Reagan declared more militant policies in the "War on Drugs
The war on drugs is a global campaign, led by the United States federal government, of drug prohibition, military aid, and military intervention, with the aim of reducing the illegal drug trade in the United States.Cockburn and St. Clair, ...
". He promised a "planned, concerted campaign" against all drugs, in hopes of decreasing drug use, particularly among adolescents. The " crack epidemic," which saw a large number of individuals become addicted to crack cocaine
Crack cocaine, commonly known simply as crack, and also known as rock, is a free base form of the stimulant cocaine that can be smoked. Crack offers a short, intense high to smokers. The ''Manual of Adolescent Substance Abuse Treatment'' call ...
and may have played a role in numerous murders, emerged as a major area of public concern. First Lady Nancy Reagan made the War on Drugs her main cause as First Lady, founding the " Just Say No" drug awareness campaign.
Concerns about drug use prompted Congress to pass legislation such as the Comprehensive Crime Control Act of 1984 and the Anti-Drug Abuse Act of 1986, the latter of which granted $1.7 billion to fight drugs and established a mandatory minimum penalties for drug offenses. Reagan also signed the Anti-Drug Abuse Act of 1988, which further increased criminal penalties for drug use and established the Office of National Drug Control Policy. Critics charged that Reagan's policies promoted significant racial disparities in the prison population, were ineffective in reducing the availability of drugs or crime on the street, and came at a great financial and human cost for American society. Supporters argued that the numbers for adolescent drug users declined during Reagan's years in office.
Social policies and civil rights
Reagan was largely unable to enact his ambitious social policy agenda, which included a federal ban on abortions and an end to desegregation busing. With Reagan's support, conservative Republican Senator Jesse Helms
Jesse Alexander Helms Jr. (October 18, 1921 – July 4, 2008) was an American politician. A leader in the conservative movement, he served as a senator from North Carolina from 1973 to 2003. As chairman of the Senate Foreign Relations Committee ...
led an effort to prevent the Supreme Court from reviewing state and local laws mandating school prayer, but Republican senators like Lowell Weicker and Barry Goldwater
Barry Morris Goldwater (January 2, 1909 – May 29, 1998) was an American politician and United States Air Force officer who was a five-term U.S. Senator from Arizona (1953–1965, 1969–1987) and the United States Republican Party, Republ ...
blocked passage of Helms' bill. Despite the lack of major social policy legislation, Reagan was able to influence social policy through regulations and the appointment of conservative Supreme Court Justices.
In 1982, Reagan signed a bill extending the Voting Rights Act
The Voting Rights Act of 1965 is a landmark piece of federal legislation in the United States that prohibits racial discrimination in voting. It was signed into law by President Lyndon B. Johnson during the height of the civil rights movement ...
for 25 years after a grass-roots lobbying and legislative campaign forced him to abandon his plan to ease that law's restrictions. He also reluctantly accepted the continuation of affirmative action programs and the establishment of Martin Luther King Jr. Day as a federal holiday. The Equal Employment Opportunity Commission
The U.S. Equal Employment Opportunity Commission (EEOC) is a federal agency that was established via the Civil Rights Act of 1964 to administer and enforce civil rights laws against workplace discrimination. The EEOC investigates discrimination ...
and the Justice Department both prosecuted far fewer civil rights cases per year than they had under Carter. In 1988, Reagan vetoed the Civil Rights Restoration Act
The Civil Rights Restoration Act of 1987, or Grove City Bill, is a US, United States legislative act that specifies that entities receiving federal funds must comply with civil rights legislation in all of their operations, not just in the pro ...
, but his veto was overridden by Congress. Reagan had argued that the legislation infringed on states' rights and the rights of churches and business owners.
No civil rights legislation for gay individuals passed during Reagan's tenure. Many in the Reagan administration, including Communications Director Pat Buchanan
Patrick Joseph Buchanan (; born November 2, 1938) is an American paleoconservative political commentator, columnist, politician, and broadcaster. Buchanan was an assistant and special consultant to U.S. Presidents Richard Nixon, Gerald Ford, ...
, were hostile to the gay community, as were many religious leaders who were important allies to the administration. Gay rights and the growing HIV/AIDS
Human immunodeficiency virus infection and acquired immunodeficiency syndrome (HIV/AIDS) is a spectrum of conditions caused by infection with the human immunodeficiency virus (HIV), a retrovirus. Following initial infection an individual ...
emerged as an important matter of public concern in 1985 after it was disclosed that actor Rock Hudson, a personal friend of President Reagan, was receiving treatment for AIDS. As public anxiety over AIDS rose, the Supreme Court upheld a state law that criminalized homosexuality in the case of ''Bowers v. Hardwick
''Bowers v. Hardwick'', 478 U.S. 186 (1986), was a landmark decision of the U.S. Supreme Court that upheld, in a 5–4 ruling, the constitutionality of a Georgia sodomy law criminalizing oral and anal sex in private between consenting adults, in ...
''. Though Surgeon General C. Everett Koop advocated for a public health campaign designed to reduce the spread of AIDS by raising awareness and promoting the use of condoms, Reagan rejected Koop's proposals in favor of abstinence-only sex education. By 1989, approximately 60,000 Americans had died of AIDS, and liberals strongly criticized Reagan's response to the HIV/AIDS crisis. On the 1980 campaign trail, Reagan spoke of the gay rights movement:
Environmental policy
Reagan's strong preferences for limited federal involvement and deregulation extended to the environment. His main goal was to lessen the burden of regulation on businesses to promote more economic activity in the United States. Because of this policy, Reagan refused to renew the Clean Air Act during his administration. Reagan lessened existing regulations on pollution, cut funding to government environmental agencies, and appointed known anti-environmentalist individuals to key positions presiding over these organizations.
When Reagan took office in 1981, he "attempted to reduce" money that was directed towards studying the burgeoning field of global warming and human-driven climate change. In the early 1980s, the study of the intersection between human activity and climate change was still in its infancy and scientists were far from a consensus on the topic.
In 1987, the Reagan administration signed the Montreal Protocol
The Montreal Protocol is an international treaty
A treaty is a formal, legally binding written agreement between actors in international law. It is usually made by and between sovereign states, but can include international organization ...
in an effort to reduce emissions that damage the ozone layer
The ozone layer or ozone shield is a region of Earth's stratosphere that absorbs most of the Sun's ultraviolet radiation. It contains a high concentration of ozone (O3) in relation to other parts of the atmosphere, although still small in rel ...
.
Mass surveillance
Citing national security concerns, the president's national security team pressed for more surveillance power early during Reagan's first term. Their recommendations were based upon the premise that the federal government's intelligence
Intelligence has been defined in many ways: the capacity for abstraction, logic, understanding, self-awareness, learning, emotional knowledge, reasoning, planning, creativity, critical thinking, and problem-solving. It can be described as the ...
and counterintelligence
Counterintelligence is an activity aimed at protecting an agency's intelligence program from an opposition's intelligence service. It includes gathering information and conducting activities to prevent espionage, sabotage, assassinations or o ...
capabilities had been weakened by presidents Carter and Ford. On December 4, 1981, Reagan signed Executive Order 12333
Executive Order 12333, signed on December 4, 1981 by U.S. President Ronald Reagan, was an Executive Order intended to extend powers and responsibilities of U.S. intelligence agencies and direct the leaders of U.S. federal agencies to co-operate ...
. This presidential directive broadened the power of the government's intelligence community; mandated rules for spying on United States citizens, permanent residents, and on anyone within the United States; and also directed the Attorney General and others to create further policies and procedures for what information intelligence agencies can collect, retain, and share.
Foreign affairs
Escalation of the Cold War
Reagan escalated the Cold War, accelerating a reversal from the policy of détente which had begun in 1979 after the Soviet invasion of