Reagan's presidency marked a shift towards conservative policies and limited government. His approach, dubbed "Reaganomics," focused on tax cuts, deregulation, 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 income inequality and a growing national debt.

The Reagan Revolution

Reagan's approach to governance

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 supply-side economics, known as "Reaganomics" lowered individual income tax rates and reduced top marginal tax rate from 70% to 28% (Economic Recovery Tax Act of 1981) decreased corporate tax rates to stimulate business investment and economic growth reduced government regulations on businesses to encourage entrepreneurship and competition (Garn-St. Germain Depository Institutions Act) increased defense spending and military buildup initiated Strategic Defense Initiative (SDI), also known as "Star Wars" expanded funding for development of new weapons systems and military technology (B-1 bomber, MX missile)

• Pursued aggressive tax cuts as a cornerstone of economic policy
• Championed deregulation to promote economic growth and reduce government interference

Impact of Reaganomics on society

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 ($2.7 trillion to $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 (Gini coefficient increased from 0.403 in 1980 to 0.436 in 1989)

New Right's influence on Reagan

New Right emerged as conservative political movement in 1960s and 1970s opposed social and cultural changes of 1960s, such as civil rights movement, feminism, and counterculture (Roe v. Wade) 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:

1. The Heritage Foundation, conservative think tank that promoted free-market policies and limited government
2. The Moral Majority, religious conservative organization led by Jerry Falwell that mobilized evangelical Christians as political force
3. Phyllis Schlafly, conservative activist who successfully campaigned against Equal Rights Amendment (ERA)

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 (Family Protection Act) New Right's emphasis on social conservatism and traditional values helped Reagan win support of religious conservatives and blue-collar Democrats (Reagan Democrats) movement's anti-communist stance aligned with Reagan's foreign policy views and contributed to his popularity during Cold War era (Evil Empire speech)

Reagan's Economic and Social Policies

• Promoted conservatism as a guiding principle for governance and policy-making
• Implemented neoliberal economic policies, emphasizing free markets and limited government intervention
• Strengthened ties with evangelical Christianity, incorporating religious values into political discourse
• Intensified Cold War rhetoric and policies, leading to increased military spending and tensions with the Soviet Union