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Overview of Reagan's Presidency and Policies

May 19, 2025

The Reagan Presidency

The Presidency Overview

  • Ronald Reagan was elected President on November 4, 1980.
  • Heralded the rise of the new right/conservative Republican wing.
  • Reagan focused on reducing federal government involvement, cutting taxes, and lifting business restrictions.
  • Strong anti-communist stance and distrust of the Soviet Union, labeling it an "evil empire".
  • Advocated for military strengthening, supporting the MX missile system and Strategic Defense Initiative (SDI).

Economic Policy

  • Inherited an economy with double-digit inflation and high interest rates.
  • Promoted "supply side economics"; tax cuts to stimulate economic growth.
  • Enacted $39 billion in budget cuts and a 25% tax cut over three years.
  • Initial drop in inflation but led to a severe recession and high unemployment.
  • Adjusted policies to control rising deficits and interest rates, leading to economic growth and low unemployment by 1988.
  • Economic gains came with record deficits and national debt.
  • Supported free trade, including the Free Trade Agreement with Canada.

Domestic Affairs

  • Enacted major tax cuts and the Tax Reform law of 1986.
  • Supported Social Security reform and immigration legislation.
  • Expanded Medicare to protect against catastrophic health costs.
  • Appointed three Supreme Court justices, including Sandra Day O’Connor, the first female.
  • Policies often unpopular with minority groups and labor leaders.
  • Promoted federalism and private sector initiatives.
  • Nancy Reagan led the anti-drug "just say no" campaign.

Foreign Policy

  • Centered on preventing communist expansion.
  • Supported anti-communist efforts in Nicaragua, El Salvador, Grenada, and Afghanistan.
  • Advocated negotiating with the Soviet Union from a position of strength.
  • INF Treaty signed to reduce nuclear arsenals; START talks initiated.
  • Managed peaceful removals in Haiti and the Philippines.
  • Firm stance against terrorism; retaliated against Libya.
  • Iran-Contra affair was a significant scandal involving arms sales to Iran.

The Reagan Legacy

  • Reagan’s presidency led to a refocused social, business, and international agenda.
  • Strengthened the Republican Party's core beliefs: lower taxes, less government, strong military.
  • Known as "The Great Communicator," with high personal approval ratings.
  • His presidency saw the decline of the Soviet Union and the fall of the Berlin Wall.

Chronology Highlights of Reagan Presidency (1979-1989)

  • 1980: Wins presidential election.
  • 1981: Inauguration; hostages in Iran released; assassination attempt.
  • 1982: Addresses economic policies; Caribbean Basin Initiative.
  • 1983: Strategic Defense Initiative announced; invasion of Grenada.
  • 1984: Re-election; landslide victory.
  • 1985: Gorbachev becomes Soviet leader; Geneva Summit.
  • 1986: Space Shuttle Challenger disaster; Tax Reform Bill signed.
  • 1987: INF Treaty announced; "tear down this wall" speech.
  • 1988: US-USSR Moscow Summit; Canadian Free Trade Agreement.
  • 1989: Farewell address, succeeded by George H.W. Bush.