Domestic policy of the Ronald Reagan administration
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This article discusses the domestic policy of the
Ronald Reagan Ronald Wilson Reagan ( ; February 6, 1911June 5, 2004) was an American politician, actor, and union leader who served as the 40th president of the United States from 1981 to 1989. He also served as the 33rd governor of California from 1967 ...
administration Administration may refer to: Management of organizations * Management, the act of directing people towards accomplishing a goal ** Administrative Assistant, traditionally known as a Secretary, or also known as an administrative officer, admini ...
from 1981 to 1989. Reagan's policies stressed conservative economic values, starting with his implementation of supply-side economic policies, dubbed as "
Reaganomics Reaganomics (; a portmanteau of ''Reagan'' and ''economics'' attributed to Paul Harvey), or Reaganism, refers to the neoliberal economic policies promoted by U.S. President Ronald Reagan during the 1980s. These policies are commonly associat ...
" by both supporters and detractors. His policies also included the largest tax cut in American history as well as increased
defense spending A military budget (or military expenditure), also known as a defense budget, is the amount of financial resources dedicated by a state to raising and maintaining an armed forces or other methods essential for defense purposes. Financing militar ...
as part of his Soviet strategy. However, he significantly raised (non-income) taxes four times due to economic conditions and reforms, but the tax reforms instituted during presidency brought top marginal rates to their lowest levels since 1931, such that by 1988, the top US marginal tax rate was 28%. Notable events included his firing of nearly 12,000 striking air traffic control workers and appointing the first woman 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 ...
bench,
Sandra Day O'Connor Sandra Day O'Connor (born March 26, 1930) is an American retired attorney and politician who served as the first female associate justice of the Supreme Court of the United States from 1981 to 2006. She was both the first woman nominated and th ...
. He believed in
federalism Federalism is a combined or compound mode of government that combines a general government (the central or "federal" government) with regional governments ( provincial, state, cantonal, territorial, or other sub-unit governments) in a single ...
and
free markets In economics, a free market is an economic system in which the prices of goods and services are determined by supply and demand expressed by sellers and buyers. Such markets, as modeled, operate without the intervention of government or any ot ...
, passed policies to encourage development of private business, and routinely criticized and defunded the
public sector The public sector, also called the state sector, is the part of the economy composed of both public services and public enterprises. Public sectors include the public goods and governmental services such as the military, law enforcement, inf ...
. Despite his support for limited government, he greatly accelerated the nation's
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, 1 ...
.


"Reaganomics" and the economy


Policies

Based on
supply-side economics Supply-side economics is a Macroeconomics, macroeconomic theory that postulates economic growth can be most effectively fostered by Tax cuts, lowering taxes, Deregulation, decreasing regulation, and allowing free trade. According to supply-sid ...
, President Reagan implemented his economic policies in 1981. The four pillars of the policies were to: # Reduce marginal tax rates on income from labor and capital. # Reduce regulation. # Tighten the
money supply In macroeconomics, the money supply (or money stock) refers to the total volume of currency held by the public at a particular point in time. There are several ways to define "money", but standard measures usually include currency in circu ...
to reduce inflation. # Reduce the growth of
government spending Government spending or expenditure includes all government consumption, investment, and transfer payments. In national income accounting, the acquisition by governments of goods and services for current use, to directly satisfy the individual ...
. By reducing or eliminating decades-long
social programs 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 specifical ...
, while at the same time lowering taxes and marginal tax rates, the President's approach to handling the economy marked a significant departure from that of many of his predecessor's
Keynesian Keynesian economics ( ; sometimes Keynesianism, named after British economist John Maynard Keynes) are the various macroeconomic theories and models of how aggregate demand (total spending in the economy) strongly influences economic output an ...
policies.
Milton Friedman Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist and statistician who received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory and the ...
, the monetarist economist who was an intellectual architect of free-market policies, was a primary influence on Reagan. When Reagan took office, the country faced the highest rate of
inflation In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduct ...
since 1947 (average annual rate of 13.5% in 1980), and
interest rates An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, th ...
as high as 13% (the
Fed funds rate In the United States, the federal funds rate is the interest rate at which depository institutions (banks and credit unions) lend reserve balances to other depository institutions overnight on an uncollateralized basis. Reserve balances a ...
in December 1980). These were considered the nation's principal economic problems and were all considered components of "
stagflation In economics, stagflation or recession-inflation is a situation in which the inflation rate is high or increasing, the economic growth rate slows, and unemployment remains steadily high. It presents a dilemma for economic policy, since actio ...
". Reagan sought to stimulate the economy with large, across-the-board
tax cuts A tax cut represents a decrease in the amount of money taken from taxpayers to go towards government revenue. Tax cuts decrease the revenue of the government and increase the disposable income of taxpayers. Tax cuts usually refer to reductions in ...
.Cannon, Lou (2001) p. 99Appleby, Joyce (2003), pp. 923–924 The expansionary fiscal policies soon became known as "
Reaganomics Reaganomics (; a portmanteau of ''Reagan'' and ''economics'' attributed to Paul Harvey), or Reaganism, refers to the neoliberal economic policies promoted by U.S. President Ronald Reagan during the 1980s. These policies are commonly associat ...
", and were considered by some to be the most serious attempt to change the course of U.S. economic policy of any administration since the
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 ...
. His radical tax reforms, in combination with a curb on domestic social spending, harsh restraints applied by the
Federal Reserve Board The Board of Governors of the Federal Reserve System, commonly known as the Federal Reserve Board, is the main governing body of the Federal Reserve System. It is charged with overseeing the Federal Reserve Banks and with helping implement the m ...
under
Paul Volcker Paul Adolph Volcker Jr. (September 5, 1927 – December 8, 2019) was an American economist who served as the 12th chairman of the Federal Reserve from 1979 to 1987. During his tenure as chairman, Volcker was widely credited with having ended th ...
on the nation's money supply, and heavy
government borrowing A country's gross government debt (also called public debt, or sovereign debt) is the financial liabilities of the government sector. Changes in government debt over time reflect primarily borrowing due to past government deficits. A deficit oc ...
required to finance the budget and trade deficits, as well as military expenditures, produced significant economic expansion and reduced inflation. Inflation was reduced by more than ten percentage points, reaching a low of 1.9% annual average inflation in 1986. One of the Reagan administration's strategies to reduce government spending was
privatization Privatization (also privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation when ...
of government functions, paying contractors to do work that government agencies had formerly done.


Economic record

President Reagan's tenure marked a time of expanded economic prosperity for many Americans. The misery index sank to 9.72 from a high of 19.33, the greatest improvement record for a President since Harry S. Truman left office. In terms of American households, the percentage of total households making less than $10,000 a year (in real 2007 dollars) shrunk from 8.8% in 1980 to 8.3% in 1988 while the percentage of households making over $75,000 went from 20.2% to 25.7% during that period. However, the number of Americans below the poverty level did not decline at all. The number of children, ages 18 years and younger, below the poverty level increased from 11.543 million in 1980, 18.3% of children, to 12.455, 19.5%, in 1988. Also, the situation of low income groups was affected by the reduction of social spending, and inequality increased. The share of total income received by the 5% highest-income households grew from 16.5% in 1980 to 18.3% in 1988 and the share of the highest fifth of income increased from 44.1% to 46.3% in same years. In contrast, the share of total income of the lowest fifth of households fell from 4.2% in 1980 to 3.8% in 1988 and the second poorest fifth from 10.2% to 9.6%. In August 1981, after negotiations with the Republican-controlled Senate and the Democratic-controlled House, Reagan signed the largest marginal tax cut in American history into law at his California ranch. However, the 1981 marginal cuts were partially offset by bracket creep and increased Social Security rates the following year. Unemployment hit a low of 5.3% in 1988 after peaking at over 10% in 1982.
Real GDP Real gross domestic product (real GDP) is a macroeconomic measure of the value of economic output adjusted for price changes (i.e. inflation or deflation). This adjustment transforms the money-value measure, nominal GDP, into an index for quantity ...
growth recovered throughout Reagan's term, averaging +3.5% per year, with a high of +7.3% in 1984. The average annual GDP growth during Reagan's presidency was the fifth highest since the Great Depression and the highest of any Republican president. Inflation decreased significantly, falling from 13.6% in 1980 to 4.1% by 1988, and 16 million new jobs were created. The net effect of all Reagan-era tax bills resulted in a 1% decrease of government revenues (as a percentage of GDP), with the revenue-shrinking effects of the 1981 tax cut (-3% of GDP) and the revenue-gaining effects of the 1982 tax hike (~+1% of GDP), while subsequent bills were more revenue-neutral. However, tax revenue itself nominally increased massively by 103.1% from 1981 through 1989, largely as a result of more loopholes abolished than tax rates lowered. During the Reagan Administration, federal receipts grew at an average rate of 8.2% (2.5% attributed to higher Social Security receipts), and federal outlays grew at an annual rate of 7.1%. Reagan's administration is the only one not to have raised the minimum wage by its conclusion. Along with these, Reagan reappointed
Paul Volcker Paul Adolph Volcker Jr. (September 5, 1927 – December 8, 2019) was an American economist who served as the 12th chairman of the Federal Reserve from 1979 to 1987. During his tenure as chairman, Volcker was widely credited with having ended th ...
as Chairman of the Federal Reserve, as well as the monetarist
Alan Greenspan Alan Greenspan (born March 6, 1926) is an American economist who served as the 13th chairman of the Federal Reserve from 1987 to 2006. He works as a private adviser and provides consulting for firms through his company, Greenspan Associates LLC. ...
to succeed him in 1987. He preserved the core New Deal safeguards, such as the
United States Securities and Exchange Commission The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against marke ...
(SEC),
Federal Deposit Insurance Corporation The Federal Deposit Insurance Corporation (FDIC) is one of two agencies that supply deposit insurance to depositors in American depository institutions, the other being the National Credit Union Administration, which regulates and insures cr ...
(FDIC), the
GI Bill The Servicemen's Readjustment Act of 1944, commonly known as the G.I. Bill, was a law that provided a range of benefits for some of the returning World War II veterans (commonly referred to as G.I.s). The original G.I. Bill expired in 1956, bu ...
and
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 specifical ...
, while rolling back what he viewed as the excesses of 1960s and 1970s liberal policies. These policies were labeled by some as "
trickle-down economics Trickle-down economics is a term used in critical references to economic policies that favor the upper income brackets, corporations, and individuals with substantial wealth or capital. In recent history, the term has been used by critics of ...
", though others argue that the combination of significant tax cuts and a massive increase in
Cold War The Cold War is a term commonly used to refer to a period of geopolitical tension between the United States and the Soviet Union and their respective allies, the Western Bloc and the Eastern Bloc. The term '' cold war'' is used because t ...
related defense spending resulted in large budget deficits, an expansion in the U.S. trade deficit, as well as the
stock market crash of 1987 Black Monday is the name commonly given to the global, sudden, severe, and largely unexpected stock market crash on Monday, October 19, 1987. In Australia and New Zealand, the day is also referred to as ''Black Tuesday'' because of the time z ...
, while also contributing to the Savings and Loan crisis. The ultimate cost of the Savings and Loan crisis is estimated to have totaled around US$150 billion, about $125 billion of which was consequently and directly subsidized by the U.S. government.
John Kenneth Galbraith John Kenneth Galbraith (October 15, 1908 – April 29, 2006), also known as Ken Galbraith, was a Canadian-American economist, diplomat, public official, and intellectual. His books on economic topics were bestsellers from the 1950s through t ...
called it "the largest and costliest venture in public misfeasance, malfeasance and larceny of all time". In order to cover new federal budget deficits, the United States borrowed heavily both domestically and abroad, raising the national debt from $997 billion to $2.85 trillion, and the United States moved from being the world's largest international creditor to the world's largest debtor nation. Reagan described the new debt as the "greatest disappointment" of his presidency.Cannon, Lou (2001) p. 128 Reagan's support for an increased defense budget at the height of the
Cold War The Cold War is a term commonly used to refer to a period of geopolitical tension between the United States and the Soviet Union and their respective allies, the Western Bloc and the Eastern Bloc. The term '' cold war'' is used because t ...
was supported by Congressional Democrats and Republicans. However, Congress was reluctant to follow Reagan's proposed cuts in domestic programs. In accordance with Reagan's less-government intervention views, many domestic government programs were cut or experienced periods of reduced funding during his presidency. These included
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 specifical ...
,
Medicaid Medicaid in the United States is a federal and state program that helps with healthcare costs for some people with limited income and resources. Medicaid also offers benefits not normally covered by Medicare, including nursing home care and per ...
,
Food Stamps In the United States, the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program, is a federal program that provides food-purchasing assistance for low- and no-income people. It is a federal aid program, ad ...
, and federal education programs. Though Reagan protected entitlement programs, such as Social Security and Medicare, in one of the most widely criticized actions of the administration, the administration attempted to purge tens of thousands of allegedly disabled people from the Social Security disability roles, who the administration alleged were not truly disabled. Funding for government organizations, including the
Environmental Protection Agency A biophysical environment is a biotic and abiotic surrounding of an organism or population, and consequently includes the factors that have an influence in their survival, development, and evolution. A biophysical environment can vary in scale ...
, were also reduced. He cut the EPA's budget by 22%, and his director of the EPA, Anne M. Burford, resigned over alleged mismanagement of funds. Tax breaks and increased military spending created a larger budget deficit, which led Reagan to approve two tax increases, aiming to preserve funding for Social Security. Speaking of Reagan himself, Donald Regan, the President's former
Secretary of the Treasury The United States secretary of the treasury is the head of the United States Department of the Treasury, and is the chief financial officer of the federal government of the United States. The secretary of the treasury serves as the principal a ...
, and later
Chief of Staff The title chief of staff (or head of staff) identifies the leader of a complex organization such as the armed forces, institution, or body of persons and it also may identify a principal staff officer (PSO), who is the coordinator of the supporti ...
, criticized him for his lack of understanding economics: "In the four years that I served as Secretary of the Treasury, I never saw President Reagan alone and never discussed economic philosophy or fiscal and monetary policy with him one-on-one. … The President never told me what he believed or what he wanted to accomplish in the field of economics." However, Reagan's chief economic adviser
Martin Feldstein Martin Stuart Feldstein ( ; November 25, 1939 – June 11, 2019) was an American economist. He was the George F. Baker Professor of Economics at Harvard University and the president emeritus of the National Bureau of Economic Research (NBE ...
, argued the opposite: "I briefed him on Third World debt; he didn't take notes, he asked very few questions. … The subject came up in a cabinet meeting and he summarized what he had heard perfectly. He had a remarkably good memory for oral presentation and could fit information into his own philosophy and make decisions on it."


Oil policy

At the beginning of his presidency, Reagan ended the
price controls Price controls are restrictions set in place and enforced by governments, on the prices that can be charged for goods and services in a market. The intent behind implementing such controls can stem from the desire to maintain affordability of good ...
on domestic oil which had been started by
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 ...
; they had contributed to both the
1973 Oil Crisis The 1973 oil crisis or first oil crisis began in October 1973 when the members of the Organization of Arab Petroleum Exporting Countries (OAPEC), led by Saudi Arabia, proclaimed an oil embargo. The embargo was targeted at nations that had su ...
and the
1979 Energy Crisis The 1979 oil crisis, also known as the 1979 Oil Shock or Second Oil Crisis, was an energy crisis caused by a drop in oil production in the wake of the Iranian Revolution. Although the global oil supply only decreased by approximately four pe ...
. The price of oil subsequently dropped, and the 1980s did not see the gasoline lines and fuel shortages that the 1970s had. Reagan also attempted to make good on his 1980 campaign promise to repeal the "Windfall Profit Tax" that Carter and Congress enacted in 1980 on domestic oil production; he was able to do so in 1988, when Congress agreed that it had increased dependence on foreign oil. The tax was not a tax on profits, but an
excise tax file:Lincoln Beer Stamp 1871.JPG, upright=1.2, 1871 U.S. Revenue stamp for 1/6 barrel of beer. Brewers would receive the stamp sheets, cut them into individual stamps, cancel them, and paste them over the Bunghole, bung of the beer barrel so when ...
on the difference between a statutory "base price" and the market price. Reagan also stopped aggressive pushing of new auto efficiency standard by Carter administration, descended on alternative energy researches started by Carter administration. However, fuel efficiency in cars and light trucks driven by Americans still increased by a larger amount between 1980 and 1990 compared to previous decades or the decades since.


Legacy

Some economists seem to think that Reagan's tax policies invigorated America's economy, such as
Nobel Prize The Nobel Prizes ( ; sv, Nobelpriset ; no, Nobelprisen ) are five separate prizes that, according to Alfred Nobel's will of 1895, are awarded to "those who, during the preceding year, have conferred the greatest benefit to humankind." Alfr ...
winner
Milton Friedman Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist and statistician who received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory and the ...
, who wrote that the Reagan tax cuts were "one of the most important factors in the boom of the 1990s". Similarly, fellow Nobel Prize–winning economist Robert A. Mundell wrote that the tax cuts made the U.S. economy the motor for the world economy in the 1990s, on which the great revolution in information technology was able to feed. Other economists argue that the deficits slowed economic growth during the following administration and was the reason that Reagan's successor, George H. W. Bush, reneged on a campaign promise and raised taxes. Nobel Prize–winning economist
Robert Solow Robert Merton Solow, GCIH (; born August 23, 1924) is an American economist whose work on the theory of economic growth culminated in the exogenous growth model named after him. He is currently Emeritus Institute Professor of Economics at th ...
stated, "As for Reagan being responsible or the 1990s boom that's far-fetched. What we got in the Reagan years was a deep recession and then half a dozen years of fine growth as we climbed out of the recession, but nothing beyond that. Another Reagan legacy was the expansion of the alternative minimum tax. When Ronald Reagan signed the
Tax Reform Act of 1986 The Tax Reform Act of 1986 (TRA) was passed by the 99th United States Congress and signed into law by President Ronald Reagan on October 22, 1986. The Tax Reform Act of 1986 was the top domestic priority of President Reagan's second term. The ...
, the AMT was expanded to target middle class deductions related to having children, owning a home, or living in high tax states. In 2006, the IRS's National Taxpayer Advocate's report highlighted the AMT as the single most serious problem with the tax code. The advocate noted that the complexity of the AMT leads to most taxpayers who owe AMT not realizing it until preparing their returns or being notified by the IRS.


Environment

Reagan dismissed proposals to halt
acid rain Acid rain is rain or any other form of precipitation that is unusually acidic, meaning that it has elevated levels of hydrogen ions (low pH). Most water, including drinking water, has a neutral pH that exists between 6.5 and 8.5, but ac ...
finding them burdensome to industry. The
Environmental Protection Agency A biophysical environment is a biotic and abiotic surrounding of an organism or population, and consequently includes the factors that have an influence in their survival, development, and evolution. A biophysical environment can vary in scale ...
made a major budget commitment to reduce acid rain; Reagan rejected the proposal and deemed it as wasteful government spending. He also questioned scientific evidence on the causes of acid rain. It was later discovered that the administration was releasing
Superfund Superfund is a United States federal environmental remediation program established by the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA). The program is administered by the Environmental Protection Agency ...
grants for cleaning up local toxic waste sites to enhance the election prospects of local officials aligned with the
Republican Party Republican Party is a name used by many political parties around the world, though the term most commonly refers to the United States' Republican Party. Republican Party may also refer to: Africa * Republican Party (Liberia) *Republican Party ...
. Reagan rarely thought about the environment in political terms, however, and did not fear that his popularity would be damaged by environmental issues. In 1986, Reagan removed the solar panels that his predecessor Carter had installed on the roof of the White House's West Wing, citing a damaged roof. In "Global Warming", the author Natalie Goldstein wrote, "Reagan's political philosophy viewed the free market as the best arbiter of what was good for the country. Corporate self-interest, he felt, would steer the country in the right direction." The HUD controversy involved administration staffers granting federal funding to constituents, and defrauding the U.S. government out of money intended for low income housing. It resulted in six convictions, including
James G. Watt James Gaius Watt (born January 31, 1938) is a public servant who served as U.S. Secretary of the Interior from 1981 to 1983. He has been described as "anti-environmentalist", and was one of Ronald Reagan's most controversial cabinet appointments ...
, Reagan's Secretary of the Interior. Watt was indicted on 24 felony counts and pleaded guilty to a single misdemeanor. He was sentenced to five years probation, and ordered to pay a $5000 fine.


Unions and corporations

In 1981, to protect domestic auto sales the Reagan administration signed an agreement with Japan that it would not import more than 1.67 million cars into the United States, which would be one in four cars sold in America.


PATCO: Air traffic controllers' strike

Reagan announced that the situation had become an emergency as described in the 1947 Taft Hartley Act, and held a
press conference A press conference or news conference is a media event in which notable individuals or organizations invite journalists to hear them speak and ask questions. Press conferences are often held by politicians, corporations, non-governmental organ ...
on August 3, 1981 in the
White House Rose Garden The White House Rose Garden is a garden bordering the Oval Office and the West Wing of the White House in Washington, D.C., United States. The garden is approximately 125 feet long and 60 feet wide ( by , or about 684m²). It balances the Jacqu ...
regarding the strike. Reagan stated that if the air traffic controllers "do not report for work within 48 hours, they have forfeited their jobs and will be terminated." Two days later, on August 5, Reagan fired 11,359 striking air traffic controllers who had ignored his order to return to work, notwithstanding the fact that the strike was illegal under federal law. The breaking of the strike had a significant impact on labor-management relations in the private sector. Although private employers nominally had the right to permanently replace striking workers under the
National Labor Relations Act The National Labor Relations Act of 1935, also known as the Wagner Act, is a foundational statute of United States labor law that guarantees the right of private sector employees to organize into trade unions, engage in collective bargaining, and ...
, that option was rarely used prior to 1981, but much more frequently thereafter. Reagan's actions essentially broke the striking union.


Military

Reagan sharply accelerated the massive military buildup started by the Carter administration in response to the Soviet intervention in
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 borde ...
. This buildup, a 40% real increase in defense spending, included the revival of the B-1 bomber program, which had been cancelled by the Carter administration; the deployment of Pershing II missiles in
West Germany West Germany is the colloquial term used to indicate the Federal Republic of Germany (FRG; german: Bundesrepublik Deutschland , BRD) between its formation on 23 May 1949 and the German reunification through the accession of East Germany on 3 ...
; the increased enlistment of thousands of troops; and a more advanced intelligence system.


Strategic Defense Initiative

In 1983, Reagan introduced the
Strategic Defense Initiative The Strategic Defense Initiative (SDI), derisively nicknamed the "''Star Wars'' program", was a proposed missile defense system intended to protect the United States from attack by ballistic strategic nuclear weapons ( intercontinental ballist ...
(SDI), a defense project. The intended goal was to make the US invulnerable to a Soviet missile attack by placing missiles in space and vaporizing those of the Soviets, upon a nuclear attack. This would be done by a laser guidance system, which grew into a series of systems that turned into a layered ballistic missile defense. Dubbed "Star Wars" by the news media, many wondered if the technological objective was attainable. Following air defense laser testing in 1973, work continued throughout the 1980s, and the first above earth laser intercept test was completed.


The arts

Though Ronald and Nancy Reagan were both former actors and he had served as president of the
Screen Actor's Guild The Screen Actors Guild (SAG) was an American labor union which represented over 100,000 film and television principal and background performers worldwide. On March 30, 2012, the union leadership announced that the SAG membership voted to m ...
, his administration had a curiously mixed record on support for the arts. Via a 1982
Executive Order In the United States, an executive order is a directive by the president of the United States that manages operations of the federal government. The legal or constitutional basis for executive orders has multiple sources. Article Two of t ...
, President Reagan established the
President's Committee on the Arts and Humanities The President's Committee on the Arts and the Humanities (PCAH) was an advisory committee to the White House on cultural issues. It worked directly with the Administration and the three primary cultural agencies: the National Endowment for the Art ...
. In each year of his presidency (except for the fiscal years of 1982 and 1986), Congress staved off the Administration's efforts to cut federal expenditures for arts programs such as the
National Endowment for the Arts The National Endowment for the Arts (NEA) is an independent agency of the United States federal government that offers support and funding for projects exhibiting artistic excellence. It was created in 1965 as an independent agency of the federal ...
. In a 1983 speech he declared, "We support the National Endowment for the Arts to stimulate excellence and make art more available to more of our people", yet throughout his administration, beginning with an early threat to cut the Carter-era arts budget in half, Reagan's economic and social agendas put him at odds, often contentiously, with artists and arts communities nationwide.


Education

Reagan's philosophy of minimal government intervention in personal and family affairs was reflected in his view of the Federal Department of Education. During the 1980 presidential campaign, Gov. Reagan called for the total elimination of the U.S. Department of Education, severe curtailment of bilingual education, and massive cutbacks in the federal role in education. When Reagan was elected in 1980, the federal share of total education spending was 12 percent. When he left office in 1988 it stood at just 6 percent. Reagan established the
National Commission on Excellence in Education The National Commission on Excellence in Education produced the 1983 report titled ''A Nation at Risk.'' It was chaired by David P. Gardner and included prominent members such as Nobel prize-winning chemist Glenn T. Seaborg. It produced a short ...
, whose inaugural meeting occurred in October 1981. The Final Report of the Commission, which was returned on April 26, 1983, noted the almost uninterrupted decline in student achievement in standardized test scores during the previous two decades, decades in which the Federal presence in education grew. High school graduates in the early 1980s scored almost 40 points below their 1963 counterparts on standard mathematical tests and 50 points lower on verbal tests. About 13 percent of 17-year-olds were considered functionally illiterate, and for minority youth, the figure was estimated to be as high as 40 percent. Remedial math courses then comprised one-fourth of all the math courses that are taught in public 4-year colleges. Reagan felt that Americans could not afford to pass students who fail to learn from one grade to the next simply because they've come to the end of the year, and that they could not afford to waste the valuable resources of higher education to remedy problems that were ignored in elementary and high schools. Four-fifths of American 17-year-olds could not write a persuasive essay. Two-thirds could not solve mathematical problems involving more than one step, and nearly 40 percent could not draw inferences from reading. An intermittent series of Radio Address to the Nation on Education were a signature of President Reagan. In September 1988, he reported on his administration's success that "Test scores are up, reversing a calamitous drop in scores over the years between 1963 and 1980. Attendance is up, and the number of kids who drop out of high school is down", and stressed that the bounty of Western civilization was owed to American children. He suggested that the report entitled ''James Madison Elementary School'', produced by Education Secretary
Bill Bennett William Richards Bennett, (April 14, 1932 – December 3, 2015) was the 27th premier of British Columbia from 1975 to 1986. He was a son of Annie Elizabeth May (Richards) and former Premier, W. A. C. Bennett. He was a 3rd cousin, twice removed ...
, be used to influence curricula at schools across the nation.


War on Drugs

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, 1 ...
". He promised a "planned, concerted campaign" against all drugs, eventually leading to decreases in adolescent drug use in America. President Reagan signed a large drug enforcement bill into law in 1986; it granted $1.7 billion to fight drugs, and ensured a mandatory minimum penalty for drug offenses. The bill was criticized for promoting significant racial disparities in the prison population, however, because of the differences in sentencing for crack versus powder cocaine. Critics also charged that the administration's policies did little to actually reduce the availability of drugs or crime on the street, while resulting in 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. As a part of the administration's effort, Reagan's
First Lady First lady is an unofficial title usually used for the wife, and occasionally used for the daughter or other female relative, of a non- monarchical head of state or chief executive. The term is also used to describe a woman seen to be at the ...
, Nancy, made the War on Drugs her main cause as First Lady, by founding the " Just Say No" drug awareness campaign. Today, there are still hundreds of "Just Say No" clinics and school clubs in operation around the country aimed at helping and rehabilitating children and teenagers with drug problems. The program demonstrated to children various ways of refusing drugs and alcohol.


The Judiciary

Reagan nominated
Sandra Day O'Connor Sandra Day O'Connor (born March 26, 1930) is an American retired attorney and politician who served as the first female associate justice of the Supreme Court of the United States from 1981 to 2006. She was both the first woman nominated and th ...
to fill the Supreme Court Justice vacancy left by the retirement of Justice
Potter Stewart Potter Stewart (January 23, 1915 – December 7, 1985) was an American lawyer and judge who served as an Associate Justice of the United States Supreme Court from 1958 to 1981. During his tenure, he made major contributions to, among other areas ...
, as he had promised during his 1980 presidential campaign. Sandra Day O'Connor was a conservative Republican and strict constructionist. Though the far-right of the Republican Party was dissatisfied by O'Connor, who refused to condemn the ''
Roe v. Wade ''Roe v. Wade'', 410 U.S. 113 (1973),. was a landmark decision of the U.S. Supreme Court in which the Court ruled that the Constitution of the United States conferred the right to have an abortion. The decision struck down many federal and st ...
'' decision and had supported the federal
Equal Rights Amendment The Equal Rights Amendment (ERA) is a proposed amendment to the United States Constitution designed to guarantee equal legal rights for all American citizens regardless of sex. Proponents assert it would end legal distinctions between men and ...
, Senate Republicans and the vast majority of Americans approved of the pick, the Senate confirming her unanimously. O'Connor would later take more moderate positions. In 1986, during his second term, the president elevated Justice
William Rehnquist William Hubbs Rehnquist ( ; October 1, 1924 – September 3, 2005) was an American attorney and jurist who served on the U.S. Supreme Court for 33 years, first as an associate justice from 1972 to 1986 and then as the 16th chief justice from ...
to succeed outgoing Chief Justice
Warren Burger Warren Earl Burger (September 17, 1907 – June 25, 1995) was an American attorney and jurist who served as the 15th chief justice of the United States from 1969 to 1986. Born in Saint Paul, Minnesota, Burger graduated from the St. Paul Colleg ...
and named
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 occupy the seat left by Rehnquist. In 1987, when Associate Justice Louis Powell retired, Reagan nominated conservative jurist
Robert Bork Robert Heron Bork (March 1, 1927 – December 19, 2012) was an American jurist who served as the solicitor general of the United States from 1973 to 1977. A professor at Yale Law School by occupation, he later served as a judge on the U.S. Cour ...
to the high court. Within 45 minutes of Bork's nomination to the Court,
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 ...
(D-MA) took to the Senate floor with a strong condemnation of Bork in a nationally televised speech, declaring, The rapid response of Kennedy's "Robert Bork's America" speech stunned the Reagan White House; though conservatives considered Kennedy's accusations slanderous ideological smears on a well qualified candidate for the bench, the attacks went unanswered for two and a half months. Bork refused to withdraw himself and his nomination was rejected 58–42.
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 Presid ...
was eventually confirmed in his place. Reagan also nominated a large number of judges to 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 co ...
and United States court of appeals benches; most of these nominations were not controversial, although a handful of candidates were singled out for criticism by civil rights advocates and other liberal critics, resulting in occasional confirmation fights. Both his Supreme Court nominations and his lower court appointments were in line with Reagan's express philosophy that judges should interpret law as enacted and not "legislate from the bench". By the end of the 1980s, a conservative majority on the Supreme Court had put an end to the perceived "activist" trend begun under the leadership of Chief Justice
Earl Warren Earl Warren (March 19, 1891 – July 9, 1974) was an American attorney, politician, and jurist who served as the 14th Chief Justice of the United States from 1953 to 1969. The Warren Court presided over a major shift in American constitutio ...
. General adherence to the principle of ''stare decisis'', along with minority support, left most of the major landmark case decisions (such as ''Brown'', ''Miranda'', and ''Roe v. Wade'') of the previous three decades still standing as binding precedent. Reagan appointed 83 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 290 judges to the United States district courts. His total of 376 appointments is the most by any president. Reagan appointed many leading conservative academics to the intermediate United States Courts of Appeals, including Bork,
Ralph K. Winter, Jr. Ralph Karl Winter Jr. (July 30, 1935 – December 8, 2020) was a United States circuit judge of the United States Court of Appeals for the Second Circuit. Education and career Born in Waterbury, Connecticut, Winter graduated from the Taft Sch ...
, Richard Posner, and Frank Easterbrook. However, he also experienced a number of judicial appointment controversies, as nine nominees for various federal appellate judgeships were not confirmed. In some cases, the nominations were not processed by the Democratic-controlled
Senate Judiciary Committee The United States Senate Committee on the Judiciary, informally the Senate Judiciary Committee, is a standing committee of 22 U.S. senators whose role is to oversee the Department of Justice (DOJ), consider executive and judicial nominations ...
before Reagan's presidency ended, while in other cases, nominees were rejected by the Senate Judiciary Committee or even blocked by unfriendly members of the Republican Party.


Response to AIDS

Perhaps the greatest criticism surrounds Reagan's silence about the
AIDS epidemic The global epidemic of HIV/AIDS (human immunodeficiency virus infection and acquired immunodeficiency syndrome) began in 1981, and is an ongoing worldwide public health issue. According to the World Health Organization (WHO), as of 2021, HIV/AI ...
in the 1980s. Although AIDS was first identified in 1981, Reagan did not mention it publicly for several more years, notably during a press conference in 1985 and several speeches in 1987. During the press conference in 1985, Reagan expressed skepticism in allowing children with
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 ma ...
to continue in school although he supported their right to do so, stating: The
CDC The Centers for Disease Control and Prevention (CDC) is the national public health agency of the United States. It is a United States federal agency, under the Department of Health and Human Services, and is headquartered in Atlanta, Georg ...
had previously issued a report stating that "casual person-to-person contact as would occur among school children appears to pose no risk." Even with the death from AIDS of his friend
Rock Hudson Rock Hudson (born Roy Harold Scherer Jr.; November 17, 1925 – October 2, 1985) was an American actor. One of the most popular movie stars of his time, he had a screen career spanning more than three decades. A prominent heartthrob in the Gold ...
, Reagan was widely criticized for not supporting more active measures to contain the spread of AIDS. Until celebrities, first
Joan Rivers Joan Alexandra Molinsky (June 8, 1933 – September 4, 2014), known professionally as Joan Rivers, was an American comedian, actress, producer, writer and television host. She was noted for her blunt, often controversial comedic persona—heavi ...
and soon afterwards
Elizabeth Taylor Dame Elizabeth Rosemond Taylor (February 27, 1932 – March 23, 2011) was a British-American actress. She began her career as a child actress in the early 1940s and was one of the most popular stars of classical Hollywood cinema in the 1950s. ...
, spoke out publicly about the increasing number of people quickly dying from this new disease, most public officials and celebrities were too afraid of dealing with this subject. Reagan prevented his Surgeon General, C. Everett Koop, from speaking out about the AIDS epidemic. When in 1986 Reagan was highly encouraged by many other public officials to authorize Koop to issue a report on the epidemic, he expected it to be in line with conservative policies; instead, Koop's ''Surgeon General's Report on Acquired Immune Deficiency Syndrome'' greatly emphasized the importance of a comprehensive AIDS education strategy, including widespread distribution of
condom A condom is a sheath-shaped Barrier contraception, barrier device used during sexual intercourse to reduce the probability of pregnancy or a Sexually transmitted disease, sexually transmitted infection (STI). There are both male and female con ...
s, and rejected mandatory testing. This approach brought Koop into conflict with other administration officials such as Education Secretary William Bennett. In 1988, Koop took the unprecedented action of mailing AIDS information to every U.S. household. This information included the use of condoms as the decisive defense against contracting the disease. Social action groups such as
ACT UP AIDS Coalition to Unleash Power (ACT UP) is an international, grassroots political group working to end the AIDS pandemic. The group works to improve the lives of people with AIDS through direct action, medical research, treatment and advocacy ...
worked to raise awareness of the AIDS problem. Because of ACT UP, in 1987, Reagan responded by appointing the Watkins Commission on AIDS, which was succeeded by a permanent advisory council. Supporters of Reagan past and present have pointed out the fact that he declared in the aforementioned September 1985 press conference that he wanted from Congress massive government research effort against AIDS similar to one President Nixon had overseen against
cancer Cancer is a group of diseases involving abnormal cell growth with the potential to invade or spread to other parts of the body. These contrast with benign tumors, which do not spread. Possible signs and symptoms include a lump, abnormal b ...
. Reagan said, "It's been one of the top priorities with us, and over the last 4 years, and including what we have in the budget for '86, it will amount to over a half a billion dollars that we have provided for research on AIDS in addition to what I'm sure other medical groups are doing." He also remarked, "Yes, there's no question about the seriousness of this and the need to find an answer." Annual AIDS related funding was $44 million in 1983, 2 years after he took office, and was $1.6 billion in 1988, an increase of over 3,600 percent.


Gay rights

No civil rights legislation for lesbian or gay individuals passed during Reagan's tenure. On the 1980 campaign trail, he spoke of the gay civil rights movement: "My criticism is that the gay movement isn't just asking for civil rights; it's asking for recognition and acceptance of an alternative lifestyle which I do not believe society can condone, nor can I."


Civil rights

Reagan opposed the
Civil Rights Act of 1964 The Civil Rights Act of 1964 () is a landmark civil rights and labor law in the United States that outlaws discrimination based on race, color, religion, sex, and national origin. It prohibits unequal application of voter registration requi ...
and the
Voting Rights Act of 1965 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 m ...
signed into law by President Lyndon B. Johnson. Reagan gave a States' Rights speech at the Neshoba County Fair in
Philadelphia, Mississippi Philadelphia is a city in and the county seat of Neshoba County, Mississippi, United States. The population was 7,118 at the 2020 census. History Philadelphia is incorporated as a municipality; it was given its current name in 1903, two years ...
, the town where the
murders of Chaney, Goodman, and Schwerner The murders of Chaney, Goodman, and Schwerner, also known as the Freedom Summer murders, the Mississippi civil rights workers' murders, or the Mississippi Burning murders, refers to events in which three activists were abducted and murdered in ...
occurred in 1964, when running for president in 1980 (many politicians had spoken at that annual fair, however). Reagan was offended that some accused him of racism. In 1980 Reagan said the Voting Rights Act was "humiliating to the South", although he later supported extending the act. He opposed Fair Housing legislation in California (the
Rumford Fair Housing Act California Proposition 14 was a November 1964 initiative ballot measure that amended the California state constitution to nullify the 1963 Rumford Fair Housing Act, thereby allowing property sellers, landlords and their agents to openly discrim ...
), but in 1988 signed a law expanding the Fair Housing Act of 1968. Reagan was unsuccessful in trying to veto another civil rights bill in March of the same year. At first Reagan opposed the Martin Luther King holiday, and signed it only after an overwhelming veto-proof majority (338 to 90 in the House of Representatives and 78 to 22 in the Senate) voted in favor of it. Congress overrode Reagan's veto of the
Civil Rights Restoration Act of 1988 The Civil Rights Restoration Act of 1987, or Grove City Bill, is a 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 progra ...
. Reagan said the Restoration Act would impose too many regulations on churches, the private sector and state and local governments. However, President Reagan established the White House Initiative on Historically Black Colleges and Universities to increase African-American participation in federal education programs and on June 29, 1982, he signed a 25-year extension of 1965 Voting Rights Act.


References


Further sources

* * * * * * *


Further reading

* * Brandt, Karl Gerard
''Ronald Reagan and the House Democrats: Gridlock, Partisanship, and the Fiscal Crisis''
(University of Missouri Press, 2009). * Brownlee, W. Elliot and Hugh Davis Graham, eds
''The Reagan Presidency: Pragmatic Conservatism and Its Legacies''
(2003) * * Flowers, Prudence. "‘A Prolife Disaster’: The Reagan Administration and the Nomination of Sandra Day O’Connor." ''Journal of Contemporary History'' 53.2 (2018): 391-414. * Hayward, Steven F. ''The Age of Reagan: The Conservative Counterrevolution, 1980–1989'' (2010), highly favorable * * Hertsgaard, Mark. (1988) ''On Bended Knee: The Press and the Reagan Presidency''. New York, New York: Farrar Straus and Giroux. * Hill, Dilys M. and Raymond A. Moore, eds. ''The Reagan Presidency'' (Palgrave Macmillan, 1990) essays by scholars; 252pp. * Jeffries, Charlie. "Adolescent women and antiabortion politics in the Reagan administration." ''Journal of American studies'' 52.1 (2018): 193-213
online
* Jones, John M., and Robert C. Rowland. "Redefining the proper role of government: Ultimate definition in Reagan’s first inaugural." ''Rhetoric and Public Affairs'' 18.4 (2015): 691-718
online
* Levy, Peter, ed. ''Encyclopedia of the Reagan-Bush years'' (1996
online
* Medhurst, Martin J. "LBJ, Reagan, and the American Dream: Competing visions of liberty." ''Presidential Studies Quarterly'' 46.1 (2016): 98-124. * * * Primuth, Richard. "Ronald Reagan's Use of Race in the 1976 and 1980 Presidential Elections." ''Georgia Historical Quarterly'' 100.1 (2016): 36-66
online
* * Rowland, Robert C., and John M. Jones. "Reagan’s farewell address: Redefining the American dream." ''Rhetoric and Public Affairs'' 20.4 (2017): 635-666. * Sharpes, Donald. "Nixon and Reagan on the Environment." ''White House Studies'' 14.1 (2014). * Spitz, Bob. ''Reagan: An American Journey'' (2018), 880pp; detailed biography. * Witcher, Marcus M. "The Failures of Revolution: Conservative Disillusion With Reagan on Social Issues." ''White House Studies'' 14.2 (2014). *


Historiography and memory

* Baumgardner, Paul. "The Law: 'Something He and His People Naturally Would Be Drawn To': The Reagan Administration and the Law‐and‐Economics Movement." ''Presidential Studies Quarterly'' 49.4 (2019): 959-975. * Ehrman, John. "The Age of Reagan? Three Questions for Future Research." ''Journal of the Historical Society'' (2011) 11#1 pp 111-131. DOI: 10.1111/j.1540-5923.2010.00324.x. * Johns, Andrew L., ed. ''A Companion to Ronald Reagan'' (Wiley-Blackwell, 2015). xiv, 682 pp.; topical essays by scholars emphasizing historiography
contents free at many libraries
* Kengor, Paul
"Reagan Among the Professors: His Surprising Reputation"
''Policy Review'' 98 (1999): 15+. Reports that "many articles in the top journals have been fair, as have a number of influential books...from respected historians, presidential scholars, and political scientists – people who were not Reagan supporters and are certainly not right-wingers." * Kunde, Meg. "Making the Free Market Moral: Ronald Reagan’s Covenantal Economy." ''Rhetoric and Public Affairs'' 22.2 (2019): 217-252. * Milkman, Ruth, and Joseph A. McCartin. "The legacy and lessons of the PATCO strike after 30 years: A dialogue." ''Labor History'' 54.2 (2013): 123-137.


External links


Supply Side Economics: Do Tax Rate Cuts Increase Growth and Revenues and Reduce Budget Deficits ? Or Is It Voodoo Economics All Over Again?
by economist Nouriel Roubini
The History of Government Economic Policy in Britain, USA & the World, including Maynard Keynes and Friedrich von Hayek ideas.
{{DEFAULTSORT:Domestic Policy Of The Reagan Administration Public policy of the Reagan administration