Presidency of Ronald Reagan

• 1. Conservative Political Shift

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  Ronald Reagan's tenure as the 40th president of the United States began with his first inauguration on the 20th of January 1981. His victory in the 1980 presidential election resulted from a conservative shift to the right in American politics. This movement undercut many domestic and foreign policies that had dominated the national agenda since the 1930s. A major factor was the growing distrust of government following the Watergate scandal. The media engaged in a vigorous search for scandals after high officials were implicated. An unexpected new factor was the emergence of the religious right as a cohesive political force. This group gave strong support to conservatism during the campaign. A mass movement of population from cities to suburbs created a new group of voters less attached to New Deal economic policies. It became socially acceptable for conservative Southern whites to vote Republican. These trends allowed Reagan and other conservatives to present their ideas as an alternative to public disillusionment. Reagan used his charisma and speaking skills to frame conservatism as an optimistic vision for the country.

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• 2. Economic Recovery And Taxation

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  Reagan implemented neoliberal economic policies based on supply-side economics. He advocated a laissez-faire philosophy and free-market fiscal policy. His team relied on economists like Arthur Laffer who rejected then-dominant Keynesian views. In July 1981, the Senate voted 89-11 in favor of the tax cut bill favored by Reagan. The Economic Recovery Tax Act of 1981 cut the top marginal tax rate from 70% to 50%. It also lowered the capital gains tax from 28% to 20%. By 1983, federal tax had fallen for almost all American taxpayers. The proportion of income paid in taxes by the richest one percent fell from 29.8 percent to 24.8 percent. Rising deficits became an issue because Reagan was unwilling to match tax cuts with spending reductions. The national debt more than tripled between fiscal year 1980 and fiscal year 1989. It went from $914 billion to $2.7 trillion while national debt as a percentage of GDP rose from 33 percent to 53 percent. Reagan never submitted a balanced budget during his time in office. Congress passed the Gramm-Rudman-Hollings Balanced Budget Act to lower the national debt but found ways around automatic spending cuts.

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• 3. Judicial Appointments Legacy

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  Reagan made four successful appointments to the Supreme Court during his eight years in office. In 1981, he nominated Sandra Day O'Connor to succeed Associate Justice Potter Stewart. She fulfilled a campaign promise to name the first woman to the Supreme Court. Democrats approved her nomination despite plans to oppose it vigorously. Christian right groups were dismayed fearing she would not overturn Roe v. Wade. In 1986, Reagan elevated Associate Justice William Rehnquist to Chief Justice after Warren Burger retired. He also successfully nominated Antonin Scalia to fill Rehnquist's position. Scalia became a member of the court's conservative wing. Reagan faced difficulties filling the final vacancy arising from Lewis F. Powell Jr.'s retirement. He nominated Robert Bork in July 1987 but the Senate rejected him in October. Douglas H. Ginsburg withdrew from consideration in November 1987. Finally, Reagan nominated Anthony Kennedy who won Senate confirmation in February 1988. Along with O'Connor, Kennedy served as the key swing vote on the Supreme Court for decades. Reagan appointed a combined total of 368 judges to lower federal courts more than any other president.

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• 4. Assassination Attempt Impact

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  On the 30th of March 1981, only 69 days into the new administration, Reagan was struck by gunfire outside the Washington Hilton Hotel. His press secretary James Brady and Secret Service agent Tim McCarthy were also wounded. The shooter was John Hinckley Jr. Reagan underwent surgery and recovered quickly from a broken rib and punctured lung. He was released from George Washington University Hospital on April 11. This event made him the first serving president to survive being wounded in an assassination attempt. Polls indicated his approval rating rose to around 73% following the attack. Many pundits described this failed assassination as a critical moment in Reagan's presidency. His newfound popularity provided critical momentum in passing his domestic agenda. The failure of the attempt allowed him to push through major legislative initiatives that might have stalled otherwise.

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• 5. Labor And Deregulation Policies

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  In August 1981, the Professional Air Traffic Controllers Organization voted to go on strike. Reagan announced strikers would be fired if they did not return within forty-eight hours. After the deadline passed, he fired over 10,000 air traffic controllers. Approximately 40 percent of union members returned to work. The breaking of the PATCO strike demoralized organized labor and caused strikes to fall dramatically in the 1980s. During Reagan's time in office, the share of employees who were part of a labor union dropped from one-fourth to one-sixth of the total workforce. The administration also deregulated industries like savings and loans. The 1982 Garn-St. Germain Depository Institutions Act deregulated these associations. A total of 747 financial institutions failed during what became known as the Savings and loan crisis. They needed $160 billion in taxpayer dollars for rescue. By 1986, the Reagan administration eliminated almost half of federal regulations existing in 1981. Secretary of Interior James G. Watt implemented policies opening federal territories to oil drilling.

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• 6. Cold War Escalation And Doctrine

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  Reagan escalated the Cold War by accelerating a reversal from détente which began in 1979. He feared the Soviet Union had gained a military advantage over the United States. The administration ordered a massive buildup of U.S. Armed Forces including B-1 Lancer bombers and cruise missiles. In March 1983, Reagan introduced the Strategic Defense Initiative. This project used ground and space-based systems to protect against nuclear ballistic missiles. Critics dubbed SDI Star Wars due to its resemblance to a popular film series. Under the Reagan Doctrine, the administration provided aid to anti-communist resistance movements globally. The CIA deployed Special Activities Division to Afghanistan and Pakistan. By 1987, the United States sent over $600 million annually plus weapons to Afghan Mujahideen forces. The Soviet Union announced it would withdraw from Afghanistan in 1987. The administration also authorized covert measures such as arming Nicaragua's Contras. They sought to minimize Cuban and Soviet influence in Central America and Latin America.

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• 7. Iran-Contra Scandal Fallout

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  During his second term, Reagan sought to procure release of seven American hostages held by Hezbollah. The administration decided to sell American arms to Iran then engaged in the Iran-Iraq War. Secretary of Defense Weinberger and Secretary of State Shultz opposed the arrangement so National Security Advisor Robert McFarlane handled it. The Reagan administration sold over 2000 missiles to Iran without informing Congress. On Oliver North's initiative, proceeds were redirected to fund Contra rebels fighting Nicaragua's socialist government. Transactions became public knowledge by early November 1986. A poll taken in March 1987 showed 85 percent believed the administration had engaged in an organized cover-up. The Tower Commission released a report in February 1987 confirming the trade of arms for hostages. It laid blame on North, Poindexter, and McFarlane but criticized Regan and other White House staffers. Reagan stated he was accountable for activities undertaken without his knowledge. Congressional Democrats considered impeaching him but decided against it due to political capital concerns. Investigations continued after Reagan left office until President George H. W. Bush pardoned Secretary of Defense Caspar Weinberger before trial began.

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• 8. End Of The Cold War

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  Mikhail Gorbachev came to power in 1985 after three Soviet leaders died between 1982 and 1985. He introduced twin reforms of perestroika and glasnost changing political and economic conditions. Seeking to reduce military expenditures, he re-opened negotiations with the United States over arms control. Reagan shifted to diplomacy encouraging Gorbachev to pursue substantial arms agreements. They agreed to meet at the 1985 Geneva Summit issuing a joint statement indicating neither sought military superiority. At the October 1986 Reykjavík Summit they closed in on reducing nuclear stockpiles over ten years but deal collapsed over SDI disagreements. In May 1988, the Senate voted 93-to-5 ratifying the Intermediate-Range Nuclear Forces Treaty. This agreement committed both signatories to total abolition of respective short-range and medium-range missile stockpiles. It established an inspections regime ensuring parties honored the agreement. When Reagan visited Moscow for a fourth summit in 1988 he was viewed as a celebrity by Soviets. A journalist asked if he still considered the Soviet Union the evil empire. No, he replied, I was talking about another time, another era. In December 1988, Gorbachev effectively renounced the Brezhnev Doctrine paving way for democratization in Eastern Europe.

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