The Reagan Revolution
The populist conservative movement known as the New Right enjoyed unprecedented growth in the late 1970s and early 1980s. It appealed to a diverse assortment of Americans including evangelical Christians, anti-tax crusaders, advocates of a more powerful American presence abroad, disaffected white liberals and defenders of a free market with few regulations.
The movement resonated with many citizens who had once supported more liberal policies but who no longer believed the Democratic Party represented their interests.
During and after the 1980 presidential election, these disaffected former liberals came to be known as “Reagan Democrats.” They contributed millions of crucial votes to the victory of Republican Ronald Reagan, the former actor and governor of California, over incumbent Democrat Jimmy Carter.
Did you know?
At the beginning of the decade, as the Cold War showed no signs of easing, arms control advocates argued for a "nuclear freeze" agreement between the United States and the Soviet Union. In 1982, almost a million people rallied in support of the freeze in New York City's Central Park. Many historians believe this was the largest mass demonstration in American history.
Trickle-Down Economics
Reagan advocated for industrial deregulation, reductions in government spending and tax cuts for both individuals and corporations, as part of an economic plan he and his advisors referred to as “supply-side economics.” His economic and social agenda was largely shared by his across-the-pond friend, British Prime Minister Margaret Thatcher.
The resulting economic growth would allegedly “trickle down” to everyone—a controversial idea at the time, and one that's largely discredited today. George H.W. Bush, campaigning against Reagan in the 1980 primary election, referred to his opponent’s economic policy as “voodoo economics.”
Reagan’s economic policies—known as Reaganomics—initially proved less successful than its partisans had hoped, particularly when it came to a key tenet of the plan: balancing the budget.
Huge increases in military spending—during the Reagan administration, Pentagon spending would reach $34 million an hour—were not offset by spending cuts or tax increases elsewhere. This fact, plus Reagan’s militaristic posture in international affairs, earned him the nickname “Ronald Ray-Gun.”
By early 1982, the United States was experiencing its worst recession since the Great Depression. Nine million people were unemployed in November of that year. Businesses closed, families lost their homes and farmers lost their land. The economy slowly righted itself, however, and Reaganomics grew popular again.
Even the stock market crash of October 1987 did little to undermine the confidence of middle-class and wealthy Americans in the president’s economic agenda. Many also overlooked the fact that Reagan’s policies created record budget deficits: During his eight years in office, the federal government accumulated more debt than it had in its entire history.