The Reagan Revolution

By: Aaron Schwartz
Submitted: 2007-01-17 16:25:27
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The Reagan Revolution played an important role in the USA history. The defeat to Gerald Ford modified the conservative movement, the Republican Party and the USA on the whole. Reagan's opinion on such important questions as aggressive anti-Communism, tax cuts, reductions in administration spending, and the application of military power to protect the USA interests changed greatly after 1976. The significance of Reagan as a political figure and the impact of his changes on the politics and economy of the country are contradictory.

The country was tired and torn when Ronald Reagan stood for president in 1980. It faced an economic crisis inside the country - 12% inflation, lack of a state oil and lasting unemployment. It was being demeaned abroad with about 50 Americans took hostage in Iran.

Reagan inflicted a defeat on Jimmy Carter in the elections. On Inauguration Day in 1981, the USA hostages in Iran were set free and it had held for about 400 days, and the "Reagan revolution" started. Its major adversaries were big administration and high taxes.

Reagan's presidency was distinguished by discrepancies. He struggled against deficits, but he gathered the biggest deficit in the country’s history. He was an active anti-communist, though he sat down with the adversary and cut weapons. He often told about his own humble roots and presented an economic boom, though he was never really linked with the country's poor and disenfranchised.

Nevertheless, Reagan left the post being a famous president. Many people agreed with his reason that administration was too big and Americans were overtaxed. Concerning the internal and external politics, Reagan demonstrated an unshakable aura of strength and optimism. Reagan considered that America really was that brilliant country on the hill.

Consequences Of The Reagan Revolution

Some economists believe that the USA economy is still profiting from strategies worked out by President Ronald Reagan. They call attention to that people have enjoyed a 15-year growth since 1982 - broke only by an insignificant eight-month dip in the beginning of 1990s. Reagan's tax cuts contributed to a flood of new capital that gave about 5.6% annual rate of new minor business start-up from 1981 to 1989, and increased the Dow Jones Industrial Average from about 1,000 points to more than 8,000. The relaxation of state control and tax cuts combined to permit the Federal Reserve to hold up inflation that fell from 14% in 1980 to about 3% daily. Free trade has resulted in economic globalization and increased a competition all over the world and thus, greatly contributing to lower prices for customers.

Lastly, Reagan's efforts in bringing the Cold War to the end resulted in a so-called peace dividend to the federal administration worth about $100 billion annually.

The importance of the Reagan Revolution spreads beyond tax reform and a powerful defense to a return of the national goal, a reaffirmation of the common cultural convictions, a consolidation of social bonds. To my opinion the next presidents, administrations and the American nation on the whole are to maintain, strengthen, and extend what this administration has done to provide the economic well-being and the national safety.

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