An assignment on

American History.

Title: Achievements and Failures of Regan Administration

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 American History 05-05-2021

The Reagan Revolution refers to the dramatic shift in America’s policy-making in areas such as

taxes, the federal judiciary, defense, welfare, and the Cold War that took place under the

Reagan Administration between 1980 and 1989. Ronald Reagan became the 40th president of

America in January 1981 with the promise to restore the faith of Americans in their nation and

themselves and to defend America more aggressively against the Soviet Union. President

Ronald Regan was an advocate of the principles of conservatism and believed that it could halt

and revert the social and economic changes of the last generation.

In a nutshell, The “Reagan Revolution” was a conservative movement that sought to change

the attitudes of Americans towards their nation, government, and the world and restore the

seemingly lost American dominance on the world stage.

The greatest Achievements of the Regan administration:

The tax cuts of 1981 enacted with the Economic Recovery Tax Act of 1981 were the greatest

achievement of the Regan administration. These enactments reduced federal expenditure and

were designed to lower federal revenues. The ERTA became a watershed event in the history of

federal taxation.

The tax cuts were designed to provide incentives for individuals and businesses to work and

produce goods (supply) based on "Supply-Side economics." The cuts primarily benefited

“innovation” industries such as financial or software services. As a result, there was an

information revolution. It led to the rise of tech companies such as Microsoft, Intel, Sun

Microsystems, Dell, and Cisco Systems.

There was provision for a 25 percent reduction in marginal tax rates in the ERTA. The marginal

tax rate was more important to economic activity than the average tax rate because the

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marginal tax rate affected income earned through “extra” activities such as investment or

entrepreneurship. Reduction in marginal tax rates helped the economy grow faster. The

Economic Recovery Tax Act of 1981 along with another major tax reform act in 1986 was the

defining economic legacy of Reagan’s presidency.

Reagan’s economic policies not only led to the boom of the 1990s but also paved the way for

powerful forces of change that would result in both short- and long-term economic gains.

Another achievement of the Regan administration was that significant progress was made

toward ending the Cold War and accomplishing a genuine détente between the United States

and the U.S.S.R... Regan's administration was credited with making a great contribution to

world peace at the end of his tenure.

The greatest Failure of the Regan administration:

The Iran-Contra Affair was one of the greatest failures of president Regan in which arms were

traded for the release of American hostages held by terrorist groups in Lebanon at the

suggestion of the head of the N.S.C. (National Security Council)). The deal proved to be

extremely embarrassing to the president as it was against the publicly stated policy of the

administration to refuse to negotiate with terrorists or the countries that supported terrorism.

A more embarrassing announcement was that a portion of the deal was diverted to a secret

fund to purchase arms and supplies for the anti-communist rebels in Nicaragua.

In 1987, President Ronald Regan got the opportunity to appoint third supreme court justice and

he nominated a federal appeals court judge, Robert Bork, for the post. The appointment turned

out to be a complete failure but president Regan refused to withdraw the nomination. The

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decision not only brought embarrassment to the administration but also created a great deal of

ill-will between the administration and the senate.

In a nutshell, the Regan revolution delivered prosperity, patriotism, peace, and revived

American pride as the economy soared and the domination of the U.S.S.R. in Eastern Europe

collapsed. Today, a member of the Regan administration would feel that America may have

been at its finest in the Presidency of Ronald Reagan. He would remember Regan as optimistic,

confident, agile, and a great leader. Regan not only had a vision for America but also

acknowledged the issues such as he called the national deficit an embarrassment and a shame.

He would feel that free speech, human liberty, and spontaneity are more important today than

ever. The current administration should embrace the possibilities of a new world economy in

which national borders become obsolete and there is a need to defend against crises of

confidence that pose risks to the fundamental values.

References:

Eisner, Marc and Meier, Kenneth. (Feb. 1990). “Presidential Control versus Bureaucratic Power:

Explaining the Reagan Revolution in Antitrust”. American Journal of Political Science

Vol. 34, No. 1, pp. 269-287.

Cyr, Arthur. (Jan. 2000). “A Reagan Revolution”. After the Cold War (pp.30-61).

Peterson, Wallace. (1991). “Transfer Spending, Taxes, and the American Welfare State.” pp 95-

132.

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