The Reagan Years

Ronald Reagan was the pres1dent of the United States throughout most of the 1980s, from 1981 to 1989. Reagan was a conservative Republican. He believed in the theory of supply-side economic, which argued that lowering the top income tax rates would cause people to invest their savings, thus spurring economic growth overall. Under Reagan, Congress passed a plan to cut federal income taxes by 25 percent. Congress also supported Reagan in decreasing government involvement. His economic plan called for cutting back on government regulations in industry, as well as cutting back on funding for social programs.

By the mid-1980s, the economy was booming, but many critics charged that not all Americans were benefiting equally. The very small percentage of wealthiest Americans grew richer, while the incomes of the middle class fell. Spending cuts on federal programs also hurt poor people. While employment rose, joblessness remained high...