The Reagan Revolution

Taking office directly after Nixon's impeachment and Carter's questionably effective presidency, Ronald Reagan was immediately faced with a mounting economic crisis, stagflation, and growing instability in the Middle East. Before winning the presidency, he had been a well-known actor and a spokesperson against the McCarthyism era during the 1950s. He held the belief that the government was the creator of the people’s problems, not that the government held the solution to solving social issues.

A New Conservatism
Many of his supporters were a part of the "New Right," a wave of conservatism that spread due to the emergence of evangelical Christians and neoconservatives during the 1960s. They were conservative in that they were against the legalization of abortion, sex education in schools, and tax hikes. Not only did they bring a Republican back into the White House, they helped Republicans claim the majority of the seats in the Senate as well.

This trend of conservatism began with the ideas of Barry Goldwater in the 1960s, that the government was growing too big and had too much power. Prior to and during Reagan's presidency, the Republican party (which had previously been a mix of liberals and conservatives) was leaning increasingly to the right. It began with the programs of President Franklin D. Roosevelt's New Deal policies in which the government took action against dropping unemployment rates and poverty. They believed that the government was doing too much and thus caused deficits, unemployment, and inflation.

With the wave of social movements and reforms during these few decades, these conservatives felt that America was turning away from its original values and goals. They saw the "new conservatism" as a way to restore the country to what they believed was its original form.

Reaganomics
Reagan's solution to the rising inflation and stagnant economy was to cut government bills and spending on programs. He decided to cut back on taxes for the top 30%, which many felt was counterproductive. His belief was that if the rich had to pay fewer taxes, they would invest more in companies and contribute more money into the economy. Then, this money would "trickle-down" into the lower classes, creating more jobs and a growing economy. This was based on a theory called "supply-side economics," where the economy would improve if the government stopped interfering and regulating industries.

While the plan seemed like a good idea in theory, data actually showed less investment, slower growth, and a decline in wages for the lower classes. While he was able to lessen the rate of inflation, he pushed the country into further economic recession and decreased investment as a whole. While unemployment dropped, our national debt rose to new heights.

Foreign Policy and the Iran-Contra Scandal
As a president during the Cold War era, Reagan was involved in fighting communism. One particular radical group in Nicaragua, the Contras, were actively trying to overthrow the communist dictatorship in their country and needed Reagan's help. He also had the goal maintain peaceful relations with the Middle East, as America had relied on that region for oil.

In 1985, the war between Iran and Iraq had escalated, with the United States being forced to get involved. A terrorist group in Lebanon had taken some Americans hostage, and demanded weapons in exchange for the release of the prisoners, as they were funded by the Iranian government. However, due to an embargo with Iran, President Reagan knew that he couldn't legally sell them the weaponry. In the end, he decided to sell weapons to Iran in exchange for the hostages.

When the events first appeared int he press, he denied contact with Iran and that there had been any exchange of sorts. However, word got out about the shipments of weapons to Iran, and he admitted that there was a sale but that it wasn't part of an arms-for-hostages deal. The scandal quickly escalated when it was found that only $12 million of the $30 million in sales had actually reached the federal government, and that the remaining $18 million had gone towards funding the Contras in Nicaragua.


The investigation on the Iran-Contra was conducted for the next eight years, with fourteen people charged with "cover-up" crimes. In the end, because Reagan couldn't be tied directly to the scandal, his image suffered but he was able to rebound.

Sources:
https://courses.lumenlearning.com/suny-ushistory2os2xmaster/chapter/the-reagan-revolution/
https://magoosh.com/hs/apush/2017/new-conservatism-apush-topics/