How have Reagan’s policies affected the government? | US Government and Civics | Khan Academy

How have Reagan’s policies affected the government? | US Government and Civics | Khan Academy


– [Man] How have President
Reagan’s policies affected the government since he left office? – What Ronald Reagan did was
set up a titanic debate really between those who believed
in the new deal view of government which was that
it was there to help those who could not help themselves
and manage an enormous economy and the enormous life of
the world’s only superpower or at least one of the two
superpowers and what that, on the new deal style, that
was what government should do. On the Reagan side, he said
get government out of the way and let American free enterprise
and individual initiative create greatness in America again and so that was just setting
up that idealogic conversation now continued all the way
through New Gingrich’s revolution in 1994 and his clashes with Bill Clinton. They were over the same kinds
of things that Ronald Reagan had brought into the debate
when he was elected in 1980. Now the challenge was that
Reagan’s defense spending and his tax cuts ballooned the deficit and what that ended up, what ended up happening is that the thing he had come to Washington to try to solve, which was the budget deficit
had actually gotten bigger, and so Reagan, who came to
town as a tax cutter ended up ultimately having to raise taxes to solve some of those problems
of having a large deficit and why is that bad? Because deficits lead to
inflation and inflation is what was strangling America
when Reagan came into office. Inflation was very high
and unemployment was high and so, his solution to
it while it kicked off a strong economic recovery also
ballooned the deficit which is a problem that is still
one they wrestle with today.

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