The ongoing discussion regarding the perceived reputation of President Reagan persists, with varying viewpoints on the subject. Ronald Wilson Reagan, the 40th president of the United States, was born in Tampico, Illinois on February 6, 1911. During his formative years, Reagan and his family relocated to multiple cities before finally establishing themselves in Dixon, Illinois where his father opened a shoe store (biography, 2014).
In 1928, Reagan finished high school and went on to attend Eureka College in Illinois. He excelled both academically and athletically at the college, participating in football, track, and swimming. Additionally, he actively took part in various school activities such as acting in plays and serving as the student council president (biography, 2014). After graduating from Eureka College in 1932, Reagan signed a seven-year contract with Warner Brothers studio where he acted in over 50 movies during his time as a Hollywood actor (biography, 2014). In 1964, Reagan ventured into politics by giving a televised speech that marked the beginning of his political career.
Barry Goldwater, a Republican candidate for president, later served as the governor of California and was re-elected for a second term in 1970 (biography, 2014). After two unsuccessful attempts to secure the Republican presidential nomination, Reagan finally achieved success in 1980 by defeating the incumbent Democratic president, Jimmy Carter. On January 20, 1981, he was inaugurated and became the oldest person ever elected to the United States presidency (biography, 2014). During his presidency from 1981 to 1989, Reagan implemented various economic initiatives (biography, 2014).
Ronald Reagan made a significant contribution to the economy by concentrating on money supply control and tax reduction. These measures played a role in reducing inflation and decreasing government spending (Moss & Thomas, 2013). This approach, called “Ergonomics,” had been in place for fifty years prior to Reagan’s presidency as a conservative response to the liberal welfare state (Moss & Thomas, 2013). According to Reagan, boosting investment in productive private sector enterprises could generate numerous high-paying jobs and stimulate economic growth.
The loss of revenue caused by tax cuts is counterbalanced by the increased revenue generated from a stronger economy. Both the government and citizens benefitted from favorable tax cuts. However, the implementation of “Ergonomics” during the summer of 1981 failed to achieve its intended goals, resulting in a severe recession. Business bankruptcies reached levels comparable to those seen during the Great Depression, and high interest rates made homes and cars unaffordable for millions of families. As a result, these two industries experienced a significant downturn. Furthermore, unemployment rates exceeded 9 percent, marking the highest rate since 1941.
The country experienced its worst decline since the Great Depression (Moss & Thomas, 2013). However, by 1983, the economy began to recover strongly and the surge continued into 1984. The GDP rose by 6.8 percent, which was the largest one-year gain since the Korean War. Additionally, unemployment and interest rates declined, and there was an increase in housing starts and new car sales. The inflation rate dropped to four percent for both years, marking its lowest point since the early 1980s (Moss & Thomas, 2013).
Despite the economic recovery, over 7.5 million Americans remained unemployed, and the number of people living in poverty increased by six million since Reagan took office. According to the Census Bureau, the poverty rate reached 15.2 percent in 1983, the highest it had been since 1965 (Moss & Thomas, 2013). While many economists believed that the United States enjoyed seven years of prosperity after emerging from this recession, others argued that Reagan’s policies increased the deficit and negatively impacted lower class citizensand those who were poor (biography.com Staff., n.d.). In his second term,
Reagan promised to improve this situation.
During Reggae’s administration, tax reform and immigration control were prioritized as the main legislative agendas. A new Tax Reform Act was successfully passed by congress in 1986 along with the Immigration Reform and Control Act (Moss & Thomas, 2013). However, Reagan also faced challenges such as the outbreak of AIDS and homelessness while attempting to revive the economy. By the mid-1980s, AIDS had spread across the country resulting in numerous deaths primarily among gay men (Moss & Thomas, 2013). Unfortunately, the administration’s refusal to publicly acknowledge AIDS hindered research and delayed progress in studying the disease (Moss & Thomas, 2013).
In the Reagan era, the homeless were seen as symbols of despair and lack of success. This group included a mix of people, such as those without jobs, veterans with difficult pasts, individuals struggling with substance abuse, and racial minorities. The estimated number of homeless individuals ranged from 200,000 to over one million. Although Reagan expressed sympathy for their situation, he did not establish any new federal initiatives to help reduce their suffering (Moss & Thomas, 2013). The Iran Contra affairs developed from complex covert operations carried out under the guise of advancing democracy.
During the Iraq-Iran war in 1985, Iran asked the United States to buy covert weapons. The National Security advisor believed this deal could improve relations between the United States, Iran, and Lebanon, thus increasing U.S. influence in the Middle East. He sought Reagan’s approval for this transaction; however, Reagan disagreed due to his main concern for the seven hostages held captive by Iranian terrorists in Lebanon. Instead of endorsing weapon sales, he proposed exchanging arms for hostages. As a result, more than 1,500 missiles were sent to Iran but only three captives were released while three others took their place.
Reagan denied any exchange of weapons for the release of hostages after a Lebanese newspaper exposed the situation. The investigation, led by Attorney General Edwin Mess, revealed that only $12 million out of the reported $30 million paid by Iranians had been received by the government. Lieutenant Colonel Oliver North from the National Security Council admitted to diverting funds from arms sales in order to support the Contras, and he claimed that National Security Adviser Admiral John Pinpointed was aware of these actions. North also believed that Reagan had knowledge of these actions.
Although the Iran-contra scandal did not provide any evidence linking Reagan to the diversion (PBS, 2013), he is still considered a legendary figure in US history. Reagan is praised for successfully reducing inflation and bringing an end to the long cold war. When he left office in 1989, Reagan had the highest approval rating of any president since Franklin Roosevelt. Nevertheless, his presidency faced several challenges such as an early recession, increasing homelessness, and the Iran-Contra scandal.
