Domestic policy of the Ronald Reagan administration

This article discusses the domestic policy of the Ronald Reagan administration from 1981 to 1989. Reagan's policies stressed conservative economic values, starting with his implementation of supply-side economic policies, dubbed as "Reaganomics" by both supporters and detractors. His policies also included the largest tax cut in American history as well as increased defense spending as part of his Soviet strategy. However, he significantly raised taxes four times due to economic conditions and reforms, but the tax reforms instituted during presidency brought top marginal rates to their lowest levels since 1931, such that by 1988, the top US marginal tax rate was 28%.

Notable events included his firing of nearly 12,000 striking air traffic control workers and appointing the first woman to the Supreme Court bench, Sandra Day O'Connor. He believed in federalism, free markets and passed policies to encourage development of private business, routinely criticizing and defunding the public sector. Despite his support for limited government, he greatly accelerated the nation's War on Drugs.

Based on supply-side economics,Reagan implemented his economic policies in 1981. The four pillars of the policies were to:

By reducing or eliminating decades-long social programs, while at the same time lowering taxes and marginal tax rates, Reagan's approach to handling the economy marked a significant departure from that of many of his predecessor's Keynesian policies. Milton Friedman, the monetarist economist who was an intellectual architect of free-market policies, was a primary influence on Reagan.

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