Cover of American economic policy in the 1980s

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American economic policy in the 1980s

by Martin S. Feldstein

Ronald Reagan's election in 1980 reflected widespread public discontent with high inflation, rising personal taxes, and increasing government spending. Committed to reversing the economic trends of the 1960s and 1970s, Reagan sought to bring about essential changes in the American economy through smaller government and decreased spending on domestic programs. His election marked a return to traditional market-oriented ideas and a shift away from the Keynsian economics that defined the postwar decades. The policy changes he introduced included reallocation of public spending and serious...

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