Changes

Fiscal Conservatism was rhetorically promoted during the presidency of [[Ronald Reagan]] (1981-1989). During his tenure, Reagan pushed through economic policies which became known as [[Reaganomics]]. Rooted in a belief in [[supply-side economics]], Reagan cut income taxes, raised social security taxes, deregulated the economy, and propounded a tight monetary policy to stop inflation. Reagan favored reducing the size and scope of government because it was conducive to inefficiency and corruption; he especially attacked welfare. He proposed greatly increased defense spending (which he got), reduction in income taxes (which he got), and reductions in domestic spending (which he did not get). The result was a large increase in the national debt, economic prosperity, and rapid growth. Reagan also achieved a compromise on Social Security that reduced long-term federal spending.<ref>Stein, ''Presidential Economics: The Making of Economic Policy From Roosevelt to Clinton'' (1994)</ref>

Fiscal Conservatism was rhetorically promoted during the presidency of [[Ronald Reagan]] (1981-1989). During his tenure, Reagan pushed through economic policies which became known as [[Reaganomics]]. Rooted in a belief in [[supply-side economics]], Reagan cut income taxes, raised social security taxes, deregulated the economy, and propounded a tight monetary policy to stop inflation. Reagan favored reducing the size and scope of government because it was conducive to inefficiency and corruption; he especially attacked welfare. He proposed greatly increased defense spending (which he got), reduction in income taxes (which he got), and reductions in domestic spending (which he did not get). The result was a large increase in the national debt, economic prosperity, and rapid growth. Reagan also achieved a compromise on Social Security that reduced long-term federal spending.<ref>Stein, ''Presidential Economics: The Making of Economic Policy From Roosevelt to Clinton'' (1994)</ref>

However, by the end of Reagan's second term the [[national debt]] held by the public rose from 26% of [[Gross Domestic Product|GDP]] in 1980 to 41% in 1989, the highest level since 1963. By 1988, the debt totaled $2.6 trillion. The country owed more to foreigners than it was owed, and the United States moved from being the world's largest international creditor to the world's largest debtor nation as investors around the world rushed to send their money to the U.S.<ref>[http://www.washingtonpost.com/wp-dyn/articles/A26402-2004Jun8.html See]</ref>   

However, by the end of Reagan's second term the [[national debt]] held by the public rose from 26% of [[Gross Domestic Product|GDP]] in 1980 to 41% in 1989, the highest level since 1963. By 1988, the debt totaled $2.6 trillion. The country owed more to foreigners than it was owed, and the United States moved from being the world's largest international creditor to the world's largest debtor nation as investors around the world rushed to send their money to the U.S.<ref>[https://www.washingtonpost.com/wp-dyn/articles/A26402-2004Jun8.html See]</ref>   

Under Democrat [[Bill Clinton]] the federal government ran a budget surplus and the debt went down.  

Under Democrat [[Bill Clinton]] the federal government ran a budget surplus and the debt went down.