Changes

*Control the money supply to reduce inflation.

*Control the money supply to reduce inflation.

Fueled by an over spending [[Congress]] that steadfastly refused Reagan's budget proposals, the national debt increased 160% during his two terms in office. However, the economic growth that resulted from tax cuts made deficits as a percentage of [[GDP]] lower than what they had been in during the previous decade of stagflation. The period of high [[inflation]] and [[unemployment]] when Reagan took office was over after eight years of his Presidency. In 1986 Reagan signed the [[Tax Reform Act]], which obtained an overhaul of the income tax code and eliminated many deductions and exempted millions of people with low incomes. The [[income tax]] rates of the top personal tax bracket dropped from 70% to 28% in 7 years. At the end of his administration, the Nation was enjoying its longest recorded period of peacetime prosperity without [[recession]] or [[depression]].<ref>http://www.whitehouse.gov/history/presidents/rr40.html</ref>

Fueled by his poor economic policies, extremely high defense spending and a congress that spent less than what was asked for in Reagan's budget proposals, the national debt increased 160% during his two terms in office. However, the economic growth that resulted from tax cuts made deficits as a percentage of [[GDP]] lower than what they had been in during the previous decade of stagflation. The period of high [[inflation]] and [[unemployment]] when Reagan took office was over after eight years of his Presidency. In 1986 Reagan signed the [[Tax Reform Act]], which obtained an overhaul of the income tax code and eliminated many deductions and exempted millions of people with low incomes. The [[income tax]] rates of the top personal tax bracket dropped from 70% to 28% in 7 years. At the end of his administration, the Nation was enjoying its longest recorded period of peacetime prosperity without [[recession]] or [[depression]].<ref>http://www.whitehouse.gov/history/presidents/rr40.html</ref>

 

===Social Security Reform 1983===

===Social Security Reform 1983===

Mounting concerns that rising Social Security benefits were causing a long-term deficit and were growing too fast resulted in a bipartisan compromise in 1983. Brokered by conservative [[Alan Greenspan]] and liberal [[Claude Pepper]], the agreement lowered benefits over the next 75 years and brought the system into balance. Key provisions included a gradual increase over 25 years in the retirement age from 65 to 67, to take account of longer life expectancy. (People could retire younger, but at a reduced rate of benefits.) Millions of people were added to the system, especially employees of state governments and of nonprofit organizations.<ref> 1983 Greenspan Commission on Social Security Reform (1983) [http://www.ssa.gov/history/reports/gspan5.html online version]; "Claude Pepper and Social Security Reform - 1981-1983," [http://www.claudepeppercenter.fsu.edu/webexhibits/socialsecurityreform/socialsecurityreform1981to1983.htm online exhibit]; Paul Charles Light, ''Artful Work: The Politics of Social Security Reform'' (1985)</ref>

Mounting concerns that rising Social Security benefits were causing a long-term deficit and were growing too fast resulted in a bipartisan compromise in 1983. Brokered by conservative [[Alan Greenspan]] and liberal [[Claude Pepper]], the agreement lowered benefits over the next 75 years and brought the system into balance. Key provisions included a gradual increase over 25 years in the retirement age from 65 to 67, to take account of longer life expectancy. (People could retire younger, but at a reduced rate of benefits.) Millions of people were added to the system, especially employees of state governments and of nonprofit organizations.<ref> 1983 Greenspan Commission on Social Security Reform (1983) [http://www.ssa.gov/history/reports/gspan5.html online version]; "Claude Pepper and Social Security Reform - 1981-1983," [http://www.claudepeppercenter.fsu.edu/webexhibits/socialsecurityreform/socialsecurityreform1981to1983.htm online exhibit]; Paul Charles Light, ''Artful Work: The Politics of Social Security Reform'' (1985)</ref>