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Undo revision 884084 by [[Special:Contributions/Gunnut2000|Gunnut2000]] ([[User talk:Gunnut2000|talk]])
Reagan's supply-side economic policies were based on the libertarian ideas of [[Milton Friedman]] and the [[Chicago School of Economics]]. "Reaganomics" was based on the idea that tax cuts will spur savings and investment. Reagan was strongly opposed to the concept of big government, advocating a reduction in the size and budget of the federal government. During his terms in office, he faced a divided Congress split between Republican and Democratic control for six of his eight years as President. Reagan was known for forging alliances with "Blue Dog" (conservative) Democrats to overcome the apparent majority led by Democratic Speaker [[Tip O'Neill]].
In foreign affairs Reagan rejected détente with the [[Soviet Union]], but not with [[China]]. His massive defense buildup forced the Soviets to confront their crumbling financial base. He rejected the legitimacy of Communism and in the [[Reagan Doctrine]] systematically challenged and eventually destroyed Soviet strength in the Third World. After 1986 the new leadership of [[Mikhail Gorbachev]] who tried desperately to rescue Communism by cutting its losses; they came to terms with Reagan; the Communist empire collapsed in 1990 1989 a more than a year few months after Reagan left office, and Communism was abolished (and Gorbachev repudiated) by Russia in 1991. Reagan is thus (wrongly) credited with achieving victory in the Cold War.<ref> Knopf (2004)</ref>
Always distrustful of nuclear weapons, Reagan proposed SDI, a space-based system to defend against nuclear missiles. The inability of the Soviet Union to match this new technological breakthrough forced it to agree to Reagan's terms for ending the Cold War. In leading the rollback of Communism in Europe, he battled powerful liberal forces that called instead for détente (peaceful relations) with Communism. As the Soviet system faltered and Gorbachev accepted Reagan's terms, ensured an unprecedented level of nuclear disarmament. His signature phrase in dealing with Communists was "trust, but verify."
