Changes

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 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>

====PATCO strike====

====PATCO strike====

[[File:Time-8-17-81.jpg|thumb|250px| ''Time'' Aug 17, 1981. [http://www.time.com/time/magazine/article/0,9171,949316,00.html read story]]]On 3 August 1981, 13,000 air traffic controllers, members of the Professional Air Traffic Controllers Organization (PATCO), walked off the job. PATCO had supported Reagan in the 1980 election but now was making exorbitant demands regarding high raises, early retirement, and reduced hours. The Federal Aviation Administration made a generous offer but PATCO said no and called a strike.  PATCO assumed it would shut down all air traffic and paralyze the economy, forcing the government to  surrender, but they misjudged [[Ronald Reagan]]. Under federal law, the strike was illegal. President Reagan ordered the strikers as a group to return to work. Some returned but most did not; he ordered individual strikers to return, and again most refused. Reagan was ready; secretly the Transportation Secretary Drew Lewis had readied military replacements.  It was the first time in over 50 years in a major strike that replacements were used. Two days later, the president fired 11,000 strikers, and they never were rehired. The planes were flying and labor unions suffered their worst defeat since the 1920s. Reagan's dramatic action energized corporations to resist union demands, and speeded up the rapid decline in union membership and the political power of union bosses.<ref>"Turbulence in the Tower," [http://www.time.com/time/magazine/article/0,9171,949316,00.html ''Time'' Aug. 17, 1981]; Paul L. Butterworth, et al., "More than a Labor Dispute: The PATCO Strike of 1981," ''Essays in Economic & Business History'' 2005  23:125-139</ref>

[[File:Time-8-17-81.jpg|thumb|250px| ''Time'' Aug 17, 1981. [http://www.time.com/time/magazine/article/0,9171,949316,00.html read story]]]On 3 August 1981, 13,000 air traffic controllers, members of the Professional Air Traffic Controllers Organization (PATCO), walked off the job. PATCO had supported Reagan in the 1980 election but now was making exorbitant demands regarding high raises, early retirement, and reduced hours. The Federal Aviation Administration made a generous offer but PATCO said no and called a strike.  PATCO assumed it would shut down all air traffic and paralyze the economy, forcing the government to  surrender, but they misjudged Ronald Reagan. Under federal law, the strike was illegal. Reagan ordered the strikers as a group to return to work. Some returned but most did not; he ordered individual strikers to return, and again most refused. Reagan was ready; secretly the Transportation Secretary Drew Lewis had readied military replacements.  It was the first time in over 50 years in a major strike that replacements were used. Two days later, the president fired 11,000 strikers, and they never were rehired. The planes were flying and labor unions suffered their worst defeat since the 1920s. Reagan's dramatic action energized corporations to resist union demands, and speeded up the rapid decline in union membership and the political power of union bosses.<ref>"Turbulence in the Tower," [http://www.time.com/time/magazine/article/0,9171,949316,00.html ''Time'' Aug. 17, 1981]; Paul L. Butterworth, et al., "More than a Labor Dispute: The PATCO Strike of 1981," ''Essays in Economic & Business History'' 2005  23:125-139</ref>

===Social Security Reform 1983===

===Social Security Reform 1983===