Ronald Reagan (1981–1989): Conservative Revival and Economic Reform
- Reagan’s presidency focused on reducing the role of government in the economy and restoring national confidence after the economic problems of the 1970s.
- His policy of Reaganomics promoted tax cuts, deregulation, and cuts in social spending to encourage business growth.
- Military spending increased sharply, which helped end the Cold War but also expanded the national debt.
- Social programs were reduced, which critics said increased poverty and inequality.
- Reagan strengthened conservative values, opposing abortion and promoting traditional family ideals.
Impact on the Region
- Reagan supported anti-communist governments in Latin America through funding and training programs.
- His policies in Central America (e.g., Nicaragua, El Salvador) shaped U.S.–Latin relations for decades.
George H. W. Bush (1989–1993): Moderation and Economic Challenge
- Bush inherited large deficits and an economic slowdown after Reagan’s high spending.
- Despite promising “no new taxes,” Bush raised taxes in 1990 to reduce the budget deficit, which hurt his popularity.
- The Americans with Disabilities Act (1990) and Clean Air Act (1990) were major social achievements that promoted equality and environmental protection.
- The early 1990s recession increased unemployment and public dissatisfaction.
- Bush’s domestic challenges weakened his presidency, contributing to his defeat by Bill Clinton in 1992.
Impact on the Region:
- Bush signed the North American Free Trade Agreement (NAFTA) framework, which later took effect under Clinton.
- His focus on economic cooperation strengthened U.S.–Mexico and U.S.–Canada relations.
