Ronald Wilson Reagan, a republican, was elected president in 1980, and he took office in
January of 1981. Reagan was the fortieth president of the United States. Reagan had
served two terms of governor in the state of California before becoming the president of
the United States of America. When Reagan took over presidency he was faced with many
foreign and domestic problems.
The relations between United Sates and the Soviet Union had reached it lowest.
Reagan straightened the military and allies in Western Europe which made the Soviet
Union angry. In 1987 Reagan signed a treaty with the Soviet Union to reduce the number
of nuclear arms in the United States and Soviet Union.
Back in the United Sates Reagan had to deal with high inflation, a recession, and
high unemployment. He got approval from Congress to have income tax cut to help
stimulate the economy.
By the end of his first term rapid inflation had stopped, unemployment had fallen
and the economy had become strong again. But the federal expenses was more the income
that budget shortages reached record levels.
Reagan's presidential campaign charged Carter about inflation and unemployment
Reagan also called to lower minimum wage law to reduce unemployment of young people.
He wanted tax reduction to stimulate business activity, this was called the supply-side
theory of economics.
In February of 1981, President Reagan proposed an economics plan with a tax cut
and wide reductions in welfare and unemployment programs. He also worked to curb
federal agencies that he thought went to far. The newspapers and magazines called the
policies Reaganomics.
In March of 1981 in Washington DC John W. Hinckley, Jr. tried to assassinate
President Reagan. The President shot in the chest but surgeons were able to remove the
bullet and the President made a full recovery. Other bullets also hit three other people one
of which was Reagan's press secretary, James S. Brady. The jury declared him insane
though and he was not convicted of attempted murder.