What Was The Reagan Revolution?

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PP1070: Introduction to American Politics
What was the ‘Reagan Revolution’ and in what ways did it “change the course which American politics had followed since the 1930s”?
Presidents of the United States are expected to lead the country and find solutions to its problems, but the chances of being allowed to do marginal political steps are negligible and success is rarely accomplished. Ronald Reagan was the president successful in bringing fundamental change in American politics. He was likeable man, great communicator, who offered himself as the leader at a time when economy was a shambles and restored the nation 's confidence in the White House. His new approach was focused on the reorientation of the U.S.
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Suddenly there appeared a new concept of freedom – freedom from the state and government, opposition to Keynesian demand-stimulus economics, which shifted away the New Deal concept, “the loose set of principles and policies that has developed from 1930s to the 1979s and formed the American domestics politics“. The New Deal consisted of the government interventions, including regulations of the economy, stimulation of demand by government spending, protection of the individuals, support of labour and provision of substantial federal assistance to state and local governments and expressed the belief that federal government can solve the country 's problems and provide the prosperity and stability.

Reagan 's approach was entirely different from the previous presidencies. The two important words characterizing his term (amongst the others) are deregulation and decentralization. Reagan continued to eliminate the Nixon-era price controls - cause of constraining the free-market equilibrium in order to revive the economic activity. He removed controls on oil and gas, cable television long distance phone service, interstate bus service, ocean shipping and eased the bank regulations. In 1982, the Garn-St. Germain Depository Institutions Act was passed, which removed restrictions on loan-to-value rations for Savings and Loan banks to compete with money market
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