some payments. These recommendations were enacted in the Social Security Amendments of 1983, which received bipartisan support. While Reagan avoided cuts to Social Security and Medicare for most individuals, his administration attempted to purge many people from the Social Security disability rolls. Reagan's inability to implement major cuts to Social Security solidified its status as the "third rail" of U.S. politics, and future administrations would be reluctant to propose cuts to the popular program. Deficits As Reagan was unwilling to match his tax cuts with cuts to defense spending or Social Security, rising deficits became an issue. These deficits were exacerbated by the early 1980s recession, which cut into federal revenue. Unable to win further domestic spending cuts, and pressured to address the deficit, Reagan was forced to raise taxes after 1981. Nonetheless, the national debt more than tripled between fiscal year 1980 and fiscal year 1989, going from $914 billion to $2.7 trillion, while national debt as a percentage of GDP rose from 33 percent in 1981 to 53 percent in 1989. Reagan never submitted a balanced budget during his time in office. In an effort to lower the national debt, Congress passed the Gramm–Rudman–Hollings Balanced Budget Act, which called for automatic spending cuts if Congress was unable to eliminate deficits through the regular budget-making process. However, Congress found ways around the automatic cuts and deficits continued to rise, ultimately leading to the passage of the Omnibus Budget Reconciliation Act of 1990. Economy Reagan took office in the midst of poor economic conditions, as the country experienced stagflation, a phenomenon in which both inflation and unemployment were high. The economy experienced a brief period of growth early in Reagan's first year in office, but plunged into a recession in July 1981. As the recession continued in the first two years of Reagan's presidency, many within Reagan's administration blamed the policies of Paul Volcker, the Chair of the Federal Reserve. But Reagan himself never criticized Volcker. Volcker sought to fight inflation by pursuing a policy of "tight money" in which interest rates were set at a high level. High interest rates would restrict lending and investment, which would in turn lower inflation, raise unemployment and, at least in the short term, reduce economic growth. Unemployment reached a high of nearly 11% in 1982, poverty rate rose from 11.7 percent to 15 percent. The country emerged from recession in 1983, but