Title: The 1980s American Economy
Headings: The 1980s American Economy
The 1980s American Economy
Supply-Side Economics and a Growing Budget Deficit
Impact of the 1970s
Reagan's Economic Policy
The Size of the Government
Growing Federal Deficit
Federal Reserve
Source

Content: But he did spend on the military. In the wake of the disastrous Vietnam War, Reagan successfully pushed for big budget increases for defense spending by arguing that the U.S. had neglected its military. Growing Federal Deficit
In the end, the reduction in taxes combined with increased military spending outweighed the spending reductions on domestic social programs. This resulted in a federal budget deficit that went well beyond the deficit levels of the early 1980s. From $74 billion in 1980, the federal budget deficit ballooned to $221 billion in 1986. It fell back to $150 billion in 1987, but then started growing again. Federal Reserve
With such levels of deficit spending, the Federal Reserve remained vigilant about controlling price increases and raising interest rates any time they seemed a threat. Under the leadership of Paul Volcker and his successor Alan Greenspan, the Federal Reserve effectively guided America’s economy and eclipsed Congress and the president. Although some economists were nervous that heavy government spending and borrowing would lead to steep inflation, the Federal Reserve succeeded in its role as an economic traffic cop during the 1980s. Source
Conte, Christopher and Karr, Albert R. “ Outline of the U.S. Economy .”