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There was talk of another American Revolution, but the discussion could centre on whether in themselves the policies were radical or whether because of the overall limitations of cuts and the actual rise in debt the radicalism was limited.\n\nIn terms of tax cuts, the initial reductions seemed radical but cuts in 1986 and 1987 made less impact. Also, tax cuts were offset by increases in other sectors like Social Security payments and excise taxes. The effects were not especially radical. Growth remained limited at 3.5% in 1987 and unemployment had only a marginal fall. Though Corporate Tax rates were cut from 46 to 40% it has been argued that any radical improvement from ‘trickle down’ was limited though Reagan argued that the principle of reducing business costs was radical.\n\nThe reduction in big government and deregulation was portrayed as radical but though domestic programmes were cut defence spending rose from $154b in 1981 to $295 in 1989. 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The rhetoric was radical in promising a shift away from big government, deregulation, tax and spending cuts a determination to control inflation by strict monetary policy and promote growth and a move to supply side economics away from Keynesian. There was talk of another American Revolution, but the discussion could centre on whether in themselves the policies were radical or whether because of the overall limitations of cuts and the actual rise in debt the radicalism was limited.

In terms of tax cuts, the initial reductions seemed radical but cuts in 1986 and 1987 made less impact. Also, tax cuts were offset by increases in other sectors like Social Security payments and excise taxes. The effects were not especially radical. Growth remained limited at 3.5% in 1987 and unemployment had only a marginal fall. Though Corporate Tax rates were cut from 46 to 40% it has been argued that any radical improvement from ‘trickle down’ was limited though Reagan argued that the principle of reducing business costs was radical.

The reduction in big government and deregulation was portrayed as radical but though domestic programmes were cut defence spending rose from $154b in 1981 to $295 in 1989. In a way that was radical but not in the sense that Reagan put over his supply side economics. Government spending overall increased from 1981 to 1989 by $390b. The national debt rose from $998b to $2.9b in his period of office so investment in government remained high and money was not necessarily more available for the private sector.
There was deregulation and an end to the price controls of the 1970s. Prices of oil and gas, cable TV and phones were freed. Some key elements were deregulated in transport. Whether this had a radical effect in freeing the US economy and financial sector or simulating growth can be discussed.
Considering outcomes, there was an increase in income inequality, in consumer spending and credit and a change in the balance between services and manufacturing. However, the radical shift away from federal borrowing and spending and the role of the state in economic activity was not reduced as much as changed with high levels of defence spending acting as a stimulus

The Keynesian consensus was shaken. Monetarism and supply side economics were put centre stage and some reductions made in some sectors of federal spending. Business confidence in some sectors changed radically and culturally there was more stress put on individual enterprise and responsibility. However, in terms of what was set out as a radical realignment, there was more continuity with the past.

No set judgement is expected and much depends on how ‘radical’ is defined.

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