Let me answer it for you. I have a certain understanding of the economy and the Cold War

You need to be concise, so I will summarize it at the beginning

1. Substantially increase bank interest rates

2. Cut taxes

3. Increase military spending to stimulate the economy - an alternative application of Keynesianism

4. Proposed the SDI plan—hyping new technologies

5, reducing public spending to a certain extent

The problems the United States faced at the time were as follows

The U.S. economy faced at that time With double-digit inflation (which will make economic planning quite unpredictable) and 20% bank interest rates (making it difficult for most people to get a mortgage), nearly 8 million people are unemployed. The average hourly wage of workers has dropped by 5% from five years ago, while the federal personal tax rate is as high as 67% on average. The national debt is nearly 1 trillion yuan.

Reagan's Economic Policies

Reagan was considered a libertarian in economics. He advocated tax cuts, downsizing, and less regulation of business.

Specific measures

The main goal of Reagan's first term was to revive the U.S. economy. At that time, the U.S. economy was in the so-called stagflation (economic stagnation coupled with high inflation). One of Reagan's first orders was to end federal controls on oil prices in order to restore domestic market dynamics in oil production and exploration.

To address double-digit inflation, Reagan supported Federal Reserve Chairman Paul Volcker's plan to dramatically raise bank interest rates to achieve his goal of reducing the money supply. Economist Milton Friedman described Reagan's understanding at the time that "financial controls and a brief recession were inevitable if inflation was to be successfully curbed."

Reagan used tight money supply combined with sweeping tax cuts to stimulate business (according to Reagan: "Chicago school economics, supply-side economics, whatever you want to call it. I noticed that some people even Call it Reaganomics until it starts to work”). Reagan's opponents ridiculed this as "voodoo economics," "trickle-down effect," and "Reaganomics," but Reagan successfully launched a comprehensive tax cut. The scale of the tax cut bill implemented in 1981 was unprecedented in American history. Tax cuts not only significantly reduce income tax rates, but also eliminate many loopholes in the tax system.

The tightening of the money supply in order to end inflation caused the U.S. economy to begin a sharp recession in July 1981 and hit the bottom in November 1982. The recession almost broke the record of the Great Depression. However, after the recession of 1981-1982, the U.S. economy began a dramatic recovery in 1983. This wave of economic growth continued for several years and did not stop until the end of Reagan's term, becoming a period of unprecedented growth in U.S. history. During the longest economic expansion, the originally high unemployment rate had fallen back to early 1981 numbers by mid-1984, and continued to fall over the next few years.

Reagan argued that tax cuts would help the economy recover and create more jobs, which would ultimately allow the federal government to obtain more tax revenue, significantly increasing from $517 billion per year in the early 1980s to more than $1 trillion. . Reagan's new military strategy increased the military budget by a large amount, causing the federal budget deficit to reach unprecedented levels.

Milton Friedman pointed out the number of Federal Registers (Federal Register, which records the regulations and regulatory documents issued by the federal government every year) during Reagan's term to illustrate Reagan's policy trend against regulation. Since the 1960s, the number of federal communications issued each year by each president has continued to increase, but the number of federal communications issued dropped sharply after Reagan took office, proving Reagan's opposition to regulation. The number of federal documents only maintained a small increase during Reagan's term, and did not begin to increase significantly until Reagan left office.

The House of Representatives, which was dominated by the Democratic Party at the time, opposed Reagan's reduction in social welfare and other domestic expenditures. Some critics believe that Reagan's policy of heavily investing the budget in the military industry actually belongs to classical Keynesian economics, and believe that the subsequent economic growth is not caused by tax cuts, but the result of large-scale expenditures.

Alarmed by the increase in social welfare spending, Reagan appointed Alan Greenspan to lead social welfare reform and formulated a plan to slow down social welfare spending. As age increases, the subsidies received from social welfare will also slowly increase (also in line with the gradual increase in the average national life expectancy), so that the system will not exceed its affordability in the next 50-70 years. This plan also increases tax revenue by increasing the payroll tax rate for social benefits.

In order to solve the budget deficit, Reagan borrowed a large amount of domestic and foreign national debt. By the time of Reagan's second term, the national debt held by the private sector had increased significantly from 26% of GDP in 1980 to 41% in 1989. %, the highest on record since 1963. In 1988, the national debt totaled 2.6 trillion U.S. dollars, and the total amount of foreign borrowing exceeded that of the country. The United States also transformed from the world's largest creditor country to the world's largest debtor country.

Reagan's economic policies increased poverty. The gap between the rich; however, during Reagan's term, incomes rose for all economic classes, including those at the bottom by 6% (U.S. Census Bureau, 1996). At the same time, the richest 1% of Americans increased their income by 1 trillion yuan (ZINN, 2003)

In addition, Reagan delivered the "Star Wars" speech on March 23, 1983, and in 1984 , the Strategic Defense Initiative Organization (SDIO) was established, with General James Alan Abrahamson, the former director of NASA's space shuttle program, as its first director to coordinate the entire program---launch The SDI plan, also known as the Star Wars Plan

This plan later stimulated the development of new economic zones in the United States---such as California, laying the foundation for the subsequent prosperity of the Clinton era

However This plan does not solve any economic problems in the short term

Hope it helps you