“Ours was the first revolution in the history of mankind that truly reversed the course of government,” boasted Ronald Reagan in his farewell address in 1989. The word revolution exaggerated the change, but his administration did mark the slowdown or reversal of expanding federal budgets for domestic programs and regulations that had taken off in the 1930s. Although he did not deliver on the social or moral issues dear to the heart of the New Right, Reagan represented the “choice not an echo” that Phyllis Schlafly had called for in 1964, using his skills as “the Great Communicator” to cultivate antigovernment sentiment and undermine the liberal assumptions of the New Deal.

Antigovernment sentiment grew along with the backlash against the reforms and cultural changes of the 1960s and the conduct of the Vietnam War. Watergate and other lawbreaking by Nixon administration officials further disillusioned Americans. Presidents Ford and Carter restored morality to the White House, but neither could solve the gravest economic problems since the Great Depression—slow economic growth, stagflation, and an increasing trade deficit. Even the Democrat Carter gave higher priority to fiscal austerity than to social reform, stressed the limitations of what government could or should do, and began the government’s retreat from regulation of key industries.

A new conservative movement helped Reagan win the presidency and flourished during his administration. Reagan’s tax cuts, combined with hefty increases in defense spending, created a federal deficit crisis that justified cuts in social welfare spending, made new federal initiatives unthinkable, and burdened the country for years to come. These policies also contributed to a widening income gap between the rich and poor, weighing especially heavily on minorities, female-headed families, and children. Many Americans continued to support specific federal programs—especially those, such as Social Security and Medicare, that reached beyond the poor—but public sentiment about the government in general had taken a U-turn from the Roosevelt era. Instead of seeing the government as a helpful and problem-solving institution, many believed that it was ineffective at solving national problems and often made things worse. As Reagan appointed new justices, the Supreme Court retreated from liberalism, curbing the government’s authority to protect individual rights and regulate the economy.

With the economic recovery that set in after 1982 and his optimistic rhetoric, Reagan lifted the confidence of Americans about their nation and its promise—confidence that had eroded with the economic and foreign policy blows of the 1970s. Beginning his presidency with harsh rhetoric against the Soviet Union and a huge military buildup, he left office having helped move the two superpowers to the highest level of cooperation since the Cold War began. Although that accord was not welcomed by strong anti-Communist conservatives like Phyllis Schlafly, it signaled developments that would transform American-Soviet relations—and the world—in the next decade.