The extent to which big government was reduced

• Reagan's intent

  Reagan had long stated his opposition to big government. 'Government is not the solution to our problems: government is the problem', he declared. He was determined to free the government from control by 'special interests' - e.g. racial minorities, union leaders and others who wished to attack social inequalities.
• Regulation

  Reagan was critical of the power and activities of federal regulatory agencies. He believed they were costly, heavy-handed and stifled initiatives. He appointed people who shared his conservative views into the roles of head of the agencies. Consequently there was a reduction in regulation.
• Energy

  In 1981, he announced his desire to dismantle the Department of Energy. To help alleviate the energy crisis, Reagan (by executive degree) removed the federal government's regulations on the price of domestic oil and natural gas, thus permitting a rise in the cost of both. His purpose was to:

  • Reduce consumption
  • To stimulate the search for additional energy sources by American oil and gas companies
• Environmentalism

  Reagan had little interest in 'green' issues

  • He took an anti-environmentalist position on the use of land for industrial purposes
  • Little was done to regulate the nuclear industry, which was responsible for some serious leaks from military complexes.
• Reagan's style

  Reagan gave the impression of being the opposite of a workaholic. He enjoyed his holidays at his California ranch and distanced himself from day-to-day crises. His cabinet, composed for the most part of able conservatives, had considerable freedom. But Reagan was far from a political novice.
• Organised labour

  In 1981, 12,000 air-traffic controllers, members of the Professional Air Traffic Controllers Union, violating a no-strike agreement, struck for higher wages and shorter hours. Reagan fired the workers, sent in the military and revoked the federal government's certification of the Union.
• Foreign Policy

  Reagan played an important role in foreign affairs. Determined to stand firm against the USSR, his administration supported anti-communism movements across the world. However, after 1985 he established a cordial relationship with Soviet leader Gorbachev. This is helped bring about a Nuclear Forces treaty in 1987.
• Defence

  'Defence is not a budget item', Reagan declared. 'You spend what you need'. Huge sums were spent on a variety of weapons. Reagan was particularly fascinated by the notion of a space shield that would protect the USA from Soviet missiles. This concerned Soviet leaders, who were aware that the USSR lacked the technology and money to compete with the US.