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Unformatted text preview: even though the tax rate was cut. The president’s second target for action was inflation, the “silent thief” that had burdened the economy during the Ford-Carter years. Reagan resisted certain traditional cures for inflation tight money, high interest rates, and wage and price controls. He preferred two approaches unpopular with Democrats higher unemployment and weakened unions to reduce labor costs. Lower public spending a favorite Republican remedy, might have seemed one likely method of reducing inflation. But the third element of Reagan’s agenda was a sharp rise in military outlays a total of $1.5 trillion to be spent over five years. The president wanted to create an American military presence with the strength to act on one side anywhere in the world. This was a remarkably expansive goal Presidents Nixon, Ford, and Carter had all looked to scale back American commitments through either détente or by shifting burdens to allies in Western Europe....
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This note was uploaded on 01/20/2011 for the course HUM 130 taught by Professor Georgegreaves during the Fall '09 term at University of Phoenix.
- Fall '09