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reducing government oversight on trade, and allowing for foreign investment in Soviet industryReagan Doctrine – President Reagan's foreign policy of supporting anti-communist revolutions, through direct and indirect means, during the Cold WarReaganomics – term used to describe President Reagan's economic policies during the 1980s, which included reducing taxes, limiting government spending on social programs, and decreasing regulations on businesses and the economyRust Belt – an informal name for portions of the Midwest and Northeast which were major industrial and manufacturing centers in the late 19th and early 20th centuriesSun Belt – an informal name for the South and Southwest, which tend to have warmer climates and large population growth from the 1960s to the present2. ReagonomicsUsually, incumbent president had the advantage in an election; however, this was not the case in the 1980 election when Conservative Ronald Reagan, a former actor, won theelection.The population was booming in "Sun Belt" states like Florida, Texas, and California while many northern cities experienced loss. Members of the "New Right," American conservatives stressing a return to traditional social values and behaviour, were concentrated in the South. They played a key role in Reagan's win, helping him carry 44 of the 50 states.Many trusted his ability to fix the economy.
Displaced workers left the “Rust Belt” (Midwest and Northeast where manufacturing was big)for the "Sun Belt" in search of jobs and lower taxes.Air conditioning became commonplace in homes and made warmer climates in the South and Southwest more attractive. Immigration, especially from Mexico and South America, also increased populations in the South and West.South and West populations grew rapidly.Reagan’s PlanoReagan's plan for the economy focused on cutting taxes, reducing the size of government, and eliminating certain controls over business, called deregulation.oDeregulationincluded removing rules that forced car and truck companies to reduce the emissions of their products and increase safety features.oAlso relaxed rules in banking and savings and loan industries to help encourage loans for people to buy houses and start businesses. oIdea behind the plan was to put more money in the pockets of people and businesses so they would purchase more things, increase innovation, reduce unemployment, and lower inflation. oAll of which would help to make U.S. businesses more competitive in the world.oCongress approved a massive income tax cut. oSince that would reduce the government's ability to fund programs, Congress also approved some of Reagan's proposed cuts to spending such as to student loans, job training, and mass transportation development.