t followed. The rate of government spending actually increased two percentage points instead of declining four percent as stated in the agenda. This six percent swing accounts for a large portion of the deficit. The reasons for this fluctuation in spending are due to lack of spending restraint and a sharp increase in military spending (Meyer 69). Office of Management and Budget David Brockman continually harped on Reagan to cut defense spending to make up the difference, but the President stated that military spending was not going to be a part of the balanced budget and was “off limits” (Lammers 104). The problems in El Salvador and the Iran Contra Scandal were Presidential initiatives President Reagan chose to follow during the peak of the Cold War. Large chunks of money went into the Central American “Hot War”, for President Reagan felt it was a must. “El Salvador became per square mile one of the most heavily armed nations in the world” (Armstrong 33). This spending was legitimate, for shortly after the scandal in Central America the fall of the Soviet Union became real. Thus two conclusions can be made. President Reagan’s inability to eliminate the … “waste, fraud and abuse” (Lammers 128) in government spending eliminated the chance for a balanced budget. Yet, the timing of Cold War complications resulted in higher military spending that, if left tranquil, might have produced a negative outcome. Therefore Reagan was guilty of lack of domestic restraint but no one can attest to a strong and formidable fight against standing up to the Soviet Union at the end of a forty-year war.Morris 10The Manipulation of the Labor SupplyAnother primary goal of the supply-side theory, labor supply, was set in place to create entrepreneurship, higher work effort, and a strong American capitalistic mindset. The two initiatives Reagan placed were indeed successful. His first poli...
