Similarly, Reagan's hard-line underlings talked him into sending arms to Iran in part by appealing to his anti-communism: They warned him of growing Soviet influence in Iran. That gambit, coupled with Reagan's disengaged management style, produced his worst foreign policy debacle, the Iran-contra scandal. Violating both the president's own policies and the law, the administration secretly sold arms to Iran in an effort to free U.S. hostages in Lebanan and strengthen supposed "moderates" in Tehran.
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Then a few of the president's men diverted the proceeds of the deal to another anti-communist crusade, the Contra rebels in Nicaragua. For months starting in late 1986, the administration was battered by charges of illegality and deception. Reagan himself was widely blamed for either approving the gambit directly or for failing to pay enough attention to what was going on in his own government. Amid concern that he was losing his grip, the 76-year-old commander in chief endured a rapid decline in his job approval rating among voters. But gradually, things turned around as he stuck to his guns and his story about not knowing about any illegalities. A congressional investigation in 1987 could not establish that Reagan had approved the illegal diversion but found he had violated his oath of office nonetheless: "For failing to take care that the law reigns supreme, the president bears the responsibility." By then, however, increasingly prosperous and secure Americans had lost interest in the scandal and Reagan's popularity rebounded. He was, his critics complained, a "Teflon president."
The Government Stops Here
In domestic policy, Reagan promised his tax cuts would stimulate the economy and increase federal revenue. The economy boomed, although not just because of his policies, while the deficit mushroomed from $78.9 billion in 1981 to more than $200 billion annually. By cutting taxes at the same time he raised defense spending, he saddled the nation with debt and set off a cycle of deficit-spending, even during expansionary periods, that changed federal budgeting—and budget politics—for more than a decade.
Yet he also succeeded in changing the nature of America's political debate from how to increase spending and federal activism to how to decrease both—or at least slow the growth. To that extent, there was indeed a Reagan revolution. "Ronald Reagan was the most important president since Franklin Roosevelt," says Republican strategist William Kristol. "If Roosevelt started the New Deal, Ronald Reagan ended it."
He did it all without the sense of anguish that plagued many of his predecessors. Early in his presidency, Reagan told a friend he didn't understand why Jimmy Carter had complained so much about the burdens of office. "This job isn't all that tough," Reagan said. "The big problem is all these meetings. Once you get used to them, you just realize you set a course and stay with it." He did, often leaving the Oval Office about 5 p.m. to have an early dinner with his wife, Nancy. They often sat at tray tables with the television tuned to an old movie or shows like "Dallas" and "Dynasty," two favorites that celebrated glitz and power.
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