The period starting from 1980 to 1991 was a dawn for the newly implemented international challenges and changes as sponsored by the government of the United States of America. This period was dominated by the immense influence of the Reagan administration. In 1980, Ronald Regan was elected into the presidential post, serving eight years as the president of the United States of America. In addition, this period also determined and strengthened the hegemonic leadership of the American government as the Soviet Union fell towards the end of 1980s, hence declaring the Cold War over.
At the start of this period, Reagan implemented economic policies that revolutionized and saved the declining economy of the United States. This set of economic reforms became well-known as “Reaganomics. ” This was comprised of new and aggressive fiscal policies that were meant to decrease the inflation in the American economy, and at the same time steps were taken to further establish the American economy as the strongest in the international arena.
The brief span of 1981 to 1986, certain fiscal policies have been implemented in order to keep the economic policies abreast with international changes and to save the American economy from further inflation. In 1981, the Economic Recovery Act was implemented. This was the first Fiscal Policy that was enacted and which had three components all related towards the imposition of tax cuts. In 1982, corporate taxes were imposed. And at the end of 1986, the American economy has undergone three phases, all of which were dominated by changes in the fiscal and monetary policies and expansion.
In effect, deficit rate decreased significantly as compared to the economic status experienced during the previous administrations (Looney 1995). In the field of politics, certain changes have also been made. In 1982 and 1985, the involvement of the American government in international struggles became rather pronounced. The Reagan administration opposed the retreat of the American forces during the height of the Vietnam War, and as such, he worked towards the eradication of communist ideas during his presidential term.
As such, the Reagan administration took part in defeating the communist forces that were rampant during the period. The American government took active involvement in the military struggles in Cambodia and in the Philippines. In line with this, during the Reagan era, the tensed confrontation brought by the Cold War finally ended. The 40 years of hostility was broken down at the fall of the Soviet Union towards the end of 1980s (Hodges 2000). The breakdown of the Soviet bloc and the end of the Cold War spelled out significant changes to the international order.
The Soviet Union, which was the main competitor of the United States in terms of politics, economy and military strength, posted challenge for world leadership for the United States. Hence, at the fall of the Soviet bloc, the post was left for the American government alone. Thus, at the end of the Cold War, the United States government was prompted to make certain actions that strengthened their influence in other smaller countries. Communist insurgents were greatly weakened during this period, and as such, capitalist motives were pushed forward.
Towards the end of this era, more economic policies were implemented that were geared towards globalization and liberalization. With the immense influence and power that the American government posted, most of the countries – developed and developing countries – followed the suit after America. Thus, this period was largely highlighted by the increasing influence of the United States of America towards the establishment of a globalized community which is still prevailing during this generation.