Was President Reagan successful in shrinking government and reducing its role in the economy?
To a certain extent. He slashed individual tax rates by 25% over three years. And he reduced business taxes further by improving depreciation allowances and research and development credits. He demanded an agency-by-agency review of government regulations. And these efforts led to increased competition and innovation in, most notably, the telecommunications and oil industries. But he failed to curb spending and as a result budget deficits soared to an average of $175 billion annually during his presidency.
