1. Chapter 41 & 42 Reagan Administration
Ronald Reagan won the election of 1980, beating Democratic president Jimmy Carter

2. Reagan's economic program called for tremendous tax cuts, amounting to 25% across-the-board reductions
For the first time in the 20th century, income gaps widened between the rich and the poor

3. 1983, Reagan announced his intention to pursue a high-technology missile-defense system called the Strategic Defense Initiative (SDI), also known as Star Wars

4. Mikhail Gorbachev became the leader of the Soviet Union
Glasnost introduced free speech and a measure of liberty
Perestroika adopted many of the free-market practices of capitalism