3. Budget cuts Tax cuts Increased defense spending

4. Budget cuts: cut in Government spending on social programs –Food stamps –Medicaid –Job training –School lunches –Student loans

5. Tax Cuts: STIMULATE PRIVATE INVESTMENT Supply-side economics: lower taxes = people saving more = banks use that money to give loans to businesses = invest in resources to improve productivity Supply goes up prices go down STIMULA

6. Deregulation: cutting back of federal regulation of industry –Eliminate federal health and safety inspections for nursing homes –CUT BUDGET OF EPA –Cut entitlement programs (welfare benefits

8. Sandra Day O’Connor first woman appointed to the Supreme Court Supreme Court becomes very Conservative Ended Liberal Control over the Supreme Court