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A stock market crash in 1987 raised questions about
the nation's economic health. A new bill to balance the federal budget became
law in 1987, but the huge deficit continued to be a concern to the government.
Congress passed Reagan's requests for cuts in taxes and in some government
programs. Reagan also won increased funds for defense...
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Reagan also won increased funds for defense. By 1982, however, the
country was in an recession, which meant that there was an extended decline in
general business activity, typically three consecutive quarters of falling real
gross national product. The economy improved in 1983. But the increased defense
spending and tax cut had led to a record budget deficit...
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