The Pentagon budget was substantially increased.
Meanwhile the first of two large tax cut measures of the Reagan Administration, both structured to benefit the richer sector of America in concert with the trickle down theory practiced by Reagan's idol Calvin Coolidge prior to the Great Depression, was initiated.
Critics warned that combining a sharp increase in defense spending while concurrently initiating a large tax cut would generate massive debt. Supply side economic theorists gleefully predicted prosperity and surpluses. They argued that the tax cut would stimulate tremendous economic growth.
The result was a tripling of the national debt from $1 to $3 trillion dollars during Reagan's two terms. A suffocating debt spiral was generated which was then sharply enhanced under George W. Bush.
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