What were Ronald Reagan's three main proposals as a presidential candidate?

In 1980, Reagan made his third attempt for the presidency and for the first time gained the Republican Party nomination. Reagan ran in favor of restoring what he considered a conservative vision of America and against Carter's perceived acceptance of America's waning power and prosperity. Reagan's campaign centered on three concrete promises. Reagan declared that, as president, he would:

1) Cut taxes, especially on the incomes of wealthy Americans, in order to reduce the size and power of the federal government and to encourage investment.

2) Greatly increase military spending, in order to resist the USSR and restore American influence around the globe.

3) Balance the federal government's budget. (The government had been running a deficit since the 1960s, and was in debt as a result).

Critics pointed out that Reagan's three goals could not be achieved simultaneously. They pointed out that he could not cut taxes, increase spending, and hope to balance the budget. Instead, they predicted, Reagan's proposal would only force the U.S. government deeper into debt. Reagan's proposals were based on an economic theory known as supply side economics. According to this theory, reducing taxes would actually allow the government to take in more money, because lowering tax rates would leave Americans more money to invest, which would create new industries and more jobs. The theory was called "supply side" because it was based on the belief that a successful economic policy should assist businesses that supplied products, jobs, and wealth, instead of focusing on the interests of consumers or workers.

Eventually, this supply side theory became so closely identified with the Reagan presidency that both critics and supporters called it "Reaganomics" or "trickle down economics." Reagan was especially eager to cut taxes for wealthy Americans, because doing so would free up large sums for investment. Also, he opposed progressive taxation (under which those with higher incomes are taxed at a higher rate), which he considered an unjust means of redistributing income from wealthy to poorer Americans.

Reagan avoided immersing himself in the details of government policy, concentrating broadly on his conservative philosophy and his optimistic vision of the nation's future. Carter was renowned for his attention to detail, but he paled as a campaigner. In the most telling moment of the televised 1980 presidential debate between the two candidates, Reagan asked Americans to consider the Carter presidency and "Ask yourself whether you're better off today than you were four years ago." Enough voters answered "No" to give Reagan a sizable victory in the fall election.