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In 2017, a C-SPAN survey of scholars ranked Reagan in terms of leadership in comparison with all 42 presidents. He ranked number nine in international relations.

The couple's relationship was close, authentic and intimate. During his presidency, they often displayed affection for one another; one press secretary said, "They never took each other for granted. They never stopped courting." He often called her "Mommy", and she called him "Ronnie." He once wrote to her, "Whatever I treasure and enjoy  ... all would be without meaning if I didn't have you." In 1998, while he was stricken by Alzheimer's, Nancy told Vanity Fair, "Our relationship is very special. We were very much in love and still are. When I say my life began with Ronnie, well, it's true. It did. I can't imagine life without him." Nancy Reagan died on March 6, 2016, at the age of 94.

Kings Row made Reagan a star—Warner immediately tripled his salary to $3,000 a week. Early in 1942, he was ordered to military active duty in San Francisco and never became a true film star. After his wartime military service he co-starred in such films as The Voice of the Turtle, John Loves Mary, The Hasty Heart, Bedtime for Bonzo, Cattle Queen of Montana, Tennessee's Partner, Hellcats of the Navy (the only film in which he appears with Nancy Reagan), and the 1964 remake The Killers (his final film). Throughout his film career, Reagan's mother answered much of his fan mail.

The first time that this word "Communist" was ever injected into any of the meetings concerning the strike was at a meeting in Chicago with Mr. William Hutchinson, president of the United Brotherhood of Carpenters and Joiners, who were on strike at the time. He asked the Screen Actors Guild to submit terms to Mr. Walsh, for Walsh to give in the settling of this strike, and he told us to tell Mr. Walsh that if he would give in on these terms he in turn would run this Sorrell and the other Commies out—I am quoting him—and break it up.

The Founding Fathers knew a government can't control the economy without controlling people. And they knew when a government sets out to do that, it must use force and coercion to achieve its purpose. So we have come to a time for choosing ... You and I are told we must choose between a left or right, but I suggest there is no such thing as a left or right. There is only an up or down. Up to man's age-old dream—the maximum of individual freedom consistent with order—or down to the ant heap of totalitarianism.

Reagan's policies proposed that economic growth would occur when marginal tax rates were low enough to spur investment, which would then lead to higher employment and wages. Critics labeled this "trickle-down economics"—the belief that tax policies that benefit the wealthy will create a "trickle-down" effect reaching the poor. Questions arose whether Reagan's policies benefited the wealthy more than those living in poverty, and many poor and minority citizens viewed Reagan as indifferent to their struggles. These views were exacerbated by the fact that Reagan's economic regimen included freezing the minimum wage at $3.35 an hour, slashing federal assistance to local governments by 60 percent, cutting the budget for public housing and Section 8 rent subsidies in half, and eliminating the antipoverty Community Development Block Grant program. The widening gap between the rich and poor had already begun during the 1970s before Reagan's economic policies took effect. Along with Reagan's 1981 cut in the top regular tax rate on unearned income, he reduced the maximum capital gains rate to 20 percent. Reagan later set tax rates on capital gains at the same level as the rates on ordinary income like salaries and wages, with both topping out at 28 percent. Reagan is viewed as an antitax hero despite raising taxes eleven times throughout his presidency, all in the name of fiscal responsibility. According to Paul Krugman, "Over all, the 1982 tax increase undid about a third of the 1981 cut; as a share of GDP, the increase was substantially larger than Mr. Clinton's 1993 tax increase." According to historian and domestic policy adviser Bruce Bartlett, Reagan's tax increases throughout his presidency took back half of the 1981 tax cut.

During Reagan's presidency, a program was initiated within the United States Intelligence Community to ensure America's economic strength. The program, Project Socrates, developed and demonstrated the means required for the United States to generate and lead the next evolutionary leap in technology acquisition and utilization for a competitive advantage—automated innovation. To ensure that the United States acquired the maximum benefit from automated innovation, Reagan, during his second term, had an executive order drafted to create a new federal agency to implement the Project Socrates results on a nationwide basis. However, Reagan's term came to an end before the executive order could be coordinated and signed, and the incoming Bush administration, labeling Project Socrates as "industrial policy," had it terminated.

Their society is economically weak, and it lacks the wealth, education, and technology to enter the information age. They have thrown everything into military production, and their society is starting to show terrible stress as a result. They can't sustain military production the way we can. Eventually it will break them, and then there will be just one superpower in a safe world—if, only if, we can keep spending.

Reagan was deeply committed first to the abolition of nuclear weapons worldwide. Second, he was committed (thanks to his California friend Edward Teller, the father of the hydrogen bomb) to building a defense against nuclear weapons, called the Strategic Defense Initiative (SDI, nicknamed "Star Wars"). American scientists were not sure that SDI would work, but they were sure its total cost would reach in the trillions of dollars. Reagan encouraged Congress to think of it as billions of new dollars spent in individual districts. If SDI worked, thousands of Soviet nuclear-armed missiles would be worthless — if launched, they could all be shot down. Gorbachev made it his highest priority to get Reagan to abandon SDI.

Reagan's ability to talk about substantive issues with understandable terms and to focus on mainstream American concerns earned him the laudatory moniker "The Great Communicator." Of it, Reagan said, "I won the nickname the great communicator. But I never thought it was my style that made a difference—it was the content. I wasn't a great communicator, but I communicated great things." His age and soft-spoken speech gave him a warm grandfatherly image.

Soon after taking office as president, Reagan began implementing sweeping new political and economic initiatives. His supply-side economic policies, dubbed "Reaganomics", advocated tax rate reduction to spur economic growth, economic deregulation, and reduction in government spending. In his first term, he survived an assassination attempt, spurred the War on Drugs, invaded Grenada, and fought public sector labor unions. Over his two terms, the economy saw a reduction of inflation from 12.5% to 4.4% and an average real GDP annual growth of 3.4%. Reagan enacted cuts in domestic discretionary spending, cut taxes, and increased military spending, which contributed to increased federal debt overall. Foreign affairs dominated his second term, including the bombing of Libya, the Iran–Iraq War, the Iran–Contra affair, and the ongoing Cold War. In June 1987, four years after he publicly described the Soviet Union as an "evil empire", Reagan challenged Soviet General Secretary Mikhail Gorbachev to "tear down this wall!", during a speech at the Brandenburg Gate. He transitioned Cold War policy from détente to rollback by escalating an arms race with the USSR while engaging in talks with Gorbachev. The talks culminated in the INF Treaty, which shrank both countries' nuclear arsenals. Reagan began his presidency during the decline of the Soviet Union, which ultimately collapsed nearly three years after he left office.

Reagan launched his campaign with an indictment of a Federal Government which he believed had "overspent, overstimulated, and overregulated." After receiving the Republican nomination, Reagan selected one of his opponents in the primaries, George H. W. Bush, to be his running mate. His relaxed and confident appearance during the televised Reagan–Carter debate on October 28, boosted his popularity and helped to widen his lead in the polls.

In 2011, the Institute for the Study of the Americas released the first-ever British academic survey to rate U.S. presidents. This poll of British specialists in U.S. history and politics placed Reagan as the eighth greatest U.S. president.

On Independence Day 2011 a statue to Reagan was unveiled outside the U.S. embassy in London. The unveiling was supposed to be attended by Reagan's wife Nancy, but she did not attend; former Secretary of State Condoleezza Rice took her place and read a statement on her behalf. President Reagan's friend and British prime minister during his presidency, Margaret Thatcher, was also unable to attend due to frail health.

After the campaign, Reagan remained in the public debate with the Ronald Reagan Radio Commentary series and his political action committee, Citizens for the Republic, which was later revived in Alexandria, Virginia, in 2009 by the Reagan biographer Craig Shirley.

On June 3, 2009, Nancy Reagan unveiled a statue of her late husband in the United States Capitol rotunda. The statue represents the state of California in the National Statuary Hall Collection. After Reagan's death, both major American political parties agreed to erect a statue of Reagan in the place of that of Thomas Starr King. The day before, President Obama signed the Ronald Reagan Centennial Commission Act into law, establishing a commission to plan activities to mark the upcoming centenary of Reagan's birth.

c.  1960 . Hosting General Electric Theater

The period of American history most dominated by Reagan and his policies that concerned taxes, welfare, defense, the federal judiciary and the Cold War is known today as the Reagan Era. This time period emphasized that the conservative "Reagan Revolution," led by Reagan, had a permanent impact on the United States in domestic and foreign policy. The Bill Clinton administration is often treated as an extension of the Reagan Era, as is the George W. Bush administration. Historian Eric Foner noted that the Obama candidacy in 2008 "aroused a great deal of wishful thinking among those yearning for a change after nearly thirty years of Reaganism."

During his presidency, Reagan pursued policies that reflected his personal belief in individual freedom; brought changes domestically, both to the U.S. economy and expanded military; and contributed to the end of the Cold War. Termed the "Reagan Revolution," his presidency would reinvigorate American morale, reinvigorate the U.S. economy and reduce reliance upon government. As president, Reagan kept a diary in which he commented on daily occurrences of his presidency and his views on the issues of the day. The diaries were published in May 2007 in the bestselling book, The Reagan Diaries.

In 2007, Polish President Lech Kaczyński posthumously conferred on Reagan the highest Polish distinction, the Order of the White Eagle, saying that Reagan had inspired the Polish people to work for change and helped to unseat the repressive communist regime; Kaczyński said it "would not have been possible if it was not for the tough-mindedness, determination, and feeling of mission of President Ronald Reagan." Reagan backed the nation of Poland throughout his presidency, supporting the anti-communist Solidarity movement, along with Pope John Paul II; the Ronald Reagan Park, a public facility in Gdańsk, was named in his honor.

In 2006, Reagan was inducted into the California Hall of Fame, located at The California Museum. Every year from 2002, California governors Gray Davis and Arnold Schwarzenegger proclaimed February 6 "Ronald Reagan Day" in the state of California in honor of their most famous predecessor. In 2010, Schwarzenegger signed Senate Bill 944, authored by Senator George Runner, to make every February 6 Ronald Reagan Day in California.

After Reagan's death, the United States Postal Service issued a President Ronald Reagan commemorative postage stamp in 2005. Later in the year, CNN, along with the editors of Time magazine, named him the "most fascinating person" of the network's first 25 years; Time listed Reagan one of the 100 Most Important People of the 20th century as well. The Discovery Channel asked its viewers to vote for The Greatest American in June 2005; Reagan placed in first place, ahead of Abraham Lincoln and Martin Luther King Jr.

When Reagan left office in 1989, he held an approval rating of 68%, matching those of Franklin D. Roosevelt, and later Bill Clinton, as the highest ratings for departing presidents in the modern era. He was the first president since Dwight D. Eisenhower to serve two full terms after the five prior presidents did not. Although he had planned an active post-presidency, Reagan disclosed in November 1994 that he had been diagnosed with Alzheimer's disease earlier that year. Afterward, his informal public appearances became more infrequent as the disease progressed. He died at home on June 5, 2004. His tenure constituted a realignment toward conservative policies in the United States, and he is an icon among conservatives. Evaluations of his presidency among historians and the general public place him among the upper tier of American presidents.

Reagan died of pneumonia, complicated by Alzheimer's disease, at his home in the Bel Air district of Los Angeles, California, on the afternoon of June 5, 2004. A short time after his death, Nancy Reagan released a statement saying, "My family and I would like the world to know that President Ronald Reagan has died after 10 years of Alzheimer's disease at 93 years of age. We appreciate everyone's prayers." Speaking in Paris, France, President George W. Bush called Reagan's death "a sad hour in the life of America". He also declared June 11 a national day of mourning.

Congress authorized the creation of the Ronald Reagan Boyhood Home in Dixon, Illinois in 2002, pending federal purchase of the property. On May 16 of that year, Nancy Reagan accepted the Congressional Gold Medal, the highest civilian honor bestowed by Congress, on behalf of the president and herself.

Reagan deployed the CIA's Special Activities Division to Afghanistan and Pakistan. They were instrumental in training, equipping and leading Mujahideen forces against the Soviet Army. President Reagan's Covert Action program has been given credit for assisting in ending the Soviet occupation of Afghanistan, though some of the United States funded armaments introduced then would later pose a threat to U.S. troops in the 2001 War in Afghanistan. The CIA also began sharing information with the Iranian government which it was secretly courting. In one instance, in 1982, this practice enabled the government to identify and purge communists from its ministries and to virtually eliminate the pro-Soviet infrastructure in Iran.

Reagan suffered a fall at his Bel Air home on January 13, 2001, resulting in a broken hip. The fracture was repaired the following day, and the 89-year-old Reagan returned home later that week, although he faced difficult physical therapy at home. On February 6, 2001, Reagan reached the age of 90, only the third U.S. president (after John Adams and Herbert Hoover) to do so. Reagan's public appearances became much less frequent with the progression of the disease, and as a result, his family decided that he would live in quiet semi-isolation with his wife Nancy. She told CNN's Larry King in 2001 that very few visitors were allowed to see her husband because she felt that "Ronnie would want people to remember him as he was." After her husband's diagnosis and death, Nancy Reagan became a stem-cell research advocate, asserting that it could lead to a cure for Alzheimer's.

As the years went on, the disease slowly destroyed Reagan's mental capacity. He was able to recognize only a few people, including his wife, Nancy. He remained active, however; he took walks through parks near his home and on beaches, played golf regularly, and until 1999 he often went to his office in nearby Century City.

On Reagan's 87th birthday in 1998, Washington National Airport was renamed Ronald Reagan Washington National Airport by a bill signed into law by President Bill Clinton. That year, the Ronald Reagan Building and International Trade Center was dedicated in Washington, D.C. He was among 18 included in Gallup's most admired man and woman poll of the 20th century, from a poll conducted in the U.S. in 1999; two years later, USS Ronald Reagan was christened by Nancy Reagan and the United States Navy. It is one of few Navy ships christened in honor of a living person and the first aircraft carrier to be named in honor of a living former president.

In 1998 the U.S. Navy Memorial Foundation awarded Reagan its Naval Heritage award for his support of the U.S. Navy and military in both his film career and while he served as president.

In August 1994, at the age of 83, Reagan was diagnosed with Alzheimer's disease, an incurable neurological disorder which destroys brain cells and ultimately causes death. In November of that year, he informed the nation of the diagnosis through a handwritten letter, writing in part:

Dr. Lawrence Altman of The New York Times noted that "the line between mere forgetfulness and the beginning of Alzheimer's can be fuzzy", and all four of Reagan's White House doctors said that they saw no evidence of Alzheimer's while he was president. Daniel Ruge, a neurosurgeon who served as Physician to the President from 1981 to 1985, said that he never detected signs of the disease while speaking almost every day with Reagan. John E. Hutton, who served from 1985 to 1989, said the president "absolutely" did not "show any signs of dementia or Alzheimer's". Other staff members, former aides, and friends said they saw no indication of Alzheimer's while he was president. Reagan did experience occasional memory lapses, though, especially with names. Reagan's doctors said that he began exhibiting overt symptoms of the illness in late 1992 or 1993, several years after he had left office. For example, Reagan repeated a toast to Margaret Thatcher, with identical words and gestures, at his 82nd-birthday party on February 6, 1993.

After the funeral, the Reagan entourage was flown back to the Ronald W. Reagan Presidential Library in Simi Valley, California, where another service was held, and President Reagan was interred. At the time of his death, Reagan was the longest-lived president in U.S. history, having lived 93 years and 120 days (2 years, 8 months, and 23 days longer than John Adams, whose record he surpassed). He was also the first U.S. president to die in the 21st century. Reagan's burial site is inscribed with the words he delivered at the opening of the Ronald Reagan Presidential Library: "I know in my heart that man is good, that what is right will always eventually triumph and that there is purpose and worth to each and every life."

On January 18, 1993, Reagan received the Presidential Medal of Freedom (awarded with distinction), the highest honor that the United States can bestow, from President George H. W. Bush, his vice president and successor. Reagan was also awarded the Republican Senatorial Medal of Freedom, the highest honor bestowed by Republican members of the Senate.

On April 13, 1992, Reagan was assaulted by an anti-nuclear protester during a luncheon speech while accepting an award from the National Association of Broadcasters in Las Vegas. The protester, Richard Springer, smashed a 2-foot-high (60 cm) 30-pound (13.5 kg) crystal statue of an eagle that the broadcasters had given the former president. Flying shards of glass hit Reagan, but he was not injured. Using media credentials, Springer intended to announce government plans for an underground nuclear weapons test in the Nevada desert the following day. Springer was the founder of an anti-nuclear group called the 100th Monkey. Following his arrest on assault charges, a Secret Service spokesman could not explain how Springer got past the federal agents who guarded Reagan's life at all times. Later, Springer pled guilty to reduced charges and said he had not meant to hurt Reagan through his actions. He pled guilty to a misdemeanor federal charge of interfering with the Secret Service, but other felony charges of assault and resisting officers were dropped.

After leaving office in 1989, the Reagans purchased a home in Bel Air, Los Angeles, in addition to the Reagan Ranch in Santa Barbara. They regularly attended Bel Air Church and occasionally made appearances on behalf of the Republican Party; Reagan delivered a well-received speech at the 1992 Republican National Convention. Previously, on November 4, 1991, the Ronald Reagan Presidential Library was dedicated and opened to the public. Five presidents and six first ladies attended the dedication ceremonies, marking the first time that five presidents were gathered in the same location. Reagan continued to speak publicly in favor of a line-item veto; the Brady Bill; a constitutional amendment requiring a balanced budget; and the repeal of the 22nd Amendment, which prohibits anyone from serving more than two terms as president. In 1992 Reagan established the Ronald Reagan Freedom Award with the newly formed Ronald Reagan Presidential Foundation. His final public speech occurred on February 3, 1994, during a tribute to him in Washington, D.C.; his last major public appearance was at the funeral of Richard Nixon on April 27, 1994.

Reagan's major achievement was the end of the Cold War as he left office. Furthermore, the USSR and Soviet-sponsored Communist movements worldwide were falling apart—and collapsed completely three years after he left office. The U.S. thus became the only superpower. His admirers say he won the Cold War. After 40 years of high tension, the USSR pulled back in the last years of Reagan's second term. In 1989, the Kremlin lost control of all its East European satellites. In 1991, Communism was overthrown in the USSR, and on December 26, 1991, the Soviet Union ceased to exist. The resulting states were no threat to the United States. Reagan's exact role is debated, with many believing that Reagan's defense policies, economic policies, military policies and hard-line rhetoric against the Soviet Union and Communism—together with his summits with General Secretary Gorbachev—played a significant part in ending the Cold War.

By the time President Reagan gave his first prepared speech on the epidemic, six years into his presidency, 36,058 Americans had been diagnosed with AIDS, and 20,849 had died of it. By 1989, the year Reagan left office, more than 100,000 people had been diagnosed with AIDS in the United States, and more than 59,000 of them had died of it.

On January 7, 1989, Reagan underwent surgery at Walter Reed Army Medical Center to repair a Dupuytren's contracture of the ring finger of his left hand. The surgery lasted for more than three hours and was performed under regional anesthesia. This procedure was done just 13 days before he left office. For this reason, he had a hand and finger bandage the day of his farewell speech and during President Bush's inauguration.

Reagan suffered an episode of head trauma in July 1989, five years before his diagnosis. After being thrown from a horse in Mexico, a subdural hematoma was found and surgically treated later in the year. Nancy Reagan, citing what doctors told her, asserted that her husband's 1989 fall hastened the onset of Alzheimer's disease, although acute brain injury has not been conclusively proven to accelerate Alzheimer's or dementia. Ruge said it is possible that the horse accident affected Reagan's memory.

Since Reagan left office in 1989, substantial debate has occurred among scholars, historians, and the general public surrounding his legacy. Supporters have pointed to a more efficient and prosperous economy as a result of Reagan's economic policies, foreign policy triumphs including a peaceful end to the Cold War, and a restoration of American pride and morale. Proponents say that he had an unabated and passionate love for the United States which restored faith in the American Dream, after a decline in American confidence and self-respect under Jimmy Carter's perceived weak leadership, particularly during the Iran hostage crisis, as well as his gloomy, dreary outlook for the future of the United States during the 1980 election. Critics point out that Reagan's economic policies resulted in rising budget deficits, a wider gap in wealth, and an increase in homelessness and that the Iran–Contra affair lowered American credibility.

Reagan reshaped the Republican party, led the modern conservative movement, and altered the political dynamic of the United States. More men voted Republican under Reagan, and Reagan tapped into religious voters. The so-called "Reagan Democrats" were a result of his presidency. When Reagan left office in 1989, a CBS poll indicated that he held an approval rating of 68 percent. This figure equaled the approval rating of Franklin D. Roosevelt (and was later matched by Bill Clinton), as the highest rating for a departing president in the modern era.

Reagan's popularity has increased since 1989. Gallup polls in 2001 and 2007 ranked him number one or number two when correspondents were asked for the greatest president in history. Reagan ranked third of post–World War II presidents in a 2007 Rasmussen Reports poll, fifth in an ABC 2000 poll, ninth in another 2007 Rasmussen poll, and eighth in a late 2008 poll by British newspaper The Times. In a Siena College survey of over 200 historians, however, Reagan ranked sixteenth out of 42. While the debate about Reagan's legacy is ongoing, the 2009 Annual C-SPAN Survey of Presidential Leaders ranked Reagan the 10th greatest president. The survey of leading historians rated Reagan number 11 in 2000.

In 1988, near the end of the Iran–Iraq War, the U.S. Navy guided-missile cruiser USS Vincennes accidentally shot down Iran Air Flight 655 killing 290 civilian passengers. The incident further worsened already tense Iran–United States relations.

When Reagan visited Moscow for the fourth summit in 1988, he was viewed as a celebrity by the Soviets. A journalist asked the president if he still considered the Soviet Union the evil empire. "No," he replied, "I was talking about another time, another era." At Gorbachev's request, Reagan gave a speech on free markets at the Moscow State University.

After leaving office, Reagan became an iconic influence within the Republican Party. His policies and beliefs have been frequently invoked by Republican presidential candidates since 1988. The 2008 Republican presidential candidates were no exception, for they aimed to liken themselves to him during the primary debates, even imitating his campaign strategies. Republican nominee John McCain frequently said that he came to office as "a foot soldier in the Reagan Revolution." Reagan's most famous statement regarding the role of smaller government was that "Government is not a solution to our problem, government is the problem." Praise for Reagan's accomplishments was part of standard GOP rhetoric a quarter-century after his retirement. Washington Post reporter Carlos Lozada noted how the main Republican contenders in the 2016 presidential race adopted "standard GOP Gipper worship".

The administration's stance toward the savings and loan industry contributed to the savings and loan crisis. A minority of the critics of Reaganomics also suggested that the policies partially influenced the stock market crash of 1987, but there is no consensus regarding a single source for the crash. To cover newly spawned federal budget deficits, the United States borrowed heavily both domestically and abroad, raising the national debt from $997 billion to $2.85 trillion. Reagan described the new debt as the "greatest disappointment" of his presidency.

He reappointed Paul Volcker as Chairman of the Federal Reserve, and in 1987 he appointed monetarist Alan Greenspan to succeed him. Reagan ended the price controls on domestic oil that had contributed to the energy crises of 1973–74 and the summer of 1979. The price of oil subsequently dropped, and there were no fuel shortages like those in the 1970s. Reagan also fulfilled a 1980 campaign promise to repeal the windfall profits tax in 1988, which had previously increased dependence on foreign oil. Some economists, such as Nobel Prize winners Milton Friedman and Robert Mundell, argue that Reagan's tax policies invigorated America's economy and contributed to the economic boom of the 1990s. Other economists, such as Nobel Prize winner Robert Solow, argue that Reagan's deficits were a major reason his successor, George H. W. Bush, reneged on his campaign promise and resorted to raising taxes.

Speaking at the Berlin Wall on June 12, 1987, Reagan challenged Gorbachev to go further, saying "General Secretary Gorbachev, if you seek peace, if you seek prosperity for the Soviet Union and Eastern Europe, if you seek liberalization, come here to this gate! Mr. Gorbachev, open this gate! Mr. Gorbachev, tear down this wall!" Later, in November 1989, East German authorities began allowing citizens to pass freely through border checkpoints, and began dismantling the Wall the following June; its demolition was completed in 1992.

At Gorbachev's visit to Washington in December 1987, he and Reagan signed the Intermediate-Range Nuclear Forces Treaty (INF Treaty) at the White House, which eliminated an entire class of nuclear weapons. The two leaders laid the framework for the Strategic Arms Reduction Treaty, or START I; Reagan insisted that the name of the treaty be changed from Strategic Arms Limitation Talks to Strategic Arms Reduction Talks.

In January 1987, Reagan underwent surgery for an enlarged prostate that caused further worries about his health. No cancerous growths were found, and he was not sedated during the operation. In July of that year, aged 76, he underwent a third skin cancer operation on his nose.

In 1986, Reagan signed a drug enforcement bill that budgeted $1.7 billion (equivalent to $4 billion in 2019) to fund the war on drugs and specified a mandatory minimum penalty for drug offenses. The bill was criticized for promoting significant racial disparities in the prison population, and critics also charged that the policies did little to reduce the availability of drugs on the street while resulting in a tremendous financial burden for America. Defenders of the effort point to success in reducing rates of adolescent drug use: marijuana use among high-school seniors declined from 33 percent in 1980 to 12 percent in 1991. First Lady Nancy Reagan made the war on drugs her main priority by founding the "Just Say No" drug awareness campaign, which aimed to discourage children and teenagers from engaging in recreational drug use by offering various ways of saying "no." Nancy Reagan traveled to 65 cities in 33 states, raising awareness about the dangers of drugs, including alcohol.

Relations between Libya and the United States under President Reagan were continually contentious, beginning with the Gulf of Sidra incident in 1981; by 1982, Libyan leader Muammar Gaddafi was considered by the CIA to be, along with USSR leader Leonid Brezhnev and Cuban leader Fidel Castro, part of a group known as the "unholy trinity" and was also labeled as "our international public enemy number one" by a CIA official. These tensions were later revived in early April 1986, when a bomb exploded in a Berlin discothèque, resulting in the injury of 63 American military personnel and death of one serviceman. Stating that there was "irrefutable proof" that Libya had directed the "terrorist bombing," Reagan authorized the use of force against the country. In the late evening of April 15, 1986, the United States launched a series of airstrikes on ground targets in Libya.

British prime minister, Margaret Thatcher, allowed the U.S. Air Force to use Britain's air bases to launch the attack, on the justification that the UK was supporting America's right to self-defense under Article 51 of the United Nations Charter. The attack was designed to halt Gaddafi's "ability to export terrorism," offering him "incentives and reasons to alter his criminal behavior." The president addressed the nation from the Oval Office after the attacks had commenced, stating, "When our citizens are attacked or abused anywhere in the world on the direct orders of hostile regimes, we will respond so long as I'm in this office." The attack was condemned by many countries. By a vote of 79 in favor to 28 against with 33 abstentions, the United Nations General Assembly adopted resolution 41/38 which "condemns the military attack perpetrated against the Socialist People's Libyan Arab Jamahiriya on April 15, 1986, which constitutes a violation of the Charter of the United Nations and of international law."

In 1986, the Iran–Contra affair became a problem for the administration stemming from the use of proceeds from covert arms sales to Iran during the Iran–Iraq War to fund the Contra rebels fighting against the government in Nicaragua, which had been specifically outlawed by an act of Congress. The affair became a political scandal in the United States during the 1980s. The International Court of Justice, whose jurisdiction to decide the case was disputed by the United States, ruled that the United States had violated international law and breached treaties in Nicaragua in various ways.

He also had the ability to offer comfort and hope to the nation as a whole at times of tragedy. Following the disintegration of the Space Shuttle Challenger on January 28, 1986. On the evening of the disaster, Reagan addressed the nation saying,

Reagan was sworn in as president for the second time on January 20, 1985, in a private ceremony at the White House. To date, at 73 years of age, he is the oldest person to take the presidential oath of office. Because January 20 fell on a Sunday, a public celebration was not held but took place in the Capitol rotunda the following day. January 21 was one of the coldest days on record in Washington, D.C.; due to poor weather, inaugural celebrations were held inside the Capitol. In the weeks that followed, he shook up his staff somewhat, moving White House Chief of Staff James Baker to Secretary of the Treasury and naming Treasury Secretary Donald Regan, a former Merrill Lynch officer, Chief of Staff.

As an alternative strategy for opposing apartheid, the Reagan Administration developed a policy of constructive engagement with the South African government as a means of encouraging it to move away from apartheid gradually. It was part of a larger initiative designed to foster peaceful economic development and political change throughout southern Africa. This policy, however, engendered much public criticism and renewed calls for the imposition of stringent sanctions. In response, Reagan announced the imposition of new sanctions on the South African government, including an arms embargo in late 1985. These sanctions were, however, seen as weak by anti-apartheid activists, and as insufficient by the president's opponents in Congress. In August 1986, Congress approved the Comprehensive Anti-Apartheid Act, which included tougher sanctions. Reagan vetoed the act, but the veto was overridden by Congress. Afterward, Reagan reiterated that his administration and "all America" opposed apartheid, and said, "the debate  ... was not whether or not to oppose apartheid but, instead, how best to oppose it and how best to bring freedom to that troubled country." Several European countries as well as Japan soon followed the U.S. lead and imposed their sanctions on South Africa.

Reagan appreciated the revolutionary change in the direction of the Soviet policy with Mikhail Gorbachev, and shifted to diplomacy, intending to encourage the Soviet leader to pursue substantial arms agreements. He and Gorbachev held four summit conferences between 1985 and 1988: the first in Geneva, Switzerland, the second in Reykjavík, Iceland, the third in Washington, D.C., and the fourth in Moscow. Reagan believed that if he could persuade the Soviets to allow for more democracy and free speech, this would lead to reform and the end of Communism. The critical summit was at Reykjavík in October 1986, where they met alone, with translators but with no aides. To the astonishment of the world, and the chagrin of Reagan's most conservative supporters, they agreed to abolish all nuclear weapons. Gorbachev then asked the end of SDI. Reagan said no, claiming that it was defensive only, and that he would share the secrets with the Soviets. No deal was achieved.

Reagan came under much criticism in 1985 when he was accused of honoring Nazi war criminals at a cemetery in West Germany. In February 1985, the administration accepted an invitation for Reagan to visit a German military cemetery in Bitburg and to place a wreath alongside West German Chancellor Helmut Kohl. Deaver was given assurances by a German head of protocol that no war criminals were buried there. It was later determined that the cemetery held the graves of 49 members of the Waffen-SS. What neither Deaver nor other administration officials initially realized was that many Germans distinguished the regular SS, who typically were composed of Nazi true believers, and the Waffen-SS which were attached to military units and composed of conscripted soldiers.

As the controversy brewed in April 1985, Reagan issued a statement that called the Nazi soldiers buried in that cemetery as themselves "victims," a designation which ignited a stir over whether Reagan had equated the SS men to victims of the Holocaust. Pat Buchanan, Reagan's Director of Communications, argued that the president did not equate the SS members with the actual Holocaust, but as victims of the ideology of Nazism. Now strongly urged to cancel the visit, the president responded that it would be wrong to back down on a promise he had made to Chancellor Kohl. On May 5, 1985, President Reagan and Chancellor Kohl first visited the site of the former Nazi Bergen-Belsen concentration camp and then the Bitburg cemetery where, along with two military generals, they did place a wreath.

On July 13, 1985, Reagan underwent surgery at Bethesda Naval Hospital to remove cancerous polyps from his colon. He relinquished presidential power to the vice president for eight hours in a similar procedure as outlined in the 25th Amendment, which he specifically avoided invoking. The surgery lasted just under three hours and was successful. Reagan resumed the powers of the presidency later that day. In August of that year, he underwent an operation to remove skin cancer cells from his nose. In October, more skin cancer cells were detected on his nose and removed.

In 1984, journalist Nicholas Lemann interviewed Secretary of Defense Caspar Weinberger and summarized the strategy of the Reagan administration to roll back the Soviet Union:

Lemann noted that when he wrote that in 1984, he thought the Reaganites were living in a fantasy world. But by 2016, Lemann stated that the passage represents "a fairly uncontroversial description of what Reagan actually did."

Reagan accepted the Republican nomination in the Republican convention in Dallas, Texas. He proclaimed that it was "morning again in America," regarding the recovering economy and the dominating performance by the American athletes at the 1984 Summer Olympics on home soil, among other things. He became the first U.S. president to open an Olympic Games. Previous Olympics taking place in the United States had been opened by either the vice president (three times) or another person in charge (twice).

Reagan's opponent in the 1984 presidential election was former vice president Walter Mondale. Following a weak performance in the first presidential debate, Reagan's ability to perform the duties of president for another term was questioned. His confused and forgetful behavior was evident to his supporters; they had previously known him to be clever and witty. Rumors began to circulate that Reagan had Alzheimer's disease. Reagan rebounded in the second debate; confronting questions about his age, he quipped: "I will not make age an issue of this campaign. I am not going to exploit, for political purposes, my opponent's youth and inexperience". This remark generated applause and laughter, even from Mondale himself.

Reagan was known to joke frequently during his lifetime, displayed humor throughout his presidency, and was famous for his storytelling. His numerous jokes and one-liners have been labeled "classic quips" and "legendary." Among the most notable of his jokes was one regarding the Cold War. As a microphone test in preparation for his weekly radio address in August 1984, Reagan made the following joke: "My fellow Americans, I'm pleased to tell you today that I've signed legislation that will outlaw Russia forever. We begin bombing in five minutes." Former aide David Gergen commented, "It was that humor  ... that I think endeared people to Reagan."

After Soviet fighters downed Korean Air Lines Flight 007 near Moneron Island on September 1, 1983, carrying 269 people, including Georgia congressman Larry McDonald, Reagan labeled the act a "massacre" and declared that the Soviets had turned "against the world and the moral precepts which guide human relations among people everywhere." The Reagan administration responded to the incident by suspending all Soviet passenger air service to the United States and dropped several agreements being negotiated with the Soviets, wounding them financially. As a result of the shootdown, and the cause of KAL 007's going astray thought to be inadequacies related to its navigational system, Reagan announced on September 16, 1983, that the Global Positioning System would be made available for civilian use, free of charge, once completed in order to avert similar navigational errors in future.

In March 1983, Reagan introduced the Strategic Defense Initiative, a defense project that would have used ground- and space-based systems to protect the United States from attack by strategic nuclear ballistic missiles. Reagan believed that this defense shield could make nuclear war impossible. There was much disbelief surrounding the program's scientific feasibility, leading opponents to dub SDI "Star Wars" and argue that its technological objective was unattainable. The Soviets became concerned about the possible effects SDI would have; leader Yuri Andropov said it would put "the entire world in jeopardy." For those reasons, David Gergen, a former aide to President Reagan, believes that in retrospect, SDI hastened the end of the Cold War.

With the approval of Congress, Reagan sent forces to Lebanon in 1983 to reduce the threat of the Lebanese Civil War. The American peacekeeping forces in Beirut, a part of a multinational force during the Lebanese Civil War, were attacked on October 23, 1983. The Beirut barracks bombing killed 241 American servicemen and wounded more than 60 others by a suicide truck bomber. Reagan sent in the USS New Jersey battleship to shell Syrian positions in Lebanon. He then withdrew all the Marines from Lebanon.

On October 25, 1983, Reagan ordered U.S. forces to invade Grenada (codenamed "Operation Urgent Fury") where a 1979 coup d'état had established an independent non-aligned Marxist–Leninist government. A formal appeal from the Organisation of Eastern Caribbean States (OECS) led to the intervention of U.S. forces; President Reagan also cited an allegedly regional threat posed by a Soviet-Cuban military build-up in the Caribbean and concern for the safety of several hundred American medical students at St. George's University as adequate reasons to invade. Operation Urgent Fury was the first major military operation conducted by U.S. forces since the Vietnam War, several days of fighting commenced, resulting in a U.S. victory, with 19 American fatalities and 116 wounded American soldiers. In mid-December, after a new government was appointed by the governor-general, U.S. forces withdrew.

Meanwhile, Reagan escalated the rhetoric. In his famous 1983 speech to religious fundamentalists, he outlined his strategy for victory. First, he labeled the Soviet system an "Evil Empire" and a failure—its demise would be a godsend for the world. Second, Reagan explained his strategy was an arms buildup that would leave the Soviets far behind, with no choice but to negotiate arms reduction. Finally, displaying his characteristic optimism, he praised liberal democracy and promised that such a system eventually would triumph over Soviet communism.

Early in his presidency, Reagan started wearing a custom-made, technologically advanced hearing aid, first in his right ear and later in his left ear as well. His decision to go public in 1983 regarding his wearing the small, audio-amplifying device boosted their sales.

In 1982, the Job Training Partnership Act of 1982 was signed into law, initiating one of the United States' first public–private partnerships and a substantial part of the president's job creation program. Reagan's Assistant Secretary of Labor and Chief of Staff, Al Angrisani, was a primary architect of the bill.

The Reagan administration was often criticized for inadequately enforcing, if not actively undermining, civil rights legislation. In 1982, he signed a bill extending the Voting Rights Act for 25 years after a grass-roots lobbying and legislative campaign forced him to abandon his plan to ease that law's restrictions. He also signed legislation establishing a federal Martin Luther King holiday, though he did so with reservations. In March 1988, he vetoed the Civil Rights Restoration Act of 1987, but his veto was overridden by Congress. Reagan had argued that the legislation infringed on states' rights and the rights of churches and business owners.

Reagan escalated the Cold War, accelerating a reversal from the policy of détente that began during the Carter administration, following the Afghan Saur Revolution and subsequent Soviet invasion. He ordered a massive buildup of the United States Armed Forces and implemented new policies that were directed towards the Soviet Union; he revived the B-1 Lancer program that had been canceled by the Carter administration, and he produced the MX missile. In response to Soviet deployment of the SS-20, Reagan oversaw NATO's deployment of the Pershing missile in West Germany. In 1982 Reagan tried to cut off Moscow's access to hard currency by impeding its proposed gas line to Western Europe. It hurt the Soviet economy, but it also caused ill will among American allies in Europe who counted on that revenue. Reagan retreated on this issue.

Reagan and the United Kingdom's prime minister Margaret Thatcher both denounced the Soviet Union in ideological terms. In a famous address on June 8, 1982, to the Parliament of the United Kingdom in the Royal Gallery of the Palace of Westminster, Reagan said, "the forward march of freedom and democracy will leave Marxism–Leninism on the ash heap of history." On March 3, 1983, he predicted that communism would collapse, stating, "Communism is another sad, bizarre chapter in human history whose last pages even now are being written." In a speech to the National Association of Evangelicals on March 8, 1983, Reagan called the Soviet Union "an evil empire."

Though supported by leading American conservatives who argued that Reagan's foreign policy strategy was essential to protecting U.S. security interests, critics labeled the administration's foreign policy initiatives as aggressive and imperialistic, and chided them as "warmongering." The administration was also heavily criticized for backing anti-communist leaders accused of severe human rights violations, such as Hissène Habré of Chad and Efraín Ríos Montt of Guatemala. During the 16 months (1982–1983) Montt was President of Guatemala, the Guatemalan military was accused of genocide for massacres of members of the Ixil people and other indigenous groups. Reagan had said that Montt was getting a "bum rap," and described him as "a man of great personal integrity." Previous human rights violations had prompted the United States to cut off aid to the Guatemalan government, but the Reagan administration appealed to Congress to restart military aid. Although unsuccessful with that, the administration was successful in providing nonmilitary assistance such as USAID.

In response to concerns about the increasing crack epidemic, Reagan began the war on drugs campaign in 1982, a policy led by the federal government to reduce the illegal drug trade. Though Nixon had previously declared war on drugs, Reagan advocated more aggressive policies. He said that "drugs were menacing our society" and promised to fight for drug-free schools and workplaces, expanded drug treatment, stronger law enforcement and drug interdiction efforts, and greater public awareness.

Reagan administration officials countered criticisms of neglect by noting that federal funding for AIDS-related programs rose over his presidency, from a few hundred thousand dollars in 1982 to $2.3 billion in 1989. In a September 1985 press conference, Reagan said: "this is a top priority with us...there's no question about the seriousness of this and the need to find an answer." Gary Bauer, Reagan's domestic policy adviser near the end of his second term, argued that Reagan's belief in cabinet government led him to assign the job of speaking out against AIDS to his Surgeon General of the United States and the United States Secretary of Health and Human Services.

Reagan signed the Immigration Reform and Control Act in 1986. The act made it illegal to knowingly hire or recruit illegal immigrants, required employers to attest to their employees' immigration status, and granted amnesty to approximately three million illegal immigrants who entered the United States before January 1, 1982, and had lived in the country continuously. Upon signing the act at a ceremony held beside the newly refurbished Statue of Liberty, Reagan said, "The legalization provisions in this act will go far to improve the lives of a class of individuals who now must hide in the shadows, without access to many of the benefits of a free and open society. Very soon, many of these men and women will be able to step into the sunlight and, ultimately, if they choose, they may become Americans." Reagan also said, "The employer sanctions program is the keystone and major element. It will remove the incentive for illegal immigration by eliminating the job opportunities which draw illegal aliens here."

Ronald Reagan was 69 years old when he was sworn into office for his first term on January 20, 1981. In his inaugural address, he addressed the country's economic malaise, arguing: "In this present crisis, government is not the solution to our problems; government is the problem."

During his term in office, Reagan campaigned vigorously to restore organized prayer to the schools, first as a moment of prayer and later as a moment of silence. In 1981, Reagan became the first president to propose a constitutional amendment on school prayer. Reagan's election reflected an opposition to the 1962 Supreme Court case Engel v. Vitale, prohibiting state officials from composing an official state prayer and requiring that it be recited in the public schools. Reagan's 1981 proposed amendment stated: "Nothing in this Constitution shall be construed to prohibit individual or group prayer in public schools or other public institutions. No person shall be required by the United States or by any state to participate in prayer." In 1984, Reagan again raised the issue, asking Congress "why can't [the] freedom to acknowledge God be enjoyed again by children in every schoolroom across this land?" In 1985, Reagan expressed his disappointment that the Supreme Court ruling still banned a moment of silence for public schools, and said that efforts to reinstitute prayer in public schools were "an uphill battle". In 1987 Reagan renewed his call for Congress to support voluntary prayer in schools and end "the expulsion of God from America's classrooms."

On March 30, 1981, Reagan, his press secretary James Brady, Washington police officer Thomas Delahanty, and Secret Service agent Tim McCarthy were struck by gunfire from would-be assassin John Hinckley Jr. outside the Washington Hilton hotel. Although "close to death" upon arrival at George Washington University Hospital, Reagan was stabilized in the emergency room, then underwent emergency exploratory surgery. He recovered and was released from the hospital on April 11, becoming the first serving U.S. president to survive being shot in an assassination attempt. The attempt had a significant influence on Reagan's popularity; polls indicated his approval rating to be around 73 percent. Reagan believed that God had spared his life so that he might go on to fulfill a higher purpose.

In August 1981, PATCO, the union of federal air traffic controllers, went on strike, violating a federal law prohibiting government unions from striking. Declaring the situation an emergency as described in the 1947 Taft–Hartley Act, Reagan stated that if the air traffic controllers "do not report for work within 48 hours, they have forfeited their jobs and will be terminated." They did not return, and on August 5, Reagan fired 11,345 striking air traffic controllers who had ignored his order and used supervisors and military controllers to handle the nation's commercial air traffic until new controllers could be hired and trained. A leading reference work on public administration concluded, "The firing of PATCO employees not only demonstrated a clear resolve by the president to take control of the bureaucracy, but it also sent a clear message to the private sector that unions no longer needed to be feared."

Reagan implemented policies based on supply-side economics, advocating a laissez-faire philosophy and free-market fiscal policy, seeking to stimulate the economy with large, across-the-board tax cuts. He also supported returning the United States to some sort of gold standard and successfully urged Congress to establish the U.S. Gold Commission to study how one could be implemented. Citing the economic theories of Arthur Laffer, Reagan promoted the proposed tax cuts as potentially stimulating the economy enough to expand the tax base, offsetting the revenue loss due to reduced rates of taxation, a theory that entered political discussion as the Laffer curve. Reaganomics was the subject of debate with supporters pointing to improvements in certain key economic indicators as evidence of success, and critics pointing to large increases in federal budget deficits and the national debt. His policy of "peace through strength" resulted in a record peacetime defense buildup including a 40 percent real increase in defense spending between 1981 and 1985.

During Reagan's presidency, federal income tax rates were lowered significantly with the signing of the Economic Recovery Tax Act of 1981, which lowered the top marginal tax bracket from 70 percent to 50 percent over three years (as part of a "5–10–10" plan), and the lowest bracket from 14 percent to 11 percent. Other tax increases passed by Congress and signed by Reagan ensured however that tax revenues over his two terms were 18.2 percent of GDP as compared to 18.1 percent over the 40 years of 1970–2010. The 1981 tax act also required that exemptions and brackets be indexed for inflation starting in 1985.

Conversely, Congress passed and Reagan signed into law tax increases of some nature in every year from 1981 to 1987 to continue funding such government programs as Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), Social Security, and the Deficit Reduction Act of 1984 (DEFRA). TEFRA was the "largest peacetime tax increase in American history." Gross domestic product (GDP) growth recovered strongly after the early 1980s recession ended in 1982, and grew during his eight years in office at an annual rate of 7.9 percent per year, with a high of 12.2 percent growth in 1981. Unemployment peaked at 10.8 percent monthly rate in December 1982—higher than any time since the Great Depression—then dropped during the rest of Reagan's presidency. Sixteen million new jobs were created, while inflation significantly decreased. The Tax Reform Act of 1986, another bipartisan effort championed by Reagan, simplified the tax code by reducing the number of tax brackets to four and slashing several tax breaks. The top rate was dropped to 28 percent, but capital gains taxes were increased on those with the highest incomes from 20 percent to 28 percent. The increase of the lowest tax bracket from 11 percent to 15 percent was more than offset by the expansion of personal exemption, standard deduction, and earned income tax credit. The net result was the removal of six million poor Americans from the income tax roll and a reduction of income tax liability at all income levels.

According to AIDS activist organizations such as ACT UP and scholars such as Don Francis and Peter S. Arno, the Reagan administration largely ignored the AIDS crisis, which began to unfold in the United States in 1981, the same year Reagan took office. They also claim that AIDS research was chronically underfunded during Reagan's administration, and requests for more funding by doctors at the Centers for Disease Control (CDC) were routinely denied.

Along with his four Supreme Court appointments, Reagan appointed 83 judges to the United States courts of appeals, and 290 judges to the United States district courts. Early in his presidency, Reagan appointed Clarence M. Pendleton Jr., of San Diego as the first African American to chair the United States Commission on Civil Rights. Pendleton tried to steer the commission into a conservative direction in line with Reagan's views on social and civil rights policy during his tenure from 1981 until his sudden death in 1988. Pendleton soon aroused the ire of many civil rights advocates and feminists when he ridiculed the comparable worth proposal as being "Looney Tunes."

After his diagnosis, letters of support from well-wishers poured into his California home. But there was also speculation over how long Reagan had demonstrated symptoms of mental degeneration. At a June 1981 reception for mayors, not long after the assassination attempt, Reagan greeted his Secretary of Housing and Urban Development Samuel Pierce by saying "How are you, Mr. Mayor? How are things in your city?", although he later realized his mistake. In a 2011 book, Reagan's son Ron said he had suspected early signs of his father's dementia as early as 1984. Former CBS White House correspondent Lesley Stahl recounted that in her final meeting with the president in 1986, Reagan did not seem to know who Stahl was. Stahl came close to reporting that Reagan was senile, but at the end of the meeting, he had regained his alertness.

In 1981, Reagan was inducted as a Laureate of The Lincoln Academy of Illinois and awarded the Order of Lincoln (the state's highest honor) by the governor of Illinois in the area of government. In 1982 he was given the "Distinguished Service Medal" by the American Legion because his highest priority was the national defense. In 1983, he received the highest distinction of the Scout Association of Japan, the Golden Pheasant Award. In 1989, Reagan was made an honorary knight Grand Cross of the Order of the Bath, one of the highest British orders. This entitled him to the use of the post-nominal letters "GCB" but, as a foreign national, not to be known as "Sir Ronald Reagan". Only two U.S. presidents have received this honor since attaining office: Reagan and George H. W. Bush; Dwight D. Eisenhower received his before becoming president in his capacity as a general after World War II. Reagan was also named an honorary Fellow of Keble College, Oxford. Japan awarded him the Grand Cordon of the Order of the Chrysanthemum in 1989; he was the second U.S. president to receive the order and the first to have it given to him for personal reasons as Eisenhower received it as a commemoration of U.S.–Japanese relations. In 1990, Reagan was awarded the WPPAC's Top Honor Prize because he signed the Intermediate-Range Nuclear Forces Treaty with H.E. Mikhail Gorbachev (then president of Russia), ending the cold war.

In 1980, Reagan won the Republican presidential nomination and defeated the incumbent president, Jimmy Carter. At 69 years, 349 days of age at the time of his first inauguration, Reagan was the oldest person to assume the U.S. presidency, a distinction he held until 2017, when Donald Trump was inaugurated at age 70 years, 220 days. Reagan faced former vice president Walter Mondale when he ran for re-election in 1984 and defeated him, winning the most electoral votes of any U.S. president, 525, or 97.6% of the 538 votes in the Electoral College. It was the second-most lopsided presidential election in modern U.S. history after Franklin D. Roosevelt's 1936 victory over Alfred M. Landon, in which he won 98.5%, or 523, of the (then-total) 531 electoral votes.

The 1980 presidential election featured Reagan against incumbent president Jimmy Carter and was conducted amid a multitude of domestic concerns as well as the ongoing Iran hostage crisis. Reagan's campaign stressed some of his fundamental principles: lower taxes to stimulate the economy, less government interference in people's lives, states' rights, and a strong national defense.

During Jimmy Carter's last year in office (1980), inflation averaged 12.5 percent, compared with 4.4 percent during Reagan's last year in office (1988). During Reagan's administration, the unemployment rate declined from 7.5 percent to 5.4 percent, with the rate reaching highs of 10.8 percent in 1982 and 10.4 percent in 1983, averaging 7.5 percent over the eight years, and real GDP growth averaged 3.4 percent with a high of 8.6 percent in 1983, while nominal GDP growth averaged 7.4 percent, and peaked at 12.2 percent in 1982.

The net effect of all Reagan-era tax bills was a 1 percent decrease in government revenues when compared to Treasury Department revenue estimates from the Administration's first post-enactment January budgets. However, federal income tax receipts increased from 1980 to 1989, rising from $308.7 billion to $549 billion or an average annual rate of 8.2 percent (2.5 percent attributed to higher Social Security receipts), and federal outlays grew at an annual rate of 7.1 percent.

Until the early 1980s, the United States had relied on the qualitative superiority of its weapons to essentially frighten the Soviets, but the gap had been narrowed. Although the Soviet Union did not accelerate military spending after President Reagan's military buildup, their enormous military expenses, in combination with collectivized agriculture and inefficient planned manufacturing, were a heavy burden for the Soviet economy. At the same time, oil prices in 1985 fell to one-third of the previous level; oil was the primary source of Soviet export revenues. These factors contributed to a stagnant Soviet economy during Gorbachev's tenure.

During the 1980 presidential campaign, Reagan pledged that he would appoint the first female Supreme Court Justice if given the opportunity. That opportunity came during his first year in office when Associate Justice Potter Stewart retired; Reagan selected Sandra Day O'Connor, who was confirmed unanimously by the Senate. In his second term, Reagan had three opportunities to fill a Supreme Court vacancy. When Chief Justice Warren E. Burger retired in September 1986, Reagan nominated incumbent Associate Justice William Rehnquist to succeed Burger as Chief Justice (the appointment of an incumbent associate justice as chief justice is subject to a separate confirmation process). Then, following Rehnquist's confirmation, the president named Antonin Scalia to fill the consequent associate justice vacancy. Reagan's final opportunity to fill a vacancy arose in mid-1987 when Associate Justice Lewis F. Powell Jr. announced his intention to retire. Reagan initially chose Conservative jurist Robert Bork to succeed Powell. Bork's nomination was strongly opposed by civil and women's rights groups, and by Senate Democrats. That October, after a contentious Senate debate, the nomination was rejected by a roll call vote of 42–58. Soon afterward, Reagan announced his intention to nominate Douglas Ginsburg to the Court. However, before his name was submitted to the Senate, Ginsburg withdrew himself from consideration. Anthony Kennedy was subsequently nominated and confirmed as Powell's successor.

Public reaction to Reagan was always mixed. He was the oldest president up to that time and was supported by young voters, who began an alliance that shifted many of them to the Republican Party. Reagan did not fare well with minority groups in terms of approval, especially African-Americans. However, his support of Israel throughout his presidency earned him support from many Jews. He emphasized family values in his campaigns and during his presidency, although he was the first president to have been divorced. The combination of Reagan's speaking style, unabashed patriotism, negotiation skills, as well as his savvy use of the media, played an important role in defining the 1980s and his future legacy.

Reagan's 1976 campaign relied on a strategy crafted by campaign manager John Sears of winning a few primaries early to damage the inevitability of Ford's likely nomination. Reagan won North Carolina, Texas, and California, but the strategy failed, as he ended up losing New Hampshire, Florida, and his native Illinois. The Texas campaign lent renewed hope to Reagan when he swept all 96 delegates chosen in the May 1 primary, with four more awaiting at the state convention. Much of the credit for that victory came from the work of three co-chairmen, including Ernest Angelo, the mayor of Midland, and Ray Barnhart of Houston, whom Reagan as president would appoint in 1981 as director of the Federal Highway Administration.

Reagan was involved in several high-profile conflicts with the protest movements of the era, including his public criticism of university administrators for tolerating student demonstrations at the Berkeley campus. On May 15, 1969, during the People's Park protests at the university's campus (the original purpose of which was to discuss the Arab–Israeli conflict), Reagan sent the California Highway Patrol and other officers to quell the protests. This led to an incident that became known as "Bloody Thursday," resulting in the death of student James Rector and the blinding of carpenter Alan Blanchard. In addition, 111 police officers were injured in the conflict, including one who was knifed in the chest. Reagan then called out 2,200 state National Guard troops to occupy the city of Berkeley for two weeks to crack down on the protesters. The Guard remained in Berkeley for 17 days, camping in People's Park, and demonstrations subsided as the university removed cordoned-off fencing and placed all development plans for People's Park on hold. One year after the incident, Reagan responded to questions about campus protest movements saying, "If it takes a bloodbath, let's get it over with. No more appeasement." When the Symbionese Liberation Army kidnapped Patty Hearst in Berkeley and demanded the distribution of food to the poor, Reagan joked to a group of political aides about a botulism outbreak contaminating the food.

In 1969, Reagan signed the Family Law Act, which was an amalgam of two bills that had been written and revised by the California State Legislature over more than two years. It became the first no-fault divorce legislation in the United States. Years later, no-fault divorce became Reagan's greatest regret.

Shortly after assuming office, Reagan tested the 1968 presidential waters as part of a "Stop Nixon" movement, hoping to cut into Nixon's southern support and become a compromise candidate if neither Nixon nor second-place candidate Nelson Rockefeller received enough delegates to win on the first ballot at the Republican convention. However, by the time of the convention, Nixon had 692 delegate votes, 25 more than he needed to secure the nomination, followed by Rockefeller with Reagan in third place.

California Republicans were impressed with Reagan's political views and charisma after his "Time for Choosing" speech, and in late 1965 he announced his campaign for governor in the 1966 election. He defeated former San Francisco mayor George Christopher in the Republican primary. In Reagan's campaign, he emphasized two main themes: "to send the welfare bums back to work," and, in reference to burgeoning anti-war and anti-establishment student protests at the University of California, Berkeley, "to clean up the mess at Berkeley." In 1966, Reagan accomplished what both U.S. senator William Knowland in 1958 and former vice president Richard Nixon in 1962 failed to do: he was elected, defeating Pat Brown, the Democratic two-term governor. Reagan was sworn in on January 2, 1967. In his first term, he froze government hiring and approved tax hikes to balance the budget.

Early in 1967, the national debate on abortion was starting to gain traction. In the early stages of the debate, Democratic California state senator Anthony Beilenson introduced the Therapeutic Abortion Act in an effort to reduce the number of "back-room abortions" performed in California. The state legislature sent the bill to Reagan's desk where, after many days of indecision, he reluctantly signed it on June 14, 1967. About two million abortions would be performed as a result, mostly because of a provision in the bill allowing abortions for the well-being of the mother. Reagan had been in office for only four months when he signed the bill and later stated that had he been more experienced as governor, he would not have signed it. After he recognized what he called the "consequences" of the bill, he announced that he was anti-abortion. He maintained that position later in his political career, writing extensively about abortion.

In 1967, Reagan signed the Mulford Act, which repealed a law allowing the public carrying of loaded firearms (becoming California Penal Code 12031 and 171(c)). The bill, which was named after Republican assemblyman Don Mulford, garnered national attention after the Black Panthers marched bearing arms upon the California State Capitol to protest it.

Despite an unsuccessful attempt to force a recall election on Reagan in 1968, he was re-elected governor in 1970, defeating Jesse M. Unruh. He chose not to seek a third term in the following election cycle. One of Reagan's greatest frustrations in office was the controversy of capital punishment, which he strongly supported. His efforts to enforce the state's laws in this area were thwarted when the Supreme Court of California issued its People v. Anderson decision, which invalidated all death sentences issued in California before 1972, though the decision was later overturned by a constitutional amendment. The only execution during Reagan's governorship was on April 12, 1967, when Aaron Mitchell's sentence was carried out by the state in San Quentin's gas chamber.

Reagan gained national attention in his speeches for conservative presidential contender Barry Goldwater in 1964. Speaking for Goldwater, Reagan stressed his belief in the importance of smaller government. He consolidated themes that he had developed in his talks for GE to deliver his famous speech, "A Time for Choosing":

When the legislation that would become Medicare was introduced in 1961, he created a recording for the American Medical Association (AMA) warning that such legislation would mean the end of freedom in America. Reagan said that if his listeners did not write letters to prevent it, "we will awake to find that we have socialism. And if you don't do this, and if I don't do it, one of these days, you and I are going to spend our sunset years telling our children, and our children's children, what it once was like in America when men were free." Other Democratic initiatives he opposed in the 1960s included the Food Stamp Program, raising the minimum wage, and the establishment of the Peace Corps. He also joined the National Rifle Association (NRA) and would become a lifetime member.

From the late 1960s onward, the American public grew increasingly vocal in its opposition to the apartheid policy of the white-minority government of South Africa, and in its insistence that the U.S. impose economic and diplomatic sanctions on South Africa. The strength of the anti-apartheid opposition surged during Reagan's first term in office as its component disinvestment from South Africa movement, which had been in existence for quite some years, gained critical mass following in the United States, particularly on college campuses and among mainline Protestant denominations. President Reagan was opposed to divestiture because, as he wrote in a letter to Sammy Davis Jr., it "would hurt the very people we are trying to help and would leave us no contact within South Africa to try and bring influence to bear on the government". He also noted the fact that the "American-owned industries there employ more than 80,000 blacks" and that their employment practices were "very different from the normal South African customs".

Reagan landed fewer film roles in the late 1950s and moved into television. He was hired as the host of General Electric Theater, a series of weekly dramas that became very popular. His contract required him to tour General Electric (GE) plants 16 weeks out of the year, which often demanded that he give 14 talks per day. He earned approximately $125,000 (equivalent to $1.1 million in 2019) in this role. The show ran for ten seasons from 1953 to 1962, which increased Reagan's national profile. On January 1, 1959, Reagan was the host and announcer for ABC's coverage of the Tournament of Roses Parade. In his final work as a professional actor, Reagan was a host and performer from 1964 to 1965 on the television series Death Valley Days. Following their marriage in 1952, Ronald and Nancy Reagan, who continued to use the stage name Nancy Davis, acted together in three TV series episodes, including a 1958 installment of General Electric Theater titled "A Turkey for the President".

Reagan was hired by General Electric (GE) in 1954 to host the General Electric Theater, a weekly TV drama series. He also traveled across the country to give motivational speeches to over 200,000 GE employees. His many speeches—which he wrote himself—were non-partisan but carried a conservative, pro-business message; he was influenced by Lemuel Boulware, a senior GE executive. Boulware, known for his tough stance against unions and his innovative strategies to win over workers, championed the core tenets of modern American conservatism: free markets, anticommunism, lower taxes, and limited government. Eager for a larger stage, but not allowed to enter politics by GE, he quit and formally registered as a Republican. He often said, "I didn't leave the Democratic Party. The party left me."

Reagan met actress Nancy Davis (1921–2016) in 1949 after she contacted him in his capacity as president of the Screen Actors Guild. He helped her with issues regarding her name appearing on a Communist blacklist in Hollywood. She had been mistaken for another Nancy Davis. She described their meeting by saying, "I don't know if it was exactly love at first sight, but it was pretty close." They were engaged at Chasen's restaurant in Los Angeles and were married on March 4, 1952, at the Little Brown Church in the Valley (North Hollywood, now Studio City) San Fernando Valley. Actor William Holden served as best man at the ceremony. They had two children: Patti (b. 1952) and Ronald "Ron" (b. 1958).

On November 4, Reagan won a decisive victory over Carter, carrying 44 states and receiving 489 electoral votes to Carter's 49 in six states plus D.C. He also won the popular vote, receiving 50.7 percent to Carter's 41.0 percent, with independent John B. Anderson garnering 6.6 percent. Republicans also won a majority of seats in the Senate for the first time since 1952, though Democrats retained a majority in the House of Representatives.

Reagan began as a Hollywood Democrat, and Franklin D. Roosevelt was "a true hero" to him. He moved to the right-wing in the 1950s, became a Republican in 1962, and emerged as a leading conservative spokesman in the Goldwater campaign of 1964.

In his early political career, he joined numerous political committees with a left-wing orientation, such as the American Veterans Committee. He fought against Republican-sponsored right-to-work legislation and supported Helen Gahagan Douglas in 1950 when she was defeated for the Senate by Richard Nixon. It was his realization that Communists were a powerful backstage influence in those groups that led him to rally his friends against them.

However, Reagan also opposed measures soon to manifest in the Mundt-Nixon Bill in May 1948 by opining:

In October 1947 during HUAC's Hollywood hearings, Reagan (whose name also appears as "Regan" in text of the hearings printed by the US GPO testified as resident of the Screen Actors Guild:) testified:

In 1946, Reagan served on the national board of directors for the Independent Citizens Committee of the Arts, Sciences and Professions (ICCASP) and had been a member of its Hollywood chapter. His attendance at a July 10, 1946, meeting of HICCASP brought him to the attention of the FBI, which interviewed him on April 10, 1947, in connection with its investigation into HICCASP. Four decades later it was revealed that, during the late 1940s, Reagan (under the code name T-10) and his then-wife, Jane Wyman, provided the FBI with the names of actors within the motion picture industry whom they believed to be communist sympathizers. Even so, he was uncomfortable with the way the SAG was being used by the government, asking during one FBI interview, "Do they (ie. the House Un-American Activities Committee) expect us to constitute ourselves as a little FBI of our own and determine just who is a Commie and who isn't?"

At rallies, Reagan frequently spoke with a strong ideological dimension. In December 1945, he was stopped from leading an anti-nuclear rally in Hollywood by pressure from the Warner Bros. studio. He would later make nuclear weapons a key point of his presidency when he specifically stated his opposition to mutual assured destruction. Reagan also built on previous efforts to limit the spread of nuclear weapons. In the 1948 presidential election, Reagan strongly supported Harry S. Truman and appeared on stage with him during a campaign speech in Los Angeles. In the early 1950s, his relationship with actress Nancy Davis grew, and he shifted to the right when he endorsed the presidential candidacies of Dwight D. Eisenhower (1952 and 1956) and Richard Nixon (1960).

In January 1944, Reagan was ordered to temporary duty in New York City to participate in the opening of the Sixth War Loan Drive, which campaigned for the purchase of war bonds. He was reassigned to the First Motion Picture Unit on November 14, 1944, where he remained until the end of World War II. By the end of the war, his units had produced some 400 training films for the Air Force, including cockpit simulations for B-29 crews scheduled to bomb Japan. He was separated from active duty on December 9, 1945, as an Army captain. While he was in the service, Reagan obtained a film reel depicting the liberation of the Auschwitz concentration camp; he held on to it, believing that doubts would someday arise as to whether the Holocaust had occurred.

Reagan played his favorite acting role in 1942's Kings Row, where he plays a double amputee who recites the line "Where's the rest of me?"—later used as the title of his 1965 autobiography. Many film critics considered Kings Row to be his best movie, though the film was condemned by The New York Times critic Bosley Crowther.

On April 18, 1942, Reagan was ordered to active duty for the first time. Due to his poor eyesight, he was classified for limited service only, which excluded him from serving overseas. His first assignment was at the San Francisco Port of Embarkation at Fort Mason, California, as a liaison officer of the Port and Transportation Office. Upon the approval of the Army Air Forces (AAF), he applied for a transfer from the cavalry to the AAF on May 15, 1942, and was assigned to AAF Public Relations and subsequently to the First Motion Picture Unit (officially, the 18th AAF Base Unit) in Culver City, California. On January 14, 1943, he was promoted to first lieutenant and was sent to the Provisional Task Force Show Unit of This Is the Army at Burbank, California. He returned to the First Motion Picture Unit after completing this duty and was promoted to captain on July 22, 1943.

Reagan was first elected to the Board of Directors of the Screen Actors Guild (SAG) in 1941, serving as an alternate member. After World War II, he resumed service and became third vice president in 1946. When the SAG president and six board members resigned in March 1947 due to the union's new bylaws on conflict of interest, Reagan was elected president in a special election. He was subsequently re-elected six times, in 1947, 1948, 1949, 1950, 1951 and 1959. He led the SAG through implementing the 1947 Taft–Hartley Act, various labor-management disputes, and the Hollywood blacklist era. First instituted in 1947 by Studio executives who agreed that they would not employ anyone believed to be or to have been Communists or sympathetic with radical politics, the blacklist grew steadily larger during the early 1950s as the U.S. Congress continued to investigate domestic political subversion.

In 1938, Reagan co-starred in the film Brother Rat with actress Jane Wyman (1917–2007). They announced their engagement at the Chicago Theatre and married on January 26, 1940, at the Wee Kirk o' the Heather church in Glendale, California. Together they had two biological children, Maureen (1941–2001) and Christine (b. in 1947 but lived only one day), and adopted a third, Michael (b. 1945). After the couple had arguments about Reagan's political ambitions, Wyman filed for divorce in 1948, citing a distraction due to her husband's Screen Actors Guild union duties; the divorce was finalized in 1949. Wyman, who was a registered Republican, also stated that their break-up was due to a difference in politics (Reagan was still a Democrat at the time). When Reagan became president 32 years later, he had the distinction of being the only divorced person to assume the nation's highest office; Donald Trump (2 divorces) would follow him in that respect 36 years later. Reagan and Wyman continued to be friends until his death, with Wyman voting for Reagan in both his runs and, upon his death, saying "America has lost a great president and a great, kind, and gentle man."

While traveling with the Cubs in California in 1937, Reagan took a screen test that led to a seven-year contract with Warner Bros. studios. He spent the first few years of his Hollywood career in the "B film" unit, where, Reagan joked, the producers "didn't want them good; they wanted them Thursday".

He earned his first screen credit with a starring role in the 1937 movie Love Is on the Air, and by the end of 1939, he had already appeared in 19 films, including Dark Victory with Bette Davis and Humphrey Bogart. Before the film Santa Fe Trail with Errol Flynn in 1940, he played the role of George Gipp in the film Knute Rockne, All American; from it, he acquired the lifelong nickname "the Gipper." In 1941, exhibitors voted him the fifth most popular star from the younger generation in Hollywood.

After completing 14 home-study Army Extension Courses, Reagan enlisted in the Army Enlisted Reserve and was commissioned a second lieutenant in the Officers' Reserve Corps of the Cavalry on May 25, 1937.

That November, Reagan won a landslide re-election victory, carrying 49 of the 50 states. Mondale won only his home state of Minnesota and the District of Columbia. Reagan won 525 of the 538 electoral votes, the most of any presidential candidate in U.S. history. In terms of electoral votes, this was the second-most lopsided presidential election in modern U.S. history; Franklin D. Roosevelt's 1936 victory over Alf Landon, in which he won 98.5 percent or 523 of the then-total 531 electoral votes, ranks first. Reagan won 58.8 percent of the popular vote to Mondale's 40.6 percent. His popular vote margin of victory—nearly 16.9 million votes (54.4 million for Reagan to 37.5 million for Mondale)—was exceeded only by Richard Nixon in his 1972 victory over George McGovern.

Reagan was raised in a low-income family in small towns of northern Illinois. He graduated from Eureka College in 1932 and worked as a sports commentator on several regional radio stations. After moving to California in 1937, he found work as an actor and starred in a few major productions. Reagan was twice elected president of the Screen Actors Guild—the labor union for actors—where he worked to root out communist influence. In the 1950s, he moved into television and was a motivational speaker at General Electric factories, during which time he became a conservative. Reagan was a Democrat until 1962 when he switched to the Republican Party. In 1964, Reagan's speech "A Time for Choosing" supported Barry Goldwater's foundering presidential campaign and earned him national attention as a new conservative spokesman. Building a network of supporters, Reagan was elected governor of California in 1966. As governor, Reagan raised taxes, turned a state budget deficit to a surplus, challenged the protesters at the University of California, ordered in National Guard troops during a period of protest movements in 1969, and was re-elected in 1970. He twice ran unsuccessfully for the Republican presidential nomination, in 1968 and 1976.

After graduating from Eureka in 1932, Reagan took jobs in Iowa as a radio announcer at several stations. He moved to WHO radio in Des Moines as an announcer for Chicago Cubs baseball games. His specialty was creating play-by-play accounts of games using only basic descriptions that the station received by wire as the games were in progress.

Reagan attended Dixon High School, where he developed interests in acting, sports, and storytelling. His first job involved working as a lifeguard at the Rock River in Lowell Park in 1927. Over six years, Reagan performed 77 rescues. He attended Eureka College, a Disciples-oriented liberal arts school, where he became a member of the Tau Kappa Epsilon fraternity, a cheerleader. He was an indifferent student, majored in economics and sociology and graduated with a C grade. He developed a reputation as a "jack of all trades", excelling in campus politics, sports, and theater. He was a member of the football team and captain of the swim team. He was elected student body president and participated in student protests against the college president.

Reagan had a particularly strong faith in the goodness of people; this faith stemmed from the optimistic faith of his mother and the Disciples of Christ faith, into which he was baptized in 1922. For that period, which was long before the civil rights movement, Reagan's opposition to racial discrimination was unusual. He recalled the time when his college football team was staying at a local hotel which would not allow two black teammates to stay there, and he invited them to his parents' home 15 miles (24 kilometers) away in Dixon. His mother invited them to stay overnight and have breakfast the next morning. His father was strongly opposed to the Ku Klux Klan due to his Catholic heritage, but also due to the Klan's anti-semitism and anti-black racism. After becoming a prominent actor, Reagan gave speeches in favor of racial equality following World War II.

Reagan's father nicknamed his son "Dutch", due to his "fat little Dutchman" appearance and Dutch-boy haircut; the nickname stuck with him throughout his youth. Reagan's family briefly lived in several towns and cities in Illinois, including Monmouth, Galesburg, and Chicago. In 1919, they returned to Tampico and lived above the H. C. Pitney Variety Store until finally settling in Dixon, Illinois. After his election as president, Reagan lived in the upstairs White House private quarters, and he would quip that he was "living above the store again".

c. 1916–17. Pictured from left: Father Jack, older brother Neil, Reagan (with "Dutchboy" haircut), and mother Nelle

Ronald Wilson Reagan (/ˈ r eɪ ɡ ən / ; February 6, 1911 – June 5, 2004) was an American politician who served as the 40th president of the United States from 1981 to 1989 and became a highly influential voice of modern conservatism. Prior to his presidency, he was a Hollywood actor and union leader before serving as the 33rd governor of California from 1967 to 1975.

Ronald Wilson Reagan was born on February 6, 1911, in an apartment on the second floor of a commercial building in Tampico, Illinois. He was the younger son of Nelle Clyde (née  Wilson; 1883–1962) and Jack Reagan (1883–1941). Jack was a salesman and storyteller whose grandparents were Irish Catholic emigrants from County Tipperary, while Nelle was of English, Irish and Scottish descent. Reagan's older brother, Neil Reagan (1908–1996), became an advertising executive.

This "A Time for Choosing" speech was not enough to turn around the faltering Goldwater campaign, but it was the crucial event that established Reagan's national political visibility. David Broder of the Washington Post called it, "the most successful national political debut since William Jennings Bryan electrified the 1896 Democratic convention with his Cross of Gold speech."