Skip to main content icon/video/no-internet

RONALD REAGAN SERVED as the 40th President of the United States from 1981 to 1989. The former film actor turned to politics after serving in various positions such as the president of the Screen Actors Guild (SAG) and as the spokesmen for General Electric. Then in 1967, he was elected governor of California, which would eventually open the doors that led him to the White House.

His politics were conservative, focusing heavily on tax cuts, pro-military government, and anti-communism. “Reaganomics,” as his economic policy was usually referred to, was supposedly similar to the traditional principles that helped form the foundation of the American way of life. Unfortunately, Reagan's economic policy suffered from numerous contradictions, the chief among these being that increased defense spending together with cuts in taxes for corporations and rich individuals would somehow result in a balanced federal budget. The result was a quadrupling of the federal debt in just eight years. Aside from his support of big business interests, Reagan is most widely known for yet another declaration of a war on drugs, the fourth such war in the last century.

Reagan's involvement in political scandal was widespread. In fact, over 120 of his appointees resigned due to being indicted, convicted, or being under an unethical cloud. This is the largest number of corruption cases of any administration in American history.

Iran-Contra

In 1986, the Reagan administration was faced with the Iran-Contra scandal that dealt with policy decisions based on anti-communism, covert operations and, a subsequent cover up. The controversy arose when members of Reagan's administration agreed to sell arms to the Iranian government for the release of American hostages held in Lebanon and elsewhere. The administration gave the revenue from the sale to the anti-communist rebels, the Contras in Nicaragua. These events were investigated and there was a national hearing in 1987. The Congressional investigating committee stated that Colonel Oliver North, a White House staffer, had violated the law, but later court trails failed to convict him. This act by the Reagan administration violated the Arms Export Control Act, the Boland Amendment, and the National Security Act of 1947.

Previously, Congress had declared that it was unlawful to sell arms for hostages and to support civil wars on foreign soil without Congressional approval. Under the Boland Amendment, Congress also ordered all military aid to the Contras ceased (after it was discovered that the CIA mined the harbor in Nicaragua's capital). The Reagan White House hired an entire group of ex-military members, along with arms dealers and former CIA officials, that became known as the Enterprise to sell arms to Iran and send some of the profits from that sale to the Contras. Reagan's administration also solicited secret contributions from rich Republicans and foreign governments, in violation of the Boland Amendment.

The Tower Commission that investigated the Iran-Contra scandal did not feel that the President was directly responsible for the scandal. The commission did, however; criticize Reagan for his lack of supervision over his subordinates. They argued that it was his supervision deficiency in this area that created the atmosphere for the scandal to occur. Special prosecutor Lawrence Walsh was quoted as saying that Iran-Contra will be remembered in history “as a non-sordid disregard of constitutional restraints. … I think the president was wrong, he was defiant, he was deliberate, but he wasn't dirty.”

...

  • Loading...
locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles

Sage Recommends

We found other relevant content for you on other Sage platforms.

Loading