ABSTRACT
This chapter examines policy proposals and changes-since the late 1970s-on the broad issues that have divided conservatives and liberals: the role of government, social welfare, race, and social issues. It argues that on specific policies related to the broad issues, important conservative shifts took place. The conservative policy shift did not begin with the election of Ronald Reagan in 1980; it had firmly taken hold in 1978, during the administration of Democrat Jimmy Carter. Many policy initiatives were consistent with the traditional social welfare liberalism of Democrats. Changes in three areas signified the administration's shift to the right: tax and budgetary policy, its conversion to monetarism, and deregulation. The Ronald Reagan administration enjoyed mixed success in its attempt to instill a new conservative policy regime. Income tax reform preoccupied the Reagan administration during its second term in office as well. The Tax Reform Act of 1986 was the centerpiece of the administration's domestic policy in its latter years.
