ABSTRACT

The great expansion of trade in the final decades of the century touched virtually every corner of the economy, and coinciding neoliberal changes in policy tended to compound the effects of globalization for both consumers and workers. Neoliberalism emphasizes a regulatory regime and trade regime that are liberal in the classical sense, with minimal government interference. America’s political economy became more neoliberal in the 1980s and 1990s as the government pursued trade liberalization and deregulation. The Republican Party was becoming more conservative and more competitive in national politics, and its ascent helped pave the way for neoliberal economic reforms. The growing anti-tax sentiment was highlighted by the 1978 property tax “revolt” in California and R. Reagan’s victory in 1980. Reagan’s 1980 campaign centered on the issue of tax cuts, and he was able to deliver on his pledge in his first year in office with the Economic Recovery Tax Act.