President Ronald Reagan came into office in 1980, the result of a conservative movement that stretched back at least to Barry Goldwater's unsuccessful run for the presidency in 1964. Soon after taking office, Reagan and other conservatives made a number of sweeping changes, some of which have had enduring consequences. Claiming that the federal government was bloated and wasteful, and that social welfare spending fostered dependency on the state, the Reagan Administration slashed spending on a number of programs, including food stamps and payments issued as part of the Aid for Families with Dependent Children program.

Reagan also initiated significant tax cuts, long a focus of conservative policy-making. These moves were not framed as temporary austerity measures, but as structural reforms aimed at reducing the size of government. They had human consequences, particularly since they were undertaken in the midst of a recession that Reagan inherited from his predecessor Jimmy Carter (who also favored tax cuts). Reagan coupled this domestic agenda with increased military spending and aggressive anti-communist rhetoric. With military spending high and tax revenues lowered, Reagan's administration oversaw enormous budget deficits.

Overall, the rise of the "new Right" had ramifications throughout American politics. There was a general shift rightward, at least at the national level. Even liberals (President Bill Clinton, for example) had to adopt conservative rhetoric, focusing on market-based reforms. Additionally, Reagan's embrace of conservative social issues made these "family values" concerns central to national politics. Conservative views on abortion, crime, affirmative action, and other issues drove the national agenda for decades to come.