Reagan's policy was to cut individual and corporate tax rates sharply, and to restrain the growth in government spending and regulation. The Democrats, who were in control of the House, resisted and delayed the Reagan tax cuts, so they were not fully implemented until 1983. Obama had the luxury of having his party in control of both houses of Congress, so he was able to get his proposed, massive government spending increases enacted almost immediately.
When Reagan left office in January 1989, he had presided over "seven fat years," as Bob Bartley, the now-deceased editor of The Wall Street Journal, called the Reagan era. Unemployment was half of its recession high, economic growth averaged more than 4 percent after the recession bottom in 1982, the deficit was falling and was under a very manageable 3 percent of gross domestic product, the GDP-debt ratio was falling, inflation had dropped by about two-thirds, and every American individual and company had seen very sharp reductions in their marginal tax rates — the maximum rate fell from 70 percent to only 28 percent by the time Reagan left office.
Keynesian economics, practiced during the late 1960s and 1970s, became thoroughly discredited with the stagflation of the 1970s — which, in theory, was impossible under the old model — and the subsequent Reagan supply-side boom.
The Clinton administration, after its so-so economic performance in the first term with small increases in tax rates and government spending, partially reverted to Reaganomics in its second term; with a capital-gains rate cut and reductions in spending as a percentage of GDP. The result was very strong economic growth and budget surpluses
Obama?s Economics Failing Under Keynesian Policies