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Reagan focused his first months in office on two goals, tax reforms and increased military spending. During Reagan's first term, the nation fell into a recession that lasted from 1981 to 1982, with unemployment remaining high, as much as 10%, during 1982 and 1983.eagan focused his first months in office on two goals, tax reforms and increased military spending. During Reagan's first term, the nation fell into a recession that lasted from 1981 to 1982, with unemployment remaining high, as much as 10%, during 1982 and 1983.
President Reagan boosted defense outlays by 41 percent during his terms, but he also cut real nondefense outlays by 10 percent. Overall, total discretionary spending increased by 15.8 percent during Reaganâs terms.