In 1981 the country entered "The Era of Reaganomics" and experienced the longest era of economic expansion in peace-time ever-for any country in the history of the world.2 This paper will show how the Reagan Administration's policies affected the economy of the 1980's. ... One problem was that the Reagan Administration was fighting the Cold War, trying to outspend the Soviets in the military, making ours far superior to theirs and giving them no hope for victory. ...