Document Type

Research Report

Publication Date

5-2025

Abstract

Executive Summary

Ronald Reagan’s presidency (1981–1989) dramatically reshaped the American economic and institutional landscape. He championed “supply-side” economics, dubbed “Reaganomics.” Through sweeping tax cuts, deregulation, and a reallocation of federal funding priorities, Reagan shifted the burden of public services, especially in education and research, from government to individuals and private markets. Public universities saw deep cuts in federal support and increasingly turned to industry partnerships and commercialization to survive. Simultaneously, Reagan expanded defense research funding, fostering a close relationship between the government and elite research institutions. Innovation policy was formalized through the Bayh-Dole Act and the creation of the U.S. Court of Appeals for the Federal Circuit.

Decades later, many of Reagan’s themes reemerged under President Donald Trump. The Trump administration mirrored Reagan’s priorities: cutting taxes, defunding higher education, expanding defense budgets, and pushing universities toward privatization. Both presidents treated higher education as a private benefit, emphasized industry collaboration, and deprioritized funding for social sciences and liberal arts. This report traces those parallel approaches in tax policy, education reform, research funding, and innovation governance. This article aims to compare both presidents’ policies, especially regarding their tax reforms and economics.

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