Ronald Reagan was elected President in 1980. He defeated incumbent Jimmy Carter by winning 44 out of the 50 American states. When Ronald Reagan became president, he signed the Economic Recovery Tax Act of 1981, which some people say helped the economy. Afterwards more and more jobs began to appear. More people were getting jobs. Inflation decreased. During Reagan's presidency, he also helped expand the American military. This also created more jobs, but also raised the deficit. During his first term, the economy went from a 4.5% to 7.2%.