Ronald Reagan explained his strategy was an arms buildup that would leave the Soviets far behind, with no choice but to negotiate arms reduction. Finally, displaying his characteristic optimism, he praised liberal democracy and promised that such a system eventually would triumph over Soviet communism. Reagan appreciated the revolutionary change in the direction of the Soviet policy with Mikhail Gorbachev, and shifted to diplomacy, with a view to encourage the Soviet leader to pursue substantial arms agreements. He and Gorbachev held four summit conferences between 1985 and 1988: the first in Geneva, Switzerland, the second in Reykjavík, Iceland, the third in Washington,
Presidency of Ronald Reagan programs and priorities that had dominated the national agenda since the 1930s. Domestically, the Reagan administration enacted a major tax cut, sought to cut non-military spending, and eliminated federal regulations. The administration's economic policies, known as "Reaganomics", were inspired by supply-side economics. The combination of tax cuts and an increase in defense spending led to budget deficits, and the federal debt increased significantly during Reagan's tenure. Reagan signed the Tax Reform Act of 1986 (which simplified the tax code by reducing rates and removing several tax breaks) and the Immigration Reform and Control Act of 1986 (which enacted sweeping changes