While at the White House, Hanke worked closely with his long-time associate, CEA member William A. Niskanen. He was known as a member of the supply-side economics movement within the Reagan Administration. It was during this time that Hanke was noted for developing President Ronald Reagan's program for privatizing public assets and services – particularly municipal water systems and public grazing and timber lands. This plan was endorsed by one of President Reagan's closest allies, Nevada Senator Paul Laxalt, among others.