The extent to which ‘big government’ was reduced.

The idea

‘Big government’ means extensive federal intervention in the economy and welfare. Reagan promised to reduce it by cutting taxes, deregulating and shrinking domestic programmes. In practice, the extent was limited. Deregulation and tax cuts did reduce some federal reach, and some welfare rolls fell. However, defence spending rose, Social Security and Medicare were protected, and federal deficits and debt grew. The bureaucracy was not dramatically dismantled.

What earns the marks

• Defines ‘big government’ as federal spending, taxation, regulation and welfare provision, and uses that definition consistently.
• Explains Reagan’s aims to reduce big government through tax cuts, deregulation and cuts to domestic programmes.
• Provides evidence of limited reduction, such as continued or increased defence spending, protection of Social Security and Medicare, and rising deficits and debt.
• Assesses areas where federal reach did shrink, such as deregulation in some industries and reduced eligibility or funding for some welfare programmes.
• Reaches a reasoned overall judgement on the extent of reduction, recognising continuity as well as change.

Common mistakes and how to put them right

• Equating tax cuts with a smaller state.

  Put it right: Examine spending, regulation and federal responsibilities as well, because deficits and debt can grow even when taxes fall.

• Ignoring protected programmes; correction: note that Social Security and Medicare were politically difficult to cut and continued to consume large federal funds.

• Treating ‘big government’ as only welfare.

  Put it right: Include defence, taxation, regulation and the overall scale of federal activity in the assessment.

Exam tips

• Define ‘big government’ at the start so the extent of reduction can be measured against clear criteria.
• Use a balanced structure that examines evidence for reduction and evidence against it before reaching a judgement.
• Refer to specific policies and outcomes, such as deregulation, tax changes, defence budgets and entitlement spending, rather than general statements.