Why did it appear President Reagan was being contradictory when he increased defense spending so much? He had promised the American people he would not raise spending. The Defense Department already had all the weapons it needed. He was trying to get the Soviets to agree to reduce nuclear arsenals. The United States was already having an issue with government waste.
He promised to cut taxes; and he did. He reduced the tax using the Laffer curve and by using "trickle-down" or supply-side economics. Reagan intitiated the START program, which raised defense spending and forced the Russians to keep up with the US. The Soviets tried to keep up but then realized it lacked the funds for military spending, since the Soviet Union was having a hard time simply feeding the people. This led to the selling of US grain to the Soviets and led to more friendly tensions between the two nations and lessened the tensions of the Cold War. Although Reagan spent lots of money on the defense program, it forced the Soviets to give up in their arms race and focus on their domestic problems.
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