The conservative movement, known as the New Right, gained momentum from the 1964 Barry Goldwater campaign. Public discontent with Jimmy Carter's presidency, marked by stagflation, the Iran hostage crisis, and the energy crisis, paved the way for Ronald Reagan's victory in the 1980 election. Reagan embodied the New Right's three main tenets: Cold War conservatism, pro-business economic policies, and moral/religious conservatism reacting against the cultural upheavals of the 1960s and 70s. His election was seen as a rejection of previous social changes.

Reagan's economic policies, dubbed 'Reaganomics' or supply-side economics, aimed to stimulate prosperity through tax cuts and decreased federal spending. This was a direct contrast to Keynesian economics. The Economic Recovery Act of 1981 significantly cut income taxes and corporate taxes, disproportionately benefiting the wealthy, with the idea that prosperity would 'trickle down' to all.

While Reagan cut federal spending on welfare programs like food stamps, he dramatically increased military spending, leading to significant annual budget deficits. This made new social programs unfeasible. Deregulation was another key aspect of his policy, with reduced regulations on industries like automotive (emissions, safety) and the opening of federal lands and offshore waters for resource extraction, reversing previous environmental protections.

The Reagan administration manifested the moral and religious aims of the New Right primarily through judicial appointments. Reagan appointed four conservative judges to the Supreme Court: Sandra Day O'Connor, William Rehnquist, Antonin Scalia, and Anthony Kennedy. These appointments led to the scaling back of affirmative action and state-level restrictions on abortion, effectively rolling back some provisions of Roe v. Wade. Reagan's presidency marked a significant shift away from the liberalism of the preceding decades.