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In 1980, the conservative Ronald Reagan, a former supporter of Barry Goldwater, regained the presidency for the Republicans and reversed long-standing political trends by instituting a supply-side economic program of budget and tax cuts. He also advocated increased military spending and presided over the largest military buildup during peacetime in American history. The Iran-contra affair, which broke in late 1986, marred the last years of his tenure, though his vice-president, George H. W. Bush, was nonetheless able to defeat the Democratic nominee, Michael Dukakis, in the 1988 election.
Bush was generally recognized as strong on foreign policy. He was widely lauded for his role in orchestrating the coalition of forces against Iraq in the Persian Gulf War. He also largely continued Reagan's policy toward the Soviet Union. On the domestic side, however, Bush's administration was perceived as being slow to respond to such problems as stagnant economic growth, rising unemployment, and the unaffordability of health care for many Americans. Bush's high popularity after the Persian Gulf War dropped rapidly, and he lost the 1992 presidential election to the Democrat, Arkansas's Governor Bill Clinton.
In the 1994 congressional and state elections, however, the Republican party scored major victories and increased its hold in the South. Republicans unseated long-time Democratic incumbents, winning control of both houses of Congress (for the first time since the 1950s) and claiming several governorships. Newt Gingrich, who spearheaded the Republicans' congressional election campaign with his conservative "Contract with America" program, became speaker of the House. While bills were passed on the key program components, many items were thwarted or defeated in Congress or by the president.
The 1996 elections saw incumbents generally retain their offices. Former Senate majority leader Bob Dole won the Republican nomination for the presidency, but he and his running mate, Jack Kemp, were never able to reduce significantly President Clinton's substantial lead. In the House and Senate, Republicans retained their majorities, slightly diminished in the former and slightly increased in the latter. The 1998 mid-term elections saw the Republican margin in the House reduced, despite expectations that they would benefit from the effects of the Lewinsky scandal; the results led to Gingrich's resignation from office.
In the 2000 elections, the party's presidential nominee, George W. Bush appeared generally to lead in the polls in what ultimately became a popular-vote loss to Democrat Al Gore. Despite not winning the popular vote. Bush secured the presidency with a victory in the electoral college when he won Florida by an extremely narrow margin and outlasted Gore's unsuccessful court challenge of the Florida vote-counting process. The party did not fair as well in other races for national office, and the Democrats made gains in Congress, although the Republicans retained control there. The party lost control of the Senate, however, as a result of a defection in mid-2001, but regained it after the Nov., 2002, elections.
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