Quiz Guide #22 Election of 1980: Carter (Democrat) ran against Reagan (Republican). Carter restricted by the recession and his actions to handle foreign affairs of Camp David Accords and Iran Hostage Crisis. Reagan promised New Deal for Americans including less government spending, less government control, and more free enterprise. Reagan wins easily since most was against second Carter term. Reaganomics: "supply-side economics" (trickle down economy) It was Reagan's economy policy that called for tax reduction and strict spending watch. It would stimulate new investment and economic growth, boost productivity, and reduce federal debt. Lost revenues would come from cut of spending. He also let businesses operate at their own discretion.