Changes

As President Reagan took office, a series of events helped end the malaise period. Volcker's interest rate hikes began to kill inflation just as massive tax cuts began to spur the economy. Furthermore, Reagan's defense buildup restored American confidence against the Soviet Union. On inauguration day in January 1981 Iran released the hostages. Oil prices cratered during a large glut in the 1980s, causing a sharp decline in Soviet finances. Resistance to the Soviets in Afghanistan became more resolute and led to the eventual Soviet withdrawal in 1989. For many Americans the dark period of the 1970s appeared to be over and as stated in the 1984 presidential campaign, "it's morning in America again."