A good example why it is not a good idea to fight the Feds: Big Spending Reagonomics Stock Market circa 1980s " The Recession of 1982 By 1982, âReaganomicsâ had taken its toll as several banks failed, the stock market plummeted, and unemployment soared in the worst economic recession since the Great Depression. Eventually the economy pulled out of the pit, thanks in part to sound policies from the Federal Reserve Board. Deficits and Debt Although Reagan entered the White House promising to reduce government spending and return more power to the states, he ironically became the biggest spender in American history. Not even Rooseveltâs New Deal during the Depression or Johnsonâs Great Society had dumped so much money into the economy as Reaganomics. Between 1980 and 1988, Congress overspent its budget by more than $200 billion every year, while the national debt soared from roughly $1 trillion to $2.5 trillion."