Más on Reagan and How We Got Here

By A. Govea • alberto@holatexas.us

August 31, 2026

Illustration of "Trickle Down Economics" featuring the wealthiest men in the US

In my last article on this subject, I mentioned that I would focus more on Fox News next. Pero, before we can get there, we need to revisit Ronald Reagan and the political and economic shift he ushered in.

Reagan introduced what became known as neoliberalism, a philosophy that championed Free‑Market solutions over federal intervention. At its core, neoliberalism embraced top‑down economics—cutting taxes and regulations for big business with the promise that corporate prosperity would “lift all boats.” Many came to know this as Trickle‑Down Economics.

But the reality was far different. The benefits flowed mostly to the upper half of the country, while working‑class communities—especially minorities and La Raza—saw little improvement. The 1980s were prosperous for some, but not for much of our Latino community.

This is not to say our community stayed quiet. The Chicano Movement continued pushing for equality across education, labor, politics, and culture. Yet the national embrace of neoliberalism was so strong that it often erased or stalled the progress we fought for.

During this era, social programs were cut to fund tax breaks for the wealthy. Military spending surged, and local police forces became increasingly militarized. These shifts strengthened the power of the white, affluent class while weakening support systems for working families.

Still, the economy relied heavily on cheap labor, much of it provided by immigrants from Latin America—especially Mexico. But Reagan faced more than just Mexican migration. Large numbers of Cubans and Haitians had arrived in Florida seeking refugee status. By the end of the Carter administration, more than 125,000 had arrived.

Many were placed in Reagan‑era detention centers, where overcrowding and long waits led to riots and unrest. This is a story on it’s own, but not today.

All of this set the stage for the 1986 Immigration Reform and Control Act (IRCA). The bill increased funding for immigration enforcement and made it illegal for employers to hire undocumented workers. Most importantly, it allowed immigrants who had lived in the U.S. for at least five years to apply for temporary legal status, which could later become permanent residency if they met the requirements.

The fallout from IRCA—both good and bad—is a story that deserves its own space. Pero, I’ll save el resto for next week. And yes, I promise we’ll get back to Fox News soon.