From Tropics of Meta by Jason Tebbe:
We often tend to mistakenly think of the 1980s in ways that paint it as uniformly conforming to certain trends consistently throughout the decade. If you look into the cultural and political history of the 1980s, however, you will see something in the late 1980s I call “Reagan Dusk.” During this period criticism of unequal social conditions became more prominent in popular culture, and there was a growing negative reaction to what neoliberalism had wrought. This coincided both with the thawing of the Cold War and the Iran-Contra Scandal, which undermined the Reaganite view of global conflict as well as trust in the Gipper, respectively. The president himself was sundowning, growing senile and more prone to health problems. Public memory of the 1980s has mish-mashed it into a big neon spandex blur, the so-called “Greed Decade” for many progressives, or a golden age overseen by Ronald the Great by conservatives.
Both interpretations are wrong. Dissent coincided with greed. Reagan’s popularity waxed and waned, and his so-called “revolution” started running into its own limits.
1986 was the crucial transitional year for all of this. That was the year the Iran Contra scandal broke, hampering Reagan’s popularity and bringing on talk of a second Watergate. 1986 was also saw a summit in Iceland between Gorbachev and Reagan that heralded a great lessening of tensions between the superpowers. Earlier that year the Chernobyl disaster forced the hand of glasnost in the Soviet Union. In America Reagan signed a massive tax bill that included tax increases on the wealthy from the extremely low levels he had set in 1981 and a tacit admission that supply side economics were not magic beans that could lower the deficit by cutting taxes. (Of course, that idea would soon be back.) All the while, AIDS raged, the horrible toll unacknowledged by the president. In a nation where thousands were dying of disease, there was no “Morning in America.”