This chapter considers the Reagan presidency and the dilemma faced by powerful groups that controlled American politics. The dilemma is that the program for change rested upon a public philosophy different from, even antithetical to, the one on which Reagan campaigned. Within a few short months, the new administration initiated a far-reaching program of spending cuts, tax changes, deregulation, and reduced social services that completely turned on its head the campaign rhetoric quoted earlier. “Problems of flesh and blood” were sacrificed to “abstract economic theory,” causing “pain” and destroying “the moral fiber” of real people.