1984: The recession of 1982 extends its hands beyond 1983 to 1984 unemployment peaks in mid 1983 at 12.3% while inflation remains low because of interest rate hikes the signs of economic depression is showing, the Tax cuts have not delivered Reagan's promise of prosperity, unwilling to cut the defense budget to increase Government revenue the Congress shuts down not willing to budge it becomes a serious crisis as Ronald Reagan's popularity sinks from a high of over 60% in 1981 to a low of 38%.