Soon after taking office as president, Reagan began implementing sweeping new political and economic initiatives. His supply-side economic policies, dubbed "Reaganomics", advocated tax rate reduction to spur economic growth, economic deregulation, and reduction in government spending. In his first term, he survived an assassination attempt, spurred the War on Drugs, invaded Grenada, and fought public sector labor unions. Over his two terms, the economy saw a reduction of inflation from 12.5% to 4.4% and an average real GDP annual growth of 3.6%. Reagan enacted cuts in domestic discretionary spending, cut taxes, and increased military spending, which contributed to increased federal debt overall. Foreign affairs dominated his second term, including the bombing of Libya, the Iran–Iraq War, the Iran–Contra affair, and the ongoing Cold War. In June 1987, four years after he publicly described the Soviet Union as an "evil empire", Reagan challenged Soviet General Secretary Mikhail Gorbachev to "tear down this wall!", during a speech at the Brandenburg Gate. He transitioned Cold War policy from détente to rollback by escalating an arms race with the USSR while engaging in talks with Gorbachev. The talks culminated in the INF Treaty, which shrank both countries' nuclear arsenals. Reagan began his presidency during the decline of the Soviet Union, which ultimately collapsed nearly three years after he left office.