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. Citing the economic theories of Arthur Laffer, Reagan promoted the proposed tax cuts as potentially stimulating the economy enough to expand the tax base, offsetting the revenue loss due to reduced rates of taxation, a theory that entered political discussion as the Laffer curve. Reaganomics was the subject of debate with supporters pointing to improvements in certain key economic indicators as evidence of success, and critics pointing to large increases in federal budget deficits and the national debt.