The song is actually very critical of the United States all together, and really condemned a lot of Reagan's ideas. A big part of the song is also about living in a dead factory town that got sold out, people go off to fight a war that he realizes is pointless for a country that claims will give them opportunities and ends up screwing them.
It is in absolute opposition to most of Reagan's policies, and beliefs but has been consistently misused by not only him, but many ignorant people on the right (please note, "ignorant" in this sense has nothing to do with beliefs they hold, but with the fact that they choose the song without knowing what it means)
here are the lyrics:
Born down in a dead man's town
The first kick I took was when I hit the ground
You end up like a dog that's been beat too much
'Til you spend half your life just covering up
[chorus:]
Born in the U.S.A.
Born in the U.S.A.
Born in the U.S.A.
Born in the U.S.A.
I got in a little hometown jam
And so they put a rifle in my hands
Sent me off to Vietnam
To go and kill the yellow man
[chorus]
Come back home to the refinery
Hiring man says "Son if it was up to me"
I go down to see the V.A. man
He said "Son don't you understand"
[chorus]
I had a buddy at Khe Sahn
Fighting off the Viet Cong
They're still there, he's all gone
He had a little girl in Saigon
I got a picture of him in her arms
Down in the shadow of the penitentiary
Out by the gas fires of the refinery
I'm ten years down the road
Nowhere to run, ain't got nowhere to go
I'm a long gone Daddy in the U.S.A.
Born in the U.S.A.
I'm a cool rocking Daddy in the U.S.A.
Born in the U.S.A.
On a sidenote: Bruce Springsteen is lyrically amazing, and reminds me of almost a modern day Woodie Guthrie. Coincidentally, Guthrie's song "This land is your land" which was highly critical of the U.S. as well, has been used as a patriotic anthem for decades. Usually the last two verses:
"As I was walkin' - I saw a sign there
And that sign said - no tress passin'
But on the other side .... it didn't say nothin!
Now that side was made for you and me!"
and
"In the squares of the city - In the shadow of the steeple
Near the relief office - I see my people
And some are grumblin' and some are wonderin'
If this land's still made for you and me."
are removed. However, these last two verses change the entire tone of the song from some happy go lucky hippy campfire song into a serious criticism.