The purpose of this study was to examine the effects of soft power versus hard power in U.S. policy towards Latin America. In recent years America's unipolar moment has been challenged from populist leaders in the region to its inability to get a handle on the flow of illegal immigrants and illicit drugs that reach its shores. This thesis is a step to understanding the difference between power and influence as well as the effects of hard power and soft power in U.S. foreign policy. A historical comparative case study analysis has been conducted utilizing the cases of FDR's Good Neighbor policy and Reagan's contra war policies. This qualitative approach examined specific short-term and long-term goals of each policy and analyzed each strategy's ability to achieve those stated goals. The results of the study reveal that both soft and hard power approaches can have positive as well as negative effects on American influence in Latin America.