Reaganomics In America

As a result of lower taxes, it prompted corporation to invest, leading U.S consumers to buy more. As the company grew, due to increased consumer spending, it would indirectly raise government tax revenues. The trend would trickle to benefit even the poorest U.S citizens. Reaganomics principles encouraged many industries to have self-control during the early 80s. This led to greater competition and lower prices for consumers (Boskin 1887).

Ronald Reagan created economic policies called Reaganomics. These policies were different than the policies that the United States had since Franklin

Reagan really focused on improving the economy during his presidency, with a plan he called Reaganomics, or supply side economics. The main parts of this plan were cuts on taxes and budgets, and monetary policy. Also, he wanted to reduce government regulation on businesses. He thought that these and increasing defense expenditures would heighten economic efficiency. Reagan managed to cut taxes by twenty five percent in three years. However, the plans did not work out at first, causing a recession that some call “The Great Inflation.” The national debt heightened substantially, and the rate of unemployment reached up to eleven percent. Despite these negative outcomes, the economy experienced a sudden growth and prosperity in 1983, which was

Conte & Karr (2001) report the economic growth of the 1980’s in the United States sees President Regan cutting taxes and slashing social programs. President Reagan also

In addition, Reagan’s 1981 Program for Economic Recovery had four major policies, which are: to reduce the growth of government spending, reduce the marginal tax rates on income from labor and capital, reduce regulation, and to reduce inflation by controlling the growth of the money supply (Niskanen). Reagan’s Economic Recovery Program, also known as Reaganomics, was the most serious recession of the U.S. economic policy since Franklin D. Roosevelt’s New Deal (Niskanen). However, according to historian, Eric Foner, there have been many issues with Reaganomics since the new policies, rising stock prices, and deindustrialization inevitably resulted into the rise of economic inequality, also known as the second gilded age (Foner 832).

Ronald Reagan is to this date the oldest serving president, and the effects of his presidency have affected not only the United States of America but most of the world as well. The consensus among historians is that Ronald Reagan left a lasting legacy that was a great one in numerous ways. His Reaganomics improved America’s economy greatly, and secured its future economic prosperity. He also fought communism head on and was able to end it in most parts of the world, but more importantly in Soviet Russia. However, in doing so he got wrapped up in the Iran-Contra Affair, which will forever be tied to his name in a negative regard. Within America, Reagan was able to improve society such as his success in curbing the use of illegal drugs.

This, however, created chaos in other public programs for instance, Medicare and Social Security. Reagan was fairly ‘laissez faire’ and delivered on his promise to decrease government-intervention by reducing federal regulations on business and industry, a policy preferably known as deregulation which had begun under Carter’s presidency (Newman and Schmalbach 650). Nevertheless, Reagan opposed labor unions-he once fired thousands of striking air traffics who were against their contracts- and many businesses followed suit by taking strict measures against striking. As a result, labor union membership and striking drastically decreased as the economy grew tough during the Recession of 1982, and foreign competition for American jobs made jobs insecure and negatively affected worker’s wages (Newman and Schmalbach).

The economy focused on cutting taxes, reducing the size of government, and eliminating controls over certain business, called deregulation.

From a liberal perspective, the Reagan Revolution was insignificant for the United States. For example, Reagan’s plan was to stimulate the economy by introducing the Reaganomics. He lowered tax rates, which left more money for individuals and businesses to spend, save, or invest. President Reagan cut federal taxes by 25 percent over a three-year period, but the economy continued to struggle for two years and the unemployment rate rose. Although, the personal income grew in the 1980s, the income gap between the rich and poor widened. The Reaganomics assisted the rich, but hurt the poor. These tax cuts would raise wealth among the rich and then would “trickle down” to all Americans. The problem with that is that the middle class Americans would have to wait for trickle effect.

Reagan implemented policies based on supply-side economics and advocated a classical liberal and laissez-faire philosophy, seeking to stimulate the economy with large, across-the-board tax cuts. Reagan’s outlook on economics was what he and the public called “Reaganomics”. “The blueprint for “Reaganomics,” was a sketched out supply-side approach to the economic, including massive cuts in income taxes, capital gains taxes, and corporate taxes,”(340). His platform advocated reducing tax rates to spur economic growth, controlling the money supply to reduce inflation, deregulation of the economy, and reducing government spending. Reagan's policies proposed that economic growth would occur when marginal tax rates were low enough to spur investment, which would then lead to increased economic growth, higher employment, and wages. Reagan’s beliefs on cutting taxes were supported by ideas of William Sumner who believed that the best equipped to win the struggle for existence was the American businessman, and concluded that taxes and regulations serve as dangers to his survival. Reagan believed strong nations were composed of people who were successful at expanding their empires and these strong nations would survive in the struggle for dominance.

Even though Reagan was very confident about his economic plan many others were weary of his ideas. George W. Bush Sr. proclaimed Reagan’s economic ideas as ‘Voodoo’ economics believing Reagan’s policy would not live up to its predicted outcome; ironically enough Bush and his son both adopted these policies during their presidencies. Many important congressmen had many fears in Reagan’s policies, they believed that imposing such tax cuts would raise inflation and cause higher interest rates. The public on the other hand, praised these

Within seven years the wealthy had more money, but could also afford to give better pensions and pay raises. He reduced income tax from the top bracket 70% down to 28% spurring growth from the top on down and vice versa. This gave some people who lived in poverty a view that Reagan was indifferent to their struggles. This may have seemed the case but growth did happen, and hopefully those critics found jobs; however, driving to those jobs still pinched the pocket book a bit due to the energy crisis at that time.

He was named the “teflon president” because no bad image could stick to him and was often said to be cheerfully ignorant of domestic and foreign policy. Reagan articulated foreign policy in terms of good and bad. Good were America and its allies, as well as the “freedom fighters” in Latin America and Afghanistan. Bad were the Communists (except China) and terrorists. The introduction of Reaganomics brought many new ideas into circulation. Reagan promised to stimulate production, reduce inflation, cut taxes, and balance federal budget. He claimed that targeting corporate producers and giving them incentives would flood the market with consumer

Reaganomics refers to economic policies implemented during President Reagan’s administration from 1981-1989. The main ideology of Reaganomics was conservation which promoted that “government is the problem, not solution”. That means, society and market would function better with limited government power and regulations. Accordingly, Social wealth was distributed by unrestricted market, and profits that capitalists earned would trickle down to the bottom of society. In this way, people were in charge of improving their lives instead of relying on the aid of government. In order to recover from the economic crisis occurred between 1981and1982, the major Reaganomics objectives was to reduce government intervention in business and social aids. The policies were specified as marginal tax cut, tightening money supply, reducing social welfare programs and regulations. Generally, Reaganomics that impact citizens the most would be tax cut, reducing welfares and regulations.

The constant conflict between left-wing ideologies and right-wing ideologies has created many differing opinions of who should be in control of the economic systems within a society. These differing opinions have created many new ideologies that all have the common goal of creating an ideal economic system in which each individual can benefit. It is evident that throughout these sources lies a common theme of how the economy within a society, specifically America, should be operated. The first source is stated by Ronald Reagan, the 40th president of the United Stated of America, who was the founder of Reaganomics and is a supporter of trickle-down economics and neo-conservatism. Within his quote he states how government, as a whole, has a common