Reaganomics and Its Effect on Minority Groups

Ronald Reagan, President of the United States from 1981 through 1989, created economic policies throughout his presidency that aimed to pull the United States out of a recession. His policies, called Reaganomics, reduced government spending and reduced tax rates in order to foster economic growth. Reagan also appointed many conservative judges to the Supreme Court and federal courts in order to shift ideologies to the right. Because of this, Reagan was both underrated and overrated as a president.

Starting during the 1970s, factions of American conservatives slowly came together to form a new and more radical dissenting conservative movement, the New Right. The New Right was just as radical as its liberal opposite, with agendas to increase government involvement beyond the established conservative view of government’s role. Although New Right politicians made admirable advances to dissemble New Deal economic policies, the movement as a whole counters conservativism and the ideologies that America was founded on. Although the New Right adopts conservative economic ideologies, its social agenda weakened the conservative movement by focusing public attention to social and cultural issues that have no place within the established Old

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).

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).

Politics in the U.S. during the 1980’s were exciting. Much like everything else during this decade, politics were changing and making a new way for economic development and social construct. Policy in the 1980’s were both huge on foreign policy, and domestic development. The cold war, being the main concern with foreign policy, consisted of Communism versus Democracy, or Socialism versus Capitalism. President Reagan being the face of America and our Commander and Chief, created “Reaganomics,” which fought for small Government, and utilized Government spending in a way that would effectively establish National Security as well as make a name for himself as being known as one of the most popular presidents in United State’s history. Though these issues took place some thirty years ago, it is safe to say that the tribulations we faced as a nation in the eighties have directly affected society in 2015.

President Reagan’s radical tax cuts lead to a decrease in unemployment and an increase in incomes for Americans of all statuses. Despite the fact that, “in the late 1970s, the US economy was experiencing what was then the greatest economic crisis since the great depression… almost every economic measure substantially improved after Reagan’s reforms took effect” (Hannaford). Editors Pat Hannaford and Darcy Allen observe that, “by reducing America’s tax burden, Reagan’s

Reaganomics—also known as supply-side and trickle-down economics—is an economic policy practiced by presidents Warren G. Harding, Calvin Coolidge, and Herbert Hoover in the twenties and most recently, by the fortieth president of the United States, Ronald Reagan. Just like the state of the economy before Reagan stepped into office, the economy of the United States today is in a vulnerable place. The economy has taken multiple blows over the last few years: a recession in 2008, a close call in 2011, and an overwhelming deficit. Most Americans are looking for something to change. While some are advocating for an increase in the government’s power in order to step in and seemingly help the people, the way for the government to truly succor

Following his less-government intervention views, Reagan cut the budgets of non-military programs including Medicaid, food

Leading up to the year 1981, America had fallen into a period of “stagflation”, a portmanteau for ‘stagnant economy’ and ‘high inflation’. Characterized by high taxes, high unemployment, high interest rates, and low national spirit, America needed to look to something other than Keynesian economics to pull itself out of this low. During the election of 1980, Ronald Reagan’s campaign focused on a new stream of economic policy. His objective was to turn the economy into “a healthy, vigorous, growing economy [which would provide] equal opportunities for all Americans, with no barriers born of bigotry or discrimination.” Reagan’s policy, later known as ‘Reaganomics’, entailed a four-point plan which cut taxes, reduced government spending,

(Rogers 407) Since 2012 more African Americans are attending college to work toward a higher education to at least help them out of poverty. There is also an increase in older college students in their late thirties to fifties that also returned to school for a higher education. (Ebony Magazine, 2012. Women of African American seem to have a much harder time, than other race of people, in poverty and are even harder for them in older age. “The term triple jeopardy has been used to describe “female ethnic-minority elderly.” Members of this particular group face discrimination in three ways-being a women, elderly, and a member of an ethnic minority group-putting them even more at risk for poverty than other adults”.(Rogers 407). People who live in poverty often have other problems such as stress, prolonged illness and disability, reduced access to health care, poor living conditions and malnutrition problems. The formal support system for African Americans who experience living in poverty can get help from: Tax Credits (Snap), subsidies programs – Section 8 program, Habitat for Humanity’s and free school lunches for children. The problem with some of these programs is that many people do not qualify for these services even as they struggle with poverty. Some ways of helping themselves is to help at home and lower the electric and gas bills by turning off lights when not needed. When taking shorter baths,

Reagan led the move to cut government spending in 1981 by cutting more than $25 billion from welfare programs with another $20 billion to be implemented in 1982 and 1983.

African Americans have come a long way in the last few decades. We have more rights, more opportunities to grow and prosper and more independence than ever before. But the same cannot be said for African American families as a whole. The African American family and community is in trouble (Tilove, 2005). These families are facing many issues today that are contributing to their break down. These factors include poverty, diminishing health, welfare, incarceration, the struggle to find housing and the challenges involved with providing children with higher education. The disintegration of families have gone on for too long and it’s time we do something about it (“Current Challenges”, n.d.).

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.