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Reagan's Economic Policy

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In 1981 President Jimmy Carter left America in an inevitable hole that the country needed to get out of. The country was left with high inflation, unemployment and a major energy crisis. America needed a big clean up. The presidency of Reagan, Bush, and Clinton came in to change the mess that they were left with. All three men had their own way doing things that would help America. But it would not be easy to be behind the desk in the oval office. Apart from the annual Easter Egg Rolls and the annual correspondent’s dinner their time in the office would be filled with meticulous decisions that would affect the world, foreign and domestic policies and scandals. Ronald Reagan was the 40th president of the United States and acted as president…show more content…
Reagan’s “supply- slide” theory included two main things: a major tax cut and economic growth. The cuts on taxes would be responsible for a decrease in taxes on the topic of national debt. The Economic Recovery Tax Act of 1981, the bill represented a significant change in the course of federal income tax policy. The act included a 25 percent reduction in marginal tax rates for people. These tax cuts were designed to create an increase of capital in the of the entrepreneurship economy. The rise of computer companies which include Dell, Sun Microsystem, and Intel boasted because of this tax cuts. The tax act had a 30 percent reduction. The new approach to the economy lead posthaste into a homerun for the American people. Reagan was set on an idea to lower taxes and that is what he did. In 1982 he convinced congress to lower the top tax rate from 70% to 50%. Although in 1986 congress went furthermore in adding the tax reform act – this act lowered top income tax rate to 28%. Reagan had the idea that lowered taxes would be the best way to encourage economic growth, in doing do so, supply-slide would intend high interest rates would combat inflation accompanied with cutting taxes, especially for the wealthy, would embolden the wealthy to spend money again which would eventually lead to the creation for many new jobs as during this time unemployment rate was very
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