Ronald Reagan's Economy

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.

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).

Although he was a generally controversial president, Ronald Reagan’s policy decisions to stimulate economic prosperity, known as Reaganomics, were legitimately beneficial to the United States of America. First, in order to substantiate the success of Reagan’s economic policy decisions one must first grasp the varying levels of importance for each aspect of his plan. As Reagan’s policies were substantial decisions that defined his presidency and alienated an entire population of more economically liberal people, it makes sense that an understanding of his emphasis on certain decisions would lead to a more persuasive argument. Next, the negation of well formed and logical criticisms of Reagan’s economic policies also lend to the support of their benefits and success. Acknowledging a sensible counterargument and addressing specific points of critical analysis serves to further enhance the argument for the success of Reagan’s decisions. Furthermore, strong economic growth and the curbing of federal domestic power reinforce the accomplishments of Reaganomics. Though the U.S. did see economic growth, Reaganomics was not purely an economic plan, as cuts in government power, not including the military, benefitted the average American citizen. Moreover, Ronald Reagan’s economic decisions regarding Soviet foreign policy were also extremely beneficial to the United States. The tough decisions to further the national deficit proved a worthy sacrifice in pressuring the collapse

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

Reagan increased defense spending. U.S. exports were falling, creating a negative balance of trade where the country was buying more from foreign countries than it was selling to them.

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.

President Ronald Reagan, the man who is accredited with ended the forty six year cold war was elected on Nov. 4, 1980. Reagan won his election with fifty percent of the popular vote over former President Jimmy Carter who had forty one percent. While Reagan as a president is praised for such successes as strengthening the national defense, stimulating growth in the U.S. economically, and as mentioned before he is considered the President who ended the Cold War. President Reagan had achieved many things by the end of his administration, but just as he had many successes his presidency was plagued with shortcomings and a handful of what could be considered flat out failures. The purpose of this writing is to establish and identify the ‘cons’ or failures of the Reagan administration, and provide a brief description of each different aspect of the administration.

Reagan revolution has developed over time and it continues to resonate today. Reagan inherited an economy that was ailing and characterized by high unemployment rate, budget deficits, and a small trade surplus. Reagan engaged in major tax cuts and also increased armament-spending factors that contributed to the turnaround of America’s economic situation. This turnaround significantly contributed to the current shape of the economy. However, Reagan’s economic policies of tax cuts, monetarism, retrenchment, and budget deficits have had several negative

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,

During Ronald Reagan’s rise to power, California was a hub of cultural change and ethnic diversity. Nevertheless, California embodied the American ideals of opportunity that proliferated during the era- the opportunity for prosperity and success and upward social mobility through hard work. The economic output of the “nation’s state” was spectacular, rivaling even some of the largest nations of the time, surpassed only by six other nations. (Governor Reagan) This unmatched economic dominance was the perfect location for the always optimistic and greater than life newcomer Ronald Reagan. Yet, this period of unrestrained growth proved extremely burdensome for California as taxes increased and agricultural lands were being destroyed to house the growing population. (A Modern Economy) By 1963, California became the most populous state, exceeding the size of New York, due in part to its influx in population growth following World War 2. (A Modern Economy) College groups protested for change and race riots swept the State. The social unrest of the time lent itself to the way Ronald Reagan was perceived (and ultimately accepted) when he stepped into the political arena. He was the great optimist, exhibiting bravery in the face of adversity. He was the ardent Republican who fought for the rights of the citizens and believed in the future. This persona however, just like California, was much more complex.

A change of pace back home started when President Reagan began his “reagenomics.” During both of his terms, Reagan presided over an ever-growing gap between the rich and the poor. He would decline wages and living standards for working families, an attack on labor unions as a way to lift Americans into the middle class, a dramatic increase in poverty and homelessness, and the merging and deregulation of the financial industry that led to the current mortgage meltdown, foreclosure problems and haunting recession. Inevitable social and economic forces did not cause these trends. They resulted from Reagan’s policy and political choices based on an underlying ideology.

Prior to Reagan’s inauguration the country was suffering from double-digit inflation, high interest rates, high unemployment, oil shortages, and

What he was trying to convey were his memories of living Ludlow in New York an artist and musician oasis in the middle of overpriced New York City. As the song goes on he touches on the people that lived there throughout the history of the neighbourhood. He also realizes in the song that the bands that inhabit the area pushed out previous occupants. Now my family and I find ourselves in that same situation as we attempt to buy our first house. We are pulling up stakes and settling in one of the outer neighborhoods of Portland and driving out its inhabitants and pricing out those left. This is the ripple effect of gentrification. Ronald Regan would have proudly deemed a successful example of trickle-down economics.