When Ronald Reagan became the President of the United States of America, the recession was increasing drastically, but have you ever thought about what are the most well-known Reaganomics facts- are they good, bad, failed or successful? The four pillars of Reagan’s economic policy were to reduce the growth of government spending, reduce the federal income tax and capital gains tax, reduce government regulation, and tighten the money supply to reduce inflation.
Reaganomics is a popular term used to refer to the economic policies of Ronald Reagan, the 40th U.S. President. Reagan’s economic policies were established to turn around the situation as mentioned above. First of all, and probably the most important part of the policies, Reagan created significant tax cuts to encourage businesses to grow. Did Reaganomics improve the economy, and if they were in which way? The Reagan administration saw the longest peacetime expansion in history which is yet to be broken. Meanwhile, the economy increased by a third. That means the growth in the economy was the equivalent of joining West Germany’s economy to the country. What does the term Reaganomics mean? Reaganomics refers to the economic policies promoted by U.S. President Ronald Reagan during the 1980s. These systems are regularly associated with supply-side economics, referred to as trickle-down economics or voodoo economics by political opponents, and free-market economics by political advocates. In his 1980 campaign speeches, Reagan presented his economic programs as a return to the free enterprise principles, free market economy that had been in favor before the Great Depression and FDR’s New Deal policies. The job growth under the Reagan administration was an average of 2.1% per year, with unemployment averaging 7.5%. The unemployment equalized 6.4% under President Carter and 7.8% under President Ford. The contention of the proponents that the tax rate cuts would more than cover any increases in federal debt was determined by a theoretical taxation model ignoble on the elasticity of tax rates, known as the Laffer curve.
If you want to see what are the most well-known facts Reaganomics facts- are they good, bad, failed or successful, check Insider Monkey’s list of Reaganomics Facts: Good, Bad, Failed or Successful? and find out more about this interesting topic.