Government over regulation severely handicaps businesses from growth and prosperity. By Reagan's philosophy of tax cuts and a free market approach, business grows, more people are employed, and consequently, more money is in circulation along with increased production. A fallacy oftentimes used when examining Reaganomics is the increase in federal debt, but what is oftentimes neglected is that Reagan drastically increased military spending in order to bankrupt the Soviet Union and escape the Cold War, which had been viciously raging since the end of WWII. Reagan's economic policy also discourages welfare spending, so if one does not have a valid reason to receive funding from the government, their benefits are significantly less than his predecessors had delegated.
The free market must be left to function. The less tax and government regulation the better. Some regulation is good to maintain safe, healthy work environments and such.
Higher taxes are a damper on growth no matter which way you look at it. More taxes are less money you have to spend. The problem is the government can't really afford to cut taxes, even though it would stimulate growth.
Reaganomics is very effective because it brought us out of a depression. When Reagan was in office, unemployment was at 10% and interest rates were at 21%. When Reagan left office, unemployment was around 3% and interest rates significantly dropped. The only bad thing was that he didn't cut spending due to the increase in military. The increase was needed though to stop the cold war.
Reaganomics is good. President Ronald Regan's economic policies during the 1980's, which were referred to as "Reagonomics" focused on supply side economics, reducing government spending, reducing the income tax, and reducing the capital gains tax. Reagan's economic policies are still widely used today and are referred to as free market economics, or Trickle-down economics.
I think that Reaganomics is a great view on economic policy. It makes people be self-reliant and motivates people to work hard to earn their money. When the government does not interfere with the economy, it is run by the people. When it is run by the people, that is when it is the strongest.
Regan's principles of reducing government spending and reducing taxes in general has lead to a great boom in the US economy after these policies were implemented, I think when you take away the Governmental influence in the economy and give the power back to business it leads to a much more efficient and well run economy.
Big business thrive in this policy, but what about the other groups. It is a fact that the rich do not spend enough of their own wealth into circulation. This shows that the trickle down method does not work as the money is not "trickling down" to the middle and lower class as the rich people are just saving their money (mostly). Though it is true that people would become motivated to work harder independently, big business can just wipe them off the floor and steal everything in the business. Reaganomics is too much of an extreme view in economics.
Reaganomics is the concepts and economic policies pushed by President Ronald Reagan in the '80s and still practiced today. The main ideas of Reaganomics is to reduce the growth of government spending, to reduce the federal income tax and capital gains tax, to reduce government regulations, and to tighten the money supply to control inflation. While this policy is good for big business and the rich; it does nothing for the average working person.