Obviously, Reagonomics polices efficiently improved USA economy growth in 1980s. Due to his positive fiscal and monetary policies, American successfully escaped from the predictable recession. For fiscal policies, Reagon cut down the federal government budget and simultaneously decreased the income tax rate, Which effectively decreased the unemployment rate in the society so that real family income experienced a significant increase. In terms of the monetary policies, Reagon limited the supply of currency and promoted the domestic demand at the same time. In this case, Inflation in the society were under well-controlled. Even though those polices brought some potential risks in the future, We believe that Reagonomics is the best way American can choose at that time.
Supply side economics generates economic growth through its three piller system, While some on the Con argue this only helps rich corperations, That is wrong. As seen in the evidence below Reganomics helps all.
Jeffrey Dorfman from Forbes magazine on Dec 22, 2017 writes, Economic growth creates jobs. Economic growth provides families with income and savings, That help them pay for education for their children. Economic growth provides financial stability. Economic growth and gives workers more power. All these things increase financial security and family stability.
This stability really benefits lower classes. While the upper classes mostly live in a state of comfort and stability, That is not the case for all. Scott Winship at the Washington post on August 16, 2016 writes that “In truth, Nothing helps the poor and middle class like economic growth. ”
Not only do individuals benefit, But the nation as a whole is improved. There is no better example of economic success and recovery than Reagan’s economic policies. Stephen Moore and Arthur B. Laffer, Ph. D. Write in their bestselling economics textbook, Trumponomics, The U. S. Was unquestionably the winner in the race for higher capital. America soaked up some 4 trillion in capital investment from around the world. Smart money got packed in America, And the net worth of the nation exploded from 18 trillion in 1982 to 60 trillion in 2000.
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Reagan’s economic policies led to the greatest period of economic expansion in U. S. History and ended the period of stagflation brought about by two decades of liberal economic policies. First, Reagan understood that to reduce the rate of inflation the money supply had to be shrunk and domestic government deficit spending as a percentage of gdp had to be reduced. He was successful in achieving both, As the Fed sold treasuries in the open market and domestic spending was cut. He improved relations with the Middle East whose global oil embargoes affected prices of all U. S. Commodities. As a result, The inflation rate was more than cut in half by 1983. Reagan also ambitiously cut both corporate and income taxes drastically during his tenure, Leading to job creation and greater economic output. He cut burdensome regulations on businesses allowing them to compete in a fair business environment and lifted price controls, Thereby ending shortages. Under Reagan unemployment fell from 10. 8% in 1982 to 5. 4% in 1989. Moreover, The percentage of working age Americans participating in the labor force grew during his eight years as president.
It lowered unemployment, and made people use the money so the economy & money flowed. Also, the free market made soviet union die.
Also, if there is lower taxes, than more people make a business.Than, the government can get more, more, more and more taxes than ever.
Viva la Reagan!!!!
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.
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.