Regan Era Tax Cuts During The Great Depression

Though Reagan and Bush found tax cuts effective for the economy, the budget deficit continues to rise. As President Ronald Reagan takes office in 1981, he proposed tax cuts and reduced non-defense expenditures to increase military spending to Congress. Reagan believed that tax cuts would create more job opportunities for people and increase tax revenue in the long run. Lee et al. (2012) found “The tax cuts adopted in 1997, unlike those of 1981, were accompanied by offsetting expenditure reductions, so there was not as much of a reduction in federal revenue… therefore federal revenues did not increase” (Public Budgeting Systems, p. 74).

In the 1930’s, our economy took a major downturn when the stock market crashed on Black Tuesday in October of 1929, which affected many Americans in every aspect, including a rise in the unemployment rate. This resulted in farmers migrating from Oklahoma to California, as we see in The Grapes of Wrath when Tod Joad and his family take on this journey. Although the Great Depression lasted between 1929 and 1939, the people had hope in the restoration of the economy when Roosevelt came into office in 1933. He proposed the New Plan guaranteeing security in the economy. Unfortunately, it was not much help with the onset of the Dust Bowl during these tragic times.

He transformed a stagnant economy into an engine of opportunity.” The economy was struggling during Reagan's time of presidency. In 1989, the U.S. economy was the worst it had been for 3 ½ years with an annual growth rate of 0.5% for the fourth quarter. Reagan immediately acted on this when he was placed in office by slowing down government spending, reducing the federal income tax, and many more other actions that would give the economy a boost in the right direction. Thatcher brought this up in order to show Reagan's powerful initiative during times of drought whether it be economic, or any other form of dry spell that may affect his

On January 20, 1981, Ronald Reagan delivered his inaugural address following the economic decline and repercussions of the nation’s loss to Vietnam in the Vietnam War. In his address, Reagan covers the prominent topics of the nation, including rising inflation, unemployment, and several crises which were especially methods of encouragement and hope following the Vietnam War in an effort to appeal to the public. For Reagan to successfully inspire the Americans in this tough decade and earn their satisfaction through demands, he implemented a rhetorical device, literary element, and direction of presenting his administration. These contributions to his address strengthened his position with the American citizens and positively influenced how

One of Ronald Reagan's most famous statements "government is not a solution to our problem; government is the problem" is now the rallying call for right-wing extremism ("Limiting Government, 1980–2010", 2010). President Reagan believed in improving our failing economy and so he cut taxes across the board ("Limiting Government, 1980–2010", 2010). In fact, this was the largest tax cut ever seen in the U.S. history ("Limiting Government, 1980–2010", 2010). The American economy was hit hard with recession between 1979 and 1982. With the Reagan Administration hard work, the economy started to show some growth with an annual rate of 4.2% from 1982 and 1989 (Krugman, 2003).

Franklin Delano Roosevelt, took a hold of the position of President of the United States of America in 1933, right after the Great Depression started. Great Depression (1929-1939), was the biggest economic downfall in the history of United States. It led to the unemployment of 13 to 15 million people, setting the entire Wall Street to panic and failing nearly half of the banks of United States, closing thousands of businesses. President Roosevelt was the one who leaded United States during a time of worldwide economic depression and a total world war. Some historians and opponents of President Roosevelt argue that the New Deal introduced by him was just a political stunt to alter American traditional and was ineffective in its proposal to end

On February 6, 1911, in Tampico, Illinois, one of the best presidents of the United States was born. He was born into a family on the edge of poverty, but he made the most out of his childhood. He was well liked by his peers and was voted class president of his senior class. Reagan entered sports radio broadcasting after school and also made a career in acting. Much like himself, Reagan’s roles were usually pleasant characters (Britannica, 2014).

by reducing agriculture for the U.S., thus causing a decline in exports. The farmlands of Western and Central United States suffered greatly as a remarkably sturdy drought choked the soil of its water supply. Many farmers were forced to seek government assistance as they couldn’t afford to water their crops efficiently. In fact, by 1937, a reported 21% of rural families were receiving government aid (“The Great Depression.”). While the entire U.S. was affected by this widespread drought, farmlands on the Great Plains were affected the most as huge dust storms swept across the vast area.

The recession of 1982 when his first term began was a time when a large portion of Americans were unemployed, creating the need for Reagan to do something. Although high taxes and a great deal of government intervention from FDR was a solid way to get the United States out of the Great Depression, Reagan wanted to try the exact opposite. Reagan’s philosophy was simple: cut taxes to allow small businesses in particular to create more jobs, decrease the unemployment rate, and allow citizens to improve the economy by spending money (history.com). Fortunately for the United States, the unemployment rate slowly decreased, and was nearly cut in half before Reagan left office (bls.gov). Despite the recession during 1981, the economy turned around within a couple of years.

The wealth during the 1920s left Americans unprepared for the economic depression they would face in the 1930s. The Great Depression occurred because of overproduction by farmers and factories, consumption of goods decreased, uneven distribution of wealth, and overexpansion of credit. Hoover was president when the depression first began, and he maintained the government’s laissez-faire attitude in the economy. However, after the election of FDR in 1932, his many alphabet soup programs in his first one hundred days in office addressed the nation’s need for change.

J. Estrella Professor Robinson AMH-2020 27 November 2017 Thematic Review #2 Reaganomics Ronald Regan was born on February 6th 1911, he was an American Politician who became the 40th president of the united states in 1981. Ronald Reagan was a big influence on economic activity during the 80’s and 90’s of the 20th century his economic policy would create a prospering economy in the 90s. One of his most famous acts as president was signing the 1981 tax bill or known as the Economic Recovery Tax Act (ERTA). This act allowed a twenty-five percent cut in marginal taxes for people, which in theory would help the economy grow quicker through businesses and the people.

The agricultural economy was suffering from drought and falling food prices, and the banks had a overload of large loans that could not be liquidated. In the summer of 1929, America’s economy suffered a mild recession. Consumer spending plummeted and the number of unsold products increased, causing factories to slow production of the goods. As a result, stock prices rose so high that there was no way they could be justified by expected future earnings. By this time, people were performing bank runs, this meant that people were going to the banks and withdrawing all their money in fear of losing it when the banks shut down.

The 1930’s was a horrendous, dreadful time period that affected the whole world. The U.S got hit especially hard considering the country was very strong and prosperous the previous decade. Farmers that lived in the Panhandle of Oklahoma, Okies, were hit especially hard. The Okies were affected more than any other group in the U.S. during The Great Depression because not only did they suffer the economic problems of no money or jobs, but they also had to deal with dust storms and moving across the country. When the stock market crashed in 1929, the price of corn and wheat dropped so low, that it was no longer profitable to grow.

A major priority of Roosevelt’s long term solutions to the Great Depression was reform, to reform the financial and banking system. The economy began to collapse due to many factors such as the Wall Street Crash which had a major impact on banks becoming insolvent; large numbers of savers began to withdrawal their savings and deposits all at once due to the banks becoming bankrupted and unreliable as It was estimated that around 4000 banks failed during the year

2. Recession of 1973-1975 in USA: The economy had again started to grow post World War II. This recession had put all economic expansion to a halt. Being a stagflation (high unemployment, coupled with high inflation), it created an economic stagnation in much of western countries. The economy report of President of USA read-