What Was The Impact Of Ronald Reaganomics

During the campaign of 1980, Ronald Reagan announced a formula to fix the nation’s economy. He claimed an inordinate tax burden, intemperate government regulation, and huge social spending programs hindered growth. Reagan proposed a 30 percent tax cut for the first three years of his term in office. The bulk cut would be directed towards the upper income levels. The economic theory was called supply-side of trickle-down economics.

Reaganomics, also known as supply-side economics or trickle-down economics, was an economic policy implemented by Ronald Reagan during his presidency from 1981 to 1989. It is important to look at the outcomes of these policies objectively and consider their long-term consequences. Reaganomics included a set of policies that aimed to boost economic growth and reduce government intervention. The main principles were tax cuts, deregulation, and reduced government spending. Supporters believed that these measures would encourage private sector investments, increase productivity, and lead to widespread prosperity.

During Reagan turn in Presidency he concentrated on foreign policy and the economy. He believed that America’s power was constrained by the government’s extreme regulations. Originally, Reagan had campaigned on restoring prosperity, on cutting intrusive government, and on strengthening American values. Reagan highlight was a formula called supply-side economics. His vision was to keep interest rates high to fight inflation, thus promoting economic growth, and to reduce the support for some social programs by removing some government regulations.

The Republican Party was at its nadir after Watergate, but Reagan was able to form a winning coalition of fiscal conservatives, family-values voters, blue-collar Reagan Democrats and neo-conservative intellectuals and set the stage for future GOP electoral gains. His free-market, small-government, pro-liberty conservatism helped to revitalize the GOP and his influence resonates today as conservative candidates still invoke Reagan as their standard-bearer. The military was abated during the Carter years, but Reagan reversed it by rebuilding the armed forces. He revived the B-1 bomber that Carter canceled, starting production of the MX missile, and pushing NATO to deploy Pershing missiles in West Germany. Also, he increased defense spending by more than 40%, increased troop levels, and even got much-needed space parts into the pipeline, which ensured that America remained a military superpower.

Ronald Reagan's economic policies proved controversial during his eight year tenure as U.S President (1981-89). Current economic historians still rigorously debate the rationale and impact of Reaganomics. Reagan inherited a struggling economy and embarked upon radical solutions to turn around American economic decline. Important measures included a reduction in business regulation and increased government control of monetary funds in order to control inflation. Although Reagan’s economic policy resulted in short-term success, which included the lowering of inflation and unemployment, his decisions to reduce income tax for the wealthy and government spending on social programmes, while increasing defense expenditures, polarized American public

The United States of America is known to be the land of opportunity, and many presidents tried different kind of methods to change the US economy to the better. The Reganomics policy which is a policy by president Regan on how to change the course of the US economy. The Reganomics had good policies that made sense like reducing the growth of government spending which was a good point in order for the government to save its money. Reduce the marginal tax rates on income from both labor and capital which could help them pay less tax, and also reduce regulation which could benefit the people of the US, and also reduce inflation by controlling the growth of the money supply. This is an important fact because the growth of the money supply is very important.

Inflation dropped from thirteen point five percent in 1980 to four point one percent by 1988 (Reagan Foundation). Poverty rate declined every year from 1984 to 1989, meaning it dropped by one sixth from its peak. Former President Jimmy Carter did not have such a success in these areas (Fact Real). Carter’s interest rates were at nineteen percent, inflation was at thirteen point five percent, and unemployment was over seven percent.

The biggest divide in wealth of the nation was also seen since World War 2. Reaganomics was the cause of this, which was the thought to cut taxes and put the money back to the spender, where they would put into the economy. This was a more free market approach than before. From the beginning of the Reagan presidency, the debt was at 997$ billion dollars, and at the end of his 8 years, the deficit was at 2.85 trillion. However, Reagan still had people tricked because of the way he was able to talk to his listeners and how he was a loved actor and man, but his economics was not.

On top of it all, the United States was defeated in 1975 in the Vietnam War that lasted fifteen years and lost more than 50,000 lives seemingly for nothing (Mindtap, Cold War Crises, 12.3). By the end of the 1970s, the extreme disappointment with American life had opened up the opportunity for a life changing moment in American history. Americans were ready to try something radically different from Roosevelt’s New Deal Order in the 1930’s, which structured politics up to that point in time, that seem to have failed. This as well as the personal charisma Reagan had helped as he talked of a promising ideology vision to fundamentally change American politics. He led a time of conservative domination of American politics and society that would last for decades to come.

The 1980 Presidential Campaign was between Ronald Reagan and President Jimmy Carter. In this campaign several key issues were discussed. Reagan provided solutions for the armed forces, the Nuclear Arms Race, terrorism, the nation's economy, and urban policies. He used several tactics to wage a successful campaign. By appealing to Republican values, Reagan received the votes of many heartfelt Americans and is still admired by many to this day.

President Reagan’s began his presidency with the understanding that there were growing concerns felt by the American people concerning the events that were taking place within our nation (Schultz, 2013). Also, he realized that family values and a free market were probably the two areas that were most important to the citizens. He started his presidential legacy by cutting taxes, decreasing funds for social programs and by increasing military resources. His thoughts were that by cutting taxes that the government 's revenue would increase, thus, ensuring they could pay their debt instead of the taxpayers. Although, the changes in military funding and social programs led to a drastic increase in the nation 's debt that even

An example of the new views of Reagan’s about the economy is shown in how during the 1980 primaries, “Reagan and Bush promised significant tax cuts, increased defense spending, a balanced budget…” (Schaaf). Without having gone through the events of the Great Depression, Reagan likely would not of had the same views of the importance of the American Economy which could have prevented him from succeeding in his political career for years to

He did this to reduce the money spent so that we would be able to benefit from it. Reagan did make a lot of changes that really helped the people better their money problems.

“I know in my heart that man is good. That what is right will always eventually triumph, and there’s purpose and worth to each and every life”. This quote was from President Ronald Wilson Reagan. Ronald Reagan’s leadership, determination, and love for America paved the way for future generations. The 444 day Iranian hostage crisis ended one day before Reagan entered office.

Unemployment rates began to increase. Over time, Reagan had increased taxes 11 times, mainly on the middle class. When Reagan had left office, he had tripled the national debt of United States. This had affected the United States and led to several issues later on. This is the reason Reaganomics had both aided some and destroyed others.