How Did Ronald Reagan Influence The Economy

Ronald Wilson Reagan was born on February 6, 1911 in Tampico, Illinois. He had one brother named Neil and they were raised by a Protestant Christian mother. His father was Roman Catholic. Reagan credits his mother for his faith and helping him see the good in people. Before high school, the family moved to the town of Dixon, Illinois where he went to high school. Reagan became interested in acting and sports. He went on to attend Eureka College, which was founded by the Christian Church. While at Eureka College, he pursued a degree in Economics and Sociology. Reagan joined a fraternity and cheerleader. Also, he was on the football team, swim team and was student body president. In 1932, Reagan went to Iowa, where he worked as a radio

He inherited an economy of double-digit inflation. To try and combat the recession, he cut taxes from 70% to 28% as well as cut the corporate tax rate from 48% to 34%. He wanted to slow government spending and encouraged the federal reserve to beat inflation by lowering the money supply. The growth domestic product was spurred for the next few years and the economy grew. The growth in the economy lowered the unemployment rate. In 1982, the minimum wage rate was $3.35 an hour and Congress passed the Job Training Act for people with low incomes. It made the unemployment rate rise. Each time Reagan cut the tax rate, the unemployment rate fell. Reagan’s economic policies are called Reaganomics which bases on the theory of supply side economics. The increased revenue from a stronger economy is supposed to offset the tax cut loss. Reagan continued the Nixon era price controls that choked the free-market. He deregulated banking and Congress passed and act to remove restrictions on savings and loan banks loan ratios. It is said that Reagan’s deregulation and budget cuts caused the 1989 savings and loan crisis. Reagan did not reduce government spending and increased defense spending to have “peace through strength”. Also, he expanded Medicare and increased the payroll tax to help Social Security stay

Well, Ronald Reagan was a big factor in helping end the cold war by the decisions he made that also led to the collapse of the Soviet Union. Reagan said the cold war ends when the U.S. wins and they lose. He bulked up the U.S military and made a strong presence to the Soviets. He said, “If you try to use your superiority to intimidate us, we are going to kick your ass. Reagan is credited with helping bring down the Berlin wall which re-united east and west Germany. Communism reign was defeated. He became close to Soviet President Mikhail Gorbachev, but not before he implemented his tactics for victory. Reagan said the United States would “neutralize” Soviet control over Europe and authorized any means to back up anti-Soviet groups. He planned to disrupt the Soviet economy by attacking their resources through financial means, technology, and natural gas. America intended to stop Soviet influence in every area possible. When Gorbachev took over, Reagan forced him to back down and realize the Soviets could not win the arms race especially after Reagan released the Strategic Defense Initiative. Reagan challenged Gorbachev and is remembered saying “Mr. Gorbachev, tear down this wall”! A year or so later, the Berlin wall came down. He built a relationship with Gorbachev that had not happened before. It led to many nuclear weapons reduction treaties. Eventually, it sets the stage for the end of the Soviet Union