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How Did Ronald Reagan's Economic Policies Affect The Economy

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The Impact of Ronald Reagan’s Economic Policies on the American Economy President Ronald Reagan left a lasting impact on the American economy through his economic policies, or Reaganomics. These policies aimed to revitalize the economy, stimulate growth, and address key economic challenges. Through a combination of tax cuts, deregulation, and changes in monetary policy, Reagan sought to shape the American economy and aimed to bring about a huge and lasting impact. Reagan’s economic policies were successful in driving short-term economic expansion, but they also contributed to income inequality and a growing national debt. The tax cuts implemented under Reaganomics mainly benefited the rich and boosted the economy in the short-term. Reagan …show more content…

At the time, Congressmen Conyers argued in the house chambers that “The proposed tax cuts will primarily benefit the wealthiest individuals and corporations in this country. While the President (Ronald Reagan) argues that these tax cuts will stimulate economic growth, the reality is that they will exacerbate income inequality and favor the already affluent" (Conyers Jr). Conyer's take on the economy is critical of Reagan’s policies, asserting that the primary beneficiaries would be the wealthiest individuals and corporations. His argument, that these tax cuts could worsen income inequality and favor those who are already affluent, supports the notion that the extent of Reagan’s economic policies was not great and only reached the top earners in this country. Congressmen Conyer’s point was affirmed by the Congrerssional Budget Office that collected data that was found between 1980 and 1988. The share of after-tax income received by the top 1% of households increased from 8.5% to 12.3% during this time frame, indicating a concentration of income at the top. The majority of tax savings from Reagan's policies went to the top-income earners, while the middle-class and lower-income groups gained much less. The hoarding of wealth at the top hindered the economic gains of lower-income groups This disparity in the distribution of tax benefits raised calls into question the equity of Reagan’s tax policies and how it was strong enough to affect all earners in America

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