Reagannomics Essay

Reagannomics refers to the economic policies of President Ronald Reagan during his two-term presidency from 1981-1989. These policies are often a topic of debate among economists and politicians alike. For starters, it closely resembles trickle-down economics, which is a widely controversial economic theory. It suggests that giving tax breaks or other economic benefits to the richest people or businesses will encourage them to reinvest the money in the economy, resulting in job creation and economic growth that will eventually "trickle down" to benefit everyone in society. While Reagan’s policies were consistent with trickle-down economics, he never used the term. The phrase is highly politized and which is part of the reason he never used

The corporations that were being taxed and regulated less would become bigger corporations. The bigger you are, the more money you are spending and the more people you are employing, with more money being circulated and more people with jobs stimulating growth. This is consistent with trickle-down economics. Reaganomics included major cuts to government spending as well. Reagan's administration aimed to cut spending in areas like social welfare because they thought that it was crowding out private investment and impeding economic growth. They cut spending on programs such as Medicaid, food stamps, and welfare. They also cut spending on education and agriculture. While Reagan increased defense spending, he attempted to decrease wasteful spending and wanted to make sure that the money was being used in smart ways. Finally, lowering inflation is considered one of the major achievements of Reaganomics. Reducing overall government spending and supporting slower money growth helped to reduce inflation while also spurring some negatives. The president's policies have remained a contentious topic of

Reaganomics' detractors contend that despite the fact that they caused the federal deficit to double, the massive tax cuts were a gift to Reagan's political base among the wealthy. Ronald Reagan served two years as President of the United States. Reaganomics helped to create a $1 trillion federal deficit and over 20 million new jobs. Others contend that Reagan's policies have been amply vindicated over time by our increasingly prosperous society, while some economists claim that Reagan's policies were eventually a failure that should never be repeated. Regardless of viewpoint, the impacts of Reaganomics persisted long after his administration. Ronald Reagan himself once remarked, "The best sign that our economic program is working is that they don't call it Reaganomics anymore.” Although there are clear criticisms and disadvantages to the economic approach of Reaganomics, the positive long and short-term effects outweigh the negatives. Reaganomics brought thoughtful policies into effect that positively affected the United States economy; the main ones include tax cuts, reducing government spending, and implementing measures to reduce