Regan Era Tax Cuts During The Great Depression

Throughout the history of The United States the government has taken various actions to address the troubling circumstances with the nation’s economy. Two actions that addressed the nation’s ever so troubling economic crisis at the time include Regan Era Tax Cuts and President Franklin D. Roosevelt’s “New Deal”. These actions were proposed to society during two time periods where American citizens were facing an immense amount of strife and despair, the two plans offered hope and a plan of relief to the economy. The New Deal during “The Great Depression” and Regan Era Tax cuts which was during a terrible recession both provided a breath of fresh air during a time period where American’s and the economy were at an ultimate crisis and standstill

Due to the loss of their own capital in either the Stock Market Crash or bank closures, many businesses had to begin cutting back their workers' hours or wages and had to lay people off. As a result American citizens lost their jobs and money was scarce, families were starving, homes were being foreclosed on, and families lacked sufficient food and clothing due to the lack of goods. Unfortunately, during the Great Depression, the Great Plains also were hit hard with both a drought and terrible dust storms, creating what became known as the “Dust Bowl”, small farmers were hit especially as hard. While already in debt and struggling financially before the economic crisis farmers had to borrow money from banks for seeds and paid it back when their crops came in. When the dust storms damaged the crops, which meant farmers could not feed himself and his family, he also could not pay back his debt to the government and banks. Big banks would then foreclose on the small farms and the farmer's family would be both homeless and unemployed. The entire nation was broken down in shambles with barely any hope of recovery.

In 1933, President Franklin D. Roosevelt was inaugurated and Americans felt relief that he would repair the doomed economy and create jobs once again. As soon as Roosevelt took office, he closed all the banks and only let them reopen once they were stable. Next, Roosevelt began to establish

American’s enjoyed a pro-longed period of prosperity from World War II until the late 1960’s, which was built largely upon the power of American industrial production had run out of steam by the 1970s. The influx of spending on the Vietnam War also contributed to this demise of revenue. The economy began to become less and less powerful and adopted a new multitude of challenges which led the economy to go into a recession. A recession is a period of temporary economic decline during which trade and industrial activity are reduced. However, Ronald Reagan announced a recipe to attempt to fix the nation's economic troubles. Regan put the blame on an undue tax burden, excessive government regulation, and massive spending on social welfare programs were the main issues which hindered the growth of American economy. Reagan proposed a 30% tax cut for the first three years of his Presidency. The majority of the tax cut was concentrated towards the upper middle class in