Ronald Reaganomics Essay

“Government is not the solution to our problem. Government is the problem” (Ronald Reagan). Reagan’s presidential campaign was largely geared toward this theory; balancing the government to fix the economy. In result to his many accomplishments as president, these wise words of his describe him as a politician perfectly. Today and in the 1980’s, many economic critics questioned the usefulness of his policies, which was also known by the name “Reaganomics.” His actions brought about a notorious name for the GOP, and made himself one of the most important presidents in history. At the beginning of his presidency, experiencing the bleakest economic state since the Great Depression, Ronald Reagan triumphantly got the economy back on track

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. In comparison, Reagan had more to brag about with his numbers. Such as interest rates that decreased to eight percent, inflation dropped to an impressive four percent, and unemployment fell to five point three percent. The misery index, which counts only the inflation plus unemployment rates, came to a total of twenty for Carter and nine for Reagan (The Rich, the Poor, and Reaganomics, par.

In 1984, real economic growth boomed by six point eight percent, the highest in fifty years (Fact Real). President Reagan had earned a degree in Economics, which obviously was useful because he knew what needed to be done and how to do it. He came into office with a simple but exact plan that he frequently spoke of during his campaign; cut taxes, get control of government spending, and get the government out of the way so that the entrepreneurial spirit of the American people could be let loose (Reagan Foundation, par 2). However, on the issue whether the poor benefited more under him or Carter, and whether the rich paid a larger share of federal income taxes under him or Carter, and clearly it is in Reagan’s favor. The American people may come to appreciate his achievement even more than they did in the elections of 1984 and 1988 (The Rich, the Poor, and Reaganomics, par