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Socio-Economic Effects Of Reaganomics

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To what extent did Reaganomics alleviate the socio economic burdens of Americans in the 1980s?
Reaganomics had a big effect on Americans and the government they depend on. Reaganomics was a policy put in place by Ronold Reagan in the 1980s that lowered taxes for all incomes. It started with the belief that the production would increase if taxes decreased. The way that the economy was affected by Reaganomics includes good changes like a change in production, new technology and a lowering in poverty rate, but it also caused things like U.S. debt, as well as unemployment and poverty in low income homes.
Reaganomics started in 1892 with the idea that if tax rates are lower more products will be produced. This belief stemmed from the idea that heavy tax causes a decrease in …show more content…

In a speech by Corretta Scott King he gives statistics on the matters of low income households. He states, “Despite repeated denials from the president himself, [Reagan] administration cuts have been targeted to families of moderate and low income. . . . Half of American families—those with incomes of less than $20,000 a year—have suffered 70 percent of President Reagan's budget cuts. . . . many Americans are no better off today than they were four years ago because Reagan's “unfair policies” have curtailed their freedom” (Scott King 1985). In Scott Kings’ speech he perfectly describes the negative effects of Reaganomics. The effect that it had on low income families was not the only consequence. The national debt increased by 188%, which is something that continues to affect the United States (ProCon.org 1981-2009). Though there was a change in American economics, the only ones that truly profited from Reaganomics were the rich. The people in low income homes were either negatively impacted or their quality of life stays the same. America now also holds 188% more debt than before, which is believed to never be able to be paid

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