Was Ronald Reagan's Economic Policies Successful Or Not?

Mitchel Mcgarry

Ms. Hickey

English 101- essay 3

2 December 2017 In 1980 Ronald Reagan won the presidency of the United States. During this time there was a lot of controversy about Reagan becoming president he was still viewed as and actor rather than a politician. The 2016 elections echo the same feeling as in 1980 the people aren’t sure but as always, the worst is always expected. One thing that can be reviewed and the question at hand is, after 8 years as President of the United States were Ronald Reagan’s economic policies successful or not? Ronald Reagan was inaugurated on January 20, 1981 and with this he stepped into a position that could solve massive economic problems that had plagued the country for nearly 20 years. The problems

The new law helped support "idea-based" industries such as software and financial services. It lowered corporate tax rates for those companies while cutting or eliminating provisions in the tax code, such as the investment tax credit, that had primarily benefited old-line industries like utilities and railroads. The effect on corporate tax bills was immediate: Oracle Corp.'s average tax rate fell from 44% in 1986 to 32% once the law took effect. Microsoft's taxes saw a similar decline” (Mandel). So as mentioned by Michael Mandel Ronald Reagan took the idea of investing in ideas to a new height. This is believed to have kicked off the 90’s tech boom and created a United States championship of leading the world in technology. On top of helping the tech area of the economy, Reagan created a 92 month long economic growth boom from Nov. 1982 until July 1990. It was said by, “Milton Friedman, the Nobel prize-winning economist, Reagan's tax cuts -- especially the 1986 bill -- were "one of the most important factors in the boom of the 1990s”

With the new tax codes taking effect, the downside was starting to be felt. “Reaganomics, as critics dubbed the administration’s policies, initially produced the most severe recession since the 1930’s” (Foner). A double-edged sword of Reagan investing in technology is the fact that companies were taking advantage of satellite technology and shifting jobs to other countries. Also, the tax breaks that were set in motion in 1981 fell short of breaking even with taxable spending by 20 billion dollars. In 1982 the federal deficit rose to 110.7 billion dollars and as a result many more cut to government and short-term tax hikes caused a recession and highest unemployment rate since 1941.

What can be said in total about the Economic Recovery Act also known as the Kemp-Roth Act (1981) and The Tax Act (1986) effectively known as “Reaganomics,” it shook up the establishment in Washington D.C. Under the new tax codes consumer prices fell sharply meaning everyday products were more affordable, the poverty rate fell, and the stock market grew 6 percent. In the opinion of some economists Reagan’s policies helped to bring the second largest peacetime economic expansion in the history of the United