100%(1)1 out of 1 people found this document helpful
This preview shows page 1 - 3 out of 5 pages.
Kripa Mathew Ronald Reagan was the 40th president of the United States. He served as president from 1981 to 1989. He was a significant American president that had many accomplishments as well as some failures. His platform which stressed key principles such as lower taxes, reduced government regulation, states’ rights, and strong military resulted in majority win. The terms he served were known as the “Reagan Revolution” for he not only boosted American morale but enabled economic growth and established the United States as a global superpower. Reagan developed Reaganomics, played a crucial role in ending the Cold War, created other foreign policies and was involved in the Iran-Iraq War, and was influential in social policies as well. Throughout both term, Reagan had many accomplishments and is still considered a great president. As president, Ronald Reagan had various accomplishments, particularly the development of Reaganomics. Reaganomics were supply-side economic policies created in order to increase economic growth. Reagan’s goal was to reduce government spending, lower taxes, limited government regulation, and control inflation. He signed the bipartisan Economic Recovery Tax Act of 1981 for he believed tax cuts would result in an incentive to work opposed to increased demand. With this act, marginal tax rates were reduced by 25 percent. The top marginal individual income tax rate fell from 70.1% to 28.4%. The corporate income tax rate was reduced from 48% to 34%. Most of the poor didn’t have to pay individual income tax. The tax reform of 1986 helped to limit government by lowering rates and getting rid of tax loopholes. The inflation-adjusted rate of growth in federal spending fell from 4% to 2.5%. He borrowed money to cover the federal budget deficits in an attempt to reduce inflation. The misery index which is the sum of the inflation rate and unemployment rate significantly decreased from 19.99% to 9.72%. 16 million new jobs were created. These economic policies were considered a success to some extent but Reagan did fail in some aspects. Although he sought out to reduce
Kripa Mathew government spending, it instead increased 2.5% annually thus more than doubling the national debt from $997 billion to $2.85 trillion. Additionally, his policies resulted in a net increase in