Reagan’s Economics

Reagan’s Economics - The rich not only...

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President Regan’s conservative politics stimulated the economy greatly for the United States, during and for many years after he was on office. There were three major points of his conservative policies. He wanted to cut taxes, increase defense spending, and to decrease spending in social programs. These conservative policies became known as Reaganomics. President Reagan had promised that if he was elected into office her would cut taxes. This was a huge motivator for the people, who already felt that they were giving more than what was needed. His election gave him the power of a charismatic mandate. Many democrats voted more conservative, and became known as Reagan Democrats. They became an important part of his policies that were approved. The philosophy was if the government would cut taxes on the upper class (rich people) that they would hire more people. This would not only create jobs, but also would stimulate the economy because people could afford to spend money again.
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Unformatted text preview: The rich not only enjoyed the privileges that came with the tax reduction, but almost everybody did. Businesses expanded and money pockets were filled and filled again. People starting to buy more, as their spendable income increased. These tax cuts and way of thinking not only gave the economy then the boost it needed, but trickled down for twenty years. In the 80s one of his policies gave economic prosperity. He increased military spending. This led to bankrupting the Soviets, but it also made a lot of jobs here in the United States. More jobs leads to more spending, and that helped the economy, and the government social programs did not have to put out so much money that it would add to the deficit. President Reagans politics greatly helped Americas economy. Between the tax cuts, increased military spending, and cutting the money flow into the social programs he was able to boost the economy....
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This note was uploaded on 04/23/2011 for the course AED 201 - 204 taught by Professor Ever during the Spring '11 term at University of Phoenix.

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