Reaganomics

Reaganomics - Reaganomics A fix to the unemployment and...

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Reaganomics A fix to the unemployment and inflation of the time.
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ELECTING RONALD REAGAN…TWICE Ronald Reagan for Reagan/Bush '84 Ronald Reagan TV Ad: "Reaganomics" http://www.youtube.com/watch`?v=GhgiOSgBEYY Reagan won 525 electoral votes and 49/50 states leaving Mondale with his only state of Minnesota and 3800 votes. Reagan received 58.8% of the popular vote to Mondale’s 40.6%. (This was Reagan’s Second Term) (Wikipedia) (Youtube )
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Stagflation -time before Reagan’s Administration -Political pressure results in expansion of money supply. -Nixon's wage and price controls abandoned -Under Ford the problems continued, but policy was more prudent. -federal oil reserves created to ease future short term shocks -Carter started phasing out price controls on petroleum (Wikipedia )
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Stagflation -Much of credit for resolution of the stagflation is given to… …a three year contraction of the money supply by the Federal Reserve under Paul Volcker to long term easing of supply and pricing in oil during the 1980s oil glut ( Wikipedia )
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This Cartoon Shows the differences between Reaganomics and FDR’s economic policies like the New Deal.
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The Four Pillars Reagan+Economics=Reaganomi cs 1. reduce govt. spending 2. reduce marginal tax rates on income from labor and capital 3. reduce government regulation of the economy 4. control the money supply to reduce inflation R e d u c g o v r n m t S p i M a l T x s . f E y C $ (Wikipedia)
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The Roots -Reaganomics roots in two of Reagan's campaign promises: 1) lower taxes 2) a smaller government -reduced income tax rates with the largest rate reductions on the high incomes -in a time of battling inflation Reagan raised deficit spending to its highest level since World War II . (Reeves, 203) (Wikipedia)
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The Beginnings - lifted remaining domestic petroleum price and allocation controls on January 28 , 1981 - lowered Oil Windfall profits tax in August 1981, helping end the 1979 energy crisis - ended Oil Windfall profits tax in 1988 during 1980s oil glut - Tax Reform Act of 1986 , Reagan and Congress sought to broaden the tax base and reduce perceived tax favoritism (Reeves, 203)
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The Growing Economy - income tax rates dropped from 70% to 28% in 7 years - payroll taxes increased - Real Gross Domestic Product (GDP) growth recovered strongly after the 1982 recession at annual rate of 3.4% per year slightly lower than post- World War II average of 3.6% - Unemployment peaked over 10.7% percent in 1982 then dropped during rest Reagan's terms - inflation significantly decreased - job increase of 16 million occurred Nelson, 64.
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Trickle Down Affect - policies derided as " Trickle-down economics due to the significant cuts in the upper tax brackets - massive increase in Cold War related defense spending caused large budget deficits
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This note was uploaded on 11/23/2011 for the course HIST 202 taught by Professor Nokes during the Fall '11 term at BYU.

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Reaganomics - Reaganomics A fix to the unemployment and...

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