The New Conservatism and a New World Ord10

The New Conservatism and a New World Ord10 - tax-reform...

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The New Conservatism and a New World Order The Reagan Years The United States entered one of the longest periods of sustained economic growth  since World War II. Consumer spending increased in response to the federal tax cut.   The stock market climbed as it reflected the optimistic buying spree. Over a five-year  period following the start of the recovery, Gross National Product grew at an annual rate  of 4.2 percent. The annual inflation rate remained between 3 and 5 percent from 1983 to  1987, except in 1986 when it fell to just under 2 percent, the lowest level in decades. The  nation's GNP grew substantially during the 1980s; from 1982 to 1987, its economy  created more than 13 million new jobs. Steadfast in his commitment to lower taxes, Reagan signed the most sweeping federal 
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Unformatted text preview: tax-reform measure in 75 years during his second term. This measure, which had widespread Democratic as well as Republican support, lowered income tax rates, simplified tax brackets, and closed loopholes. However, a significant percentage of this growth was based on deficit spending. Moreover, the national debt, far from being stabilized by strong economic growth, nearly tripled. Much of the growth occurred in skilled service and technical areas. Many poor and middle-class families did less well. The administration, although an advocate of free trade, pressured Japan to agree to a voluntary quota on its automobile exports to the United States....
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  • Fall '10
  • PIETRZAK
  • New World Order, annual inflation rate, sustained economic growth, II. Consumer Spending, optimistic buying spree.

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