Essay, Research Paper
If an actor can not when an Emmy, the prestige award of the silver screen, then is in it ironic that he can become our forty if president. Reagan?s goal was to increase jobs for Americans, and by implementing his Supply-side theory he captured his goal.
After the Carter administrative Reagan was forced to work with a very high unemployment rate. Reagan needed to put Americans in to jobs, and also increase the money circulation through out the economy. Reagan has a college degree in economics, which allowed him to consult with the problem that he encountered coming in to office. We were in need of a leader who can replenish the American economy and help try to produce jobs. We were also under the scare of the Soviet Union or the ?Evil Empire?. Reagan believed the in military spending and this would be a key element in to help bring a stop to communism.
Supply-side economics or the coined term ?Reaganomics? is what Reagan did to help the American economy. Reagan implemented deep across-the-board tax cuts, across-the-board domestic spending cuts, deregulation, and sound monetary policies to restrain inflation. Reagan implemented these policies quickly, and the economic boom that resulted created more than 21 million new jobs. The method of economic stimulation proposed by the Supply-Siders is the reduction of income taxes. According to theory, this will increase investment and economic activity. The people who benefit the most from income tax cuts are those with significant incomes. Thus Supply Side economics also increases income disparities. The Reagan administration felt that the wealthy would invest their money in business, creating jobs and increasing wages and therefore creating more taxable income. This is called trickle-down theory. The idea is that if you put the money in at the top it will “trickle down” into the pockets of the lower classes. The more jobs would go to the working class, and in essence, a trickle-down of wealth would occur.
Do to the economic genius of Reagan middle-class income growth Middle-class families, earnings between $20,000 and $50,000, enjoyed the fastest expansion in net worth during the Reagan boom, a 28 percent rise. A decade of declining real median family income was reversed to the upside. Double-digit inflation and interest rates were eliminated and federal social spending ratios stopped rising, and fell, for the first time in over 3 decades. Taxes were reduced by large amounts, and the economy expanded together with a new climate of competition and regulatory burden reductions. The Evil Empire was brought to its knees, without increasing the defense-spending ratio, ending a 40-year cold war. His economic policy changed America and prepared us for the fast move in the 90?s.
When Reagan left office in 1988 the economy was booming and communism was defeated. Reagan was the only president who defeated communism do to the expansion of the armed forces. Although much money was poured into the military, the American people never had to worry about the red scare
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