Answered
In Animal Life
What effect did Reaganomics have on the federal deficit?
Under Reagan, the national debt rose from 900 billion to $2.8 trillion. The average national budget deficit per year was $237.5 billion. The federal deficit as percentage of G…DP rose from 2.65% of GDP in 1980, Carter's final budget year, to 3.04% of GDP in 1988, Reagan's final budget year. Other effects of Reaganomics: Spending and the public debt rose from 7% in 1980 to 10.8% in 1982, then declined to 5.4% in 1988.The inflation rate declined from 10% in 1980 to 4% in 1988.The GDP went from a growth of -0.3% in 1980 to 4.1% in 1988 (in constant 2005 dollars), which reduced the unemployment rate by 1.6%, from 7.1% in 1980 to 5.5% in 1988.There was a net job increase of approximately 21 million.In 1982, there was a brief recession due to application of high interest rates by the Federal Reserve.The misery index, defined as the inflation rate added to the unemployment rate, shrunk from 19.33 at the start of his administration to 9.72 when he left office, which was the greatest improvement record for a President since Harry S. Truman.Household income went from 8.8% to 8.3% making less than $10,000 and those making over $75,000 went from 20.2% to 25.7%. For more information visit the Related Link. (MORE)
