0
When President Ronald Reagan came into office inflation was hovering around 21%, which means that the cost of goods was inflated by around 21%. An item that cost $1.00 in 1978 would cost $1.21 in 1981. Reaganomics (trickle-down economics) was the belief that if you loosened the restraints on the businesses and the people that they would create economic growth that would lower inflation and create wealth for more people. Inflation dropped to around 3%, more businesses were created, middle class Americans became upper class and lower class people became middle and upper class. The U.S. dollar strengthened the world's economy and was used as the preferred money to do business around the world.
Truth be told "trickle-down economics" wasn't Reagan's idea; it came from Warren G. Harding and Calvin Coolidge, who by lowering taxes and reducing the size and spending of government stopped the Great Depression of the 1920s and created huge industrial growth, which allowed Americans to own cars and have weekend leisure time (the "Roaring Twenties").
Wiki User
∙ 8y ago
Add your answer:
Earn +20 pts
What principals formed the basis of reaganomics?
Principles include, promoting low taxes, low social-services spending, and high military spending.
Was increased funding for social programs part of the reaganomics?
no
What were some social concerns of the 1980's?
Reaganomics. Illegal drugs.
What were three goals of the reaganomics?
The three goals of Reaganomics were to lower taxes, higher defense spending, and curtailed spending for social surfaces. Reagan's plan to help the economy.
The key element of the porgram that came to be called reaganomics was?
Budget cutz in social programz
How can you use reaganomics in a sentence?
Some have criticized elements of Reaganomics on the basis of equity.
What term was given to reagans economic program by the media?
Reaganomics
What were the effects of Reaganomics?
Some economists and critics have blamed the widening gap between the rich and the poor on Reaganomics. His tax cuts and other policies gave additional money to the rich. He cut social programs, increasing the depth of poverty and promoted "Trickle Down Economics".
What did reaganomics emphasize?
Reaganomics emphasized:reduce the federal income tax and capital gains tax
How does infrastructure affect development?
The fundamental services and facilities required for any social and economic development are called infrastructures of development.
What is wrong with our economy?
Reaganomics.
How do you contact a social workers?
Depends on where you are and what type of social services you need. Most social or welfare services can be found in the blue pages of your local phone book under social services.
