Reaganomics is the program of austerity put in place by the Economic Recovery Tax Act of 1981. It included a 20-percent cut in the top income tax rate (from 70 to 50 percent) and drastic cuts in non-defense government spending.
Reaganomics caused an 18-month contraction of the economy and the highest U3 unemployment rate, 10.8 percent, ever recorded since the government started calculating it. Reaganomics didn't work; in 1982 the government enacted a law called the Tax Equity and Fiscal Responsibility Act that repealed a lot of the Reaganomics reforms.
They did not, however, repeal the tax cuts, and they should have. The selling point of tax cuts is that by cutting taxes on rich people they will create jobs and new products and bring more revenue into the government than you would have had at the old tax rates. This selling point ignores something that is crucial to destroying it: no businessman creates a job unless he has work for that person to do.
Some have criticized elements of Reaganomics on the basis of equity.
Reaganomics
Reaganomics emphasized:reduce the federal income tax and capital gains tax
Reaganomics.
Reaganomics led to decreased inflation, decreased interest rates, and increased budget deficits.
no
no
to increase regulation
Reaganomics was the name given to Reagan's idea that revenue would be increased if taxes were lowered so that people had more more to spend, thus stimulating the economy.
reaganomics
Trickle down theory.
no