What did Ronald Reagan's economic plan known as Reaganomics consisted of?

Answer 1

Reaganomics consisted of two theories:

The first was that government could stimulate the economy by increasing it's spending on US made goods. This was called "prime pumping" the economy.

The second was "trickle down" economics. The idea was that if you created as many wealthy people as possible (or reduce penalties for being wealthy) that the spending of these "wealthy" people would "trickle down" and create wealth for those of lower classes. (i.e. a person takes money that would have gone to the government for capital gains taxes, and adds a pool on to their house--instead of the money going to bureaucrats, it creates construction jobs, manufacturing jobs etc.)

His program focused on federal budget cuts and tax cuts from individuals and businesses.

Answer 2

One major part of Reaganomics was Reagan's plan to get more revenues in a fairer way. He decreased taxes for the richer portion of Americans, which, as counterintuitive as it may seem, increased federal revenues because they were more motivated to earn more. Everyone who paid income tax actually had their tax rates decreased, but the tax cuts were so much bigger and more effective for the rich that Reagan and the republicans were seen as letting the rich get away with ridiculous greed, while in actuality the big tax cut increaed revenues quite significantly. to read all about Reaganomics with a good summary at the begginning, go to this entry in an economic encyclopedia at http://www.econlib.org/library/Enc1/Reaganomics.html