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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").

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