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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Reaganomics didn't work; in 1982 the government enacted a law called the Tax Equity and Fiscal Responsibility Act that repealed a lot of the Reaganomics reforms.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.

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King Boyer

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1y ago
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Wiki User

5y ago

The policy of Reaganomics was based on "supply side" economics (which is often criticized as the "trickle down" strategy) to build economic growth. President Ronald Reagan championed across-the-board tax reduction and cutbacks in spending for social programs such as job education and welfare. The intent of the tax cuts was to leave capital in the private sector where it could be re-invested, rather than being acquired and used by the federal government. The net increase in economic activity would eventually generate tax revenue to compensate for the cuts.

The reactions to this idea are almost always subjective. Many critics decry the reduction in taxes for the richest Americans, who showed significant gains in wealth and hence political power. Supporters of the concept say it is based on the principles of free enterprise, rather than inefficient government involvement through higher taxes, subsidies, and public spending. The support for Reaganomics was divided substantially along the lines of the two major political parties. And as with most governmental policies, it had mixed results for the US economy.

Deregulate industries(apex)
deregulate industry

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riley jade

Lvl 1
2y ago
go home
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SaucyVegan

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2y ago
not quite bud
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SaucyVegan

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2y ago
lower taxes for the wealthy
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rigsterman 1

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1y ago
No one’s reading that
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TX1 LAJOYA

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1y ago
it was welfare
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The Lost Sinner

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1y ago
It’s lower taxes for the wealthy APEX.
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Sekani Smiley

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1y ago
Fashoo Lowered Taxes (Apex Sep. 2022)
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Amaria Dameron

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12mo ago
what the f**k

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Closly

Lvl 4
3y ago

Reduce welfare payments (APEX)

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Wiki User

10y ago

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.

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Wiki User

8y ago

Deregulate industries and Lower taxes for the wealthy

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paulbenn

Lvl 13
1y ago

It included sending workers to prison for going on strike.

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Alexa Johnson

Lvl 5
2y ago

Deregulate Industries. - APEX.

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Emiliano Torp

Lvl 1
2y ago
where did you find that answer

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APEX User

Lvl 7
2y ago

lower taxes for the wealthy

APEX 2021

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Jeffrey Boyle

Lvl 2
2y ago

Reduced welfare payments

(Just did this test )

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Neoma Donnelly

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2y ago
love it ty!
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Rafaela Morissette

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2y ago
How do you know?

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Ariana Mendoza

Lvl 6
1y ago

Lower taxes for the wealthy

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