Essay on Reagan’s Economic Policy - 1121 Words

As President, Ronald Reagan encountered many significant events; from surviving an assassination attempt, to the space shuttle Challenger disaster. Perhaps the most significant event was the economic downturn. He came to office (much like President Obama) in the midst of an economic crisis; however, President Reagan was able to turn the economy around. How did he do this? In order to answer this question, you must first ask what the economy was like when he was sworn into office, how his policy changed from the prior administration’s policy, and how it contrasts our present economic policy. Prior to Reagan’s inauguration the country was suffering from double-digit inflation, high interest rates, high unemployment, oil shortages, and†¦show more content†¦Within seven years the wealthy had more money, but could also afford to give better pensions and pay raises. He reduced income tax from the top bracket 70% down to 28% spurring growth from the top on down and vice versa. This gave some people who lived in poverty a view that Reagan was indifferent to their struggles. This may have seemed the case but growth did happen, and hopefully those critics found jobs; however, driving to those jobs still pinched the pocket book a bit due to the energy crisis at that time. With the tax cuts on high income nationwide, oil companies were still paying on Windfall taxes. This was started by the previous administration where oil companies were taxed on the excess of profits they made. Oil companies raised prices due to production cost, supply, and demand. Reagan s ought to decrease the oil windfall profits tax in order to eliminate the energy crisis that happened only a few years earlier. In 1988 he ended the Windfalls profits tax all together. He wanted to provide government as a service to the states and people of those states. Businesses did not need to worry about taxes from this and taxes from that. In short he wanted the Nation to see less government. President Reagan wanted America to govern itself. He felt that when some prosper it would trickle down to all. He especially did not believe in big government spending programs. With his less government viewsShow MoreRelatedEconomic Policies Implemented During President Reagans Administration From 1981-19891313 Words   |  6 Pages Reaganomics refers to economic policies implemented during President Reagan’s administration from 1981-1989. The main ideology of Reaganomics was conservation which promoted that â€Å"government is the problem, not solution†. That means, society and market would function better with limited government power and regulations. Accordingly, Social wealth was distributed by unrestricted market, and profits that capitalists earned would trickle down to the bottom of society. In this way, people were in chargeRead MoreImpact of Reaganomics on the American Economy 1014 Words   |  5 PagesKeynesian economics to pull itself out of this low. 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