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“Is the Inequality in U.S. Income Distribution Surging? essays
How did reaganomics impact america's economy
“Is the Inequality in U.S. Income Distribution Surging? essays
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For the past century, the United States has been regarded as the greatest hegemonic power in the world. The U.S. played the most important role in the advancement of mankind from social, political, scientific, military, and economic standpoint. Unfortunately, today this is no longer true. Since the 1980’s the U.S. has been on a gradual decline. The introduction and implementation of trickle down economics, otherwise known as “Reaganomics,” has contributed greatly to the systemic dismantling of the socioeconomic structure that made America great. When President Reagan took office, the U.S. was on the back end of the economic prosperity World War 2 had created. The U.S. was experiencing the highest inflation rates since 1947 (13.6% in 1980), unemployment rates reaching 10% in 1982, and nonexistent increases GDP. To combat the recession the country was experiencing, President Reagan implemented the beginning stages of trickle down economics – which was a short-term solution aimed to stimulate the economy. Taxes in the top bracket dropped from 70% to 28% while GDP recovered. However, this short-term growth only masked the real problem at hand. Many argue that Reagan “enacted irresponsible tax giveaways for the rich…[starving] the federal government of revenue [which] led to unprecedented deficits.” There is no doubt that “today’s budget deficits [can] impoverish our descendants.”1 Since 1980, America has experienced a quick and drastic change in income distribution between the top 1% and the rest of the country. The graphs below from the Center on Budget and Policy Priorities show how tax policies implemented by the Reagan Administration have compounded over the past thirty-three years to create drastic income disparities. W... ... middle of paper ... ...der.com/here-are-25-more-signs-that-america-is-not-1-2012-6>. Stone, Chad, Danilo Trisi, Arloc Sherman, and William Chen. "Center on Budget and Policy Priorities." A Guide to Statistics on Historical Trends in Income Inequality. Center on Budget and Policy Priorities, 6 Nov. 2013. Web. 03 Dec. 2013. . Talbott, John R. Obamanomics: How Bottom-up Economic Prosperity Will Replace Trickle-down Economics. New York: Seven Stories, 2008. Print. Thompson, Derek. "The Atlantic." The Atlantic. Reuters, 22 Nov. 2013. Web. 05 Dec. 2013. . U.S. Government. "2012 World Oil Consumption." Countries. U.S. Energy Information Administration, 2012. Web. 03 Dec. 2013. .
The "Reaganomics" - "The 'Reaganomics'" Ushistory.org. Independence Hall Association of Philadelphia, n.d. Web. The Web. The Web. 12 Nov. 2013.
One of the most important aspects of Reagan’s time in office was his domestic policy. He knew to have a successful presidency and create a strong, the people of the United States needed to be cared for. His first goal was to turn the economy around from the stagflation it encounter in the Carter era. Stagflation is very similar to inflation. The main difference is that inflation is the result of a quick economic growth while causes the value of money to decrease with now economic growth. To accomplish the turn around, Reagan introduce his economic policy which became known as Reaganomics. Reaganomics was based in supply side economics. This economic theory says that lowering taxes through tax cuts increases revenue by allowing more money
Rugaber, Chistropher S., and Josh Boak. "Excite News - Wealth Gap: A Guide to What It Is, Why It Matters." Excite News - Wealth Gap: A Guide to What It Is, Why It Matters. Associated Press, 27 Jan. 2011. Web. 20 Apr. 2014.
Reagan became president when the country was experiencing economic troubles; mainly inflation was at 13 percent and the unemployment rate climbing. Reagan developed a relief act and policies that became known as Reaganomics. Marc Cornman states “that there was no positive to the policies unless you were rich.” Interesting perspective, meaning that the policies covered lowering income and capital gains taxes, encouraging businesses to do business in the United States hoping to boost spending and in turn the economy. Mr. Cornman remembers more negatives, “Unemployment and the first recession, he raised taxes and eliminated deductions but continued to lower taxes for the wealthy.” He also recollects that President Reagan fired thousands of air traffic controllers for going on strike and that Reagan implied that unions were no longer needed this harming the economy even more. He feels ...
curb inflation. President Reagan was able to sign into law a tax cut in late
A large increase in government debt occurred during Ronald Reagan’s presidency in the 1980’s. Ronald Reagan was dedicated to decreasing taxes a...
The Atlantic. Atlantic Media Company, 20 Aug. 2013. Web. The Web. The Web.
... David R. Henderson: The Library of Economics and Liberty. http://www.econlib.org/library/Enc1/Reaganomics.html. Peery, Michael. A. 2012.
Firebaugh, Glenn. "The Trend in Between-Nation Income Inequality." Annual Review of Sociology (2000): 323-352. online.
There was general prosperity in America following the Second World War, however in the 1970s inflation rose, productivity decreased, and corporate debt increased. Individual incomes slipped as oil prices raised. Popular dissent surrounding the economic crisis helped Reagan win the 1980 election under promises to lower taxes, deregulate, and bring America out of stagnation. Many New Right supporters put their faith in him to change the system. To start his tenure, Reagan passed significant tax cuts for the rich to encourage investment. Next he passed the Economy Recovery Tax Act that cut tax rates by 25% with special provisions that favored business. Reagan’s economic measures were based on his belief in supply-side economics, which argued that tax cuts for the wealthy and for business stimulates investment, with the benefits eventually tricking down to the popular masses. His supply-side economic policies were generally consistent with the establishment’s support of free market, ...
Income inequality in the United States has increased and decreased throughout history, but in the recent years, the widening gap has become a serious issue. Income inequality is usually measured by Gini coefficient. According to this method coefficient varies between 0 and 100; while 0 represents complete equality (income is distributed equally among all the population of the country), 100 represents complete inequality (only one person receives all the country’s income, while the rest of the population receives nothing). According to the Census of Bureau, the official Gini coefficient in the U.S. was 46.9 in 2010. This is way higher than the all-time low coefficient of 38.6 set in 1968 (qtd. in Babones).
U.S. Energy Information Association. "U.S. Total Crude Oil and Products Imports." Eia.doe.gov. Web. 26 May 2011. .
Middle class Americans represent more than half of the United States’ population. They are the backbone of U.S. economics, and have been since the very beginning of the country’s history. However, an unstable job market, created by outsourcing, combined with a minimum wage which has not been raised since 1989, is gradually shrinking this economic group. To avoid the extinction of this critical class, the next president of the United States will have to go to extraordinary measures. Without major reformation, the middle class will continue to be absorbed by the lower class, ultimately resulting in the complete loss of one of America’s most important socio-economic bodies.
In the 1980s, American factories were closing at a rapid pace. President Reagan's famous "trickle-down" economics helped large corporations increase profits while at the same time he reduced the power of the union with the firing of over 11,000 Air Traffic Controllers who had gone on strike (Le Blanc 122).
Desilver, Drew. “U.S. Income Inequality, On The Rise…” Pew Research Center. 5 Dec. 2013. Web. 12 Feb. 2014.