Impact of Reaganomics on the American Economy
analytical Essay
1027 words
Leading up to the year 1981, America had fallen into a period of “stagflation”, a portmanteau for ‘stagnant economy’ and ‘high inflation’. Characterized by high taxes, high unemployment, high interest rates, and low national spirit, America needed to look to something other than Keynesian economics to pull itself out of this low. During the election of 1980, Ronald Reagan’s campaign focused on a new stream of economic policy. His objective was to turn the economy into “a healthy, vigorous, growing economy [which would provide] equal opportunities for all Americans, with no barriers born of bigotry or discrimination.” Reagan’s policy, later known as ‘Reaganomics’, entailed a four-point plan which cut taxes, reduced government spending, created anti-inflationary policy, and deregulated certain products. Though ‘Reaganomics’ was successful both at controlling “stagflation” and promoting economic growth, it has and always will be an extremely controversial topic regarding the redistribution of wealth.
Immediately after being sworn into office, Reagan implemented the first of many tax cuts. The Economic Recovery Tax Act passed in 1981 took 20% off taxes from top income levels and 25% off taxes from all lower income levels. Additional tax cuts, enforced in 1986, lowered taxes for those with high incomes by another 28% and those with lower incomes by 15%. These cuts were enacted based on the principle that tax breaks for the upper echelon of society would encourage investment and spending, creating new jobs for lower income individuals. Though these acts helped America during an economic low, they had consequences which are still being felt today. During Reagan’s presidency the distribution of wealth shifted unfairly towards individuals...
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... the one to maneuver us out of a situation we had never been in.
Works Cited
"American President: Ronald Wilson Reagan: Impact and Legacy." Miller Center. University of Virginia, n.d. Web. 10 Nov. 2013.
Auxier, Richard C. "Reagan's Recession." Pewresearch.org. Pew Research Center RSS, 14 Dec. 2010. Web. 13 Nov. 2013.
Bartlett, Bruce. "Why the Reagan Tax Cut Worked in 1981 and Why It Wouldn't Work Today." Stan Collender's Capital Gains and Games. CapitalGainsandGames.com, 13 Aug. 2011. Web. 14 Nov. 2013.
"LIFE AND TIMES." REAGANFOUNDATION.ORG. N.p., n.d. Web. 15 Nov. 2013.
"Reaganomics." Ushistory.org. Independence Hall Association in Philadelphia, n.d. Web. 12 Nov. 2013.
"Reaganomics: What We Learned." Consortiumnews. N.p., n.d. Web. 15 Nov. 2013.
Viksnins, George J. "Reaganomics After Twenty Years." Georgetown.edu. Georgetown University, n.d. Web. 12 Nov. 2013.
In this essay, the author
- Explains that america had fallen into a period of "stagflation" and high inflation, and needed to look to something other than keynesian economics to pull itself out of this low.
- Explains that reagan implemented the first of many tax cuts, based on the principle that tax breaks for the upper echelon of society would encourage investment and spending, creating jobs for lower income individuals.
- Explains that reagan made cuts from public programs in order to focus the federal budget on his military agenda. congress refused his proposals to make massive cuts to welfare programs.
- Explains how reagan decreased inflation by stabilizing the dollar, a method known as anti-inflationary monetary policy. reagan and volcker contracted the money supply, which reduced inflation from 13.5% to 3.2%.
- Explains that reagan was a laissez-faire advocate who believed it was beneficial to deregulate the market and that government regulations interfered with the stimulation of the economy.
- Explains that deficit spending became the backbone of reagan's policies. reagan decreased inflation and increased the national debt from $997 billion to $2.85 trillion during his time in office.
- Analyzes how reagan's economic choices unfairly redistributed the wealth in the nation. the wealthiest 15 of americans' income soared by a rate of 14%, while the poorest
- Explains that even though reagan was very confident about his economic plan many others were weary of his ideas. george w. bush sr. proclaimed reagan’s economic ideas as ‘vood-doo’ economics believing reagan's policy would not live up to its predicted outcome.
- Explains supply-side economics, a general term used to refer to reagan's economic policies, involves taking down barriers, such as taxes, and business regulations, in order to increase supply.
- Opines that reagan's policies have profoundly impacted the republican party. they expanded upon republican belief in state power, and widened the gaps in society.
- Analyzes how the reagan tax cut worked in 1981 and why it wouldn't work today.
Related
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In this essay, the author
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- Analyzes how the new right diverged from old right ideology through its extensive social agenda. they argued that by opposing feminism, abortion, gay rights, and other issues, they supported traditional family values.
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- Analyzes how reagan's focus on the economy brought reform to the power of the government in order to implement reaganomics.
- Explains reagan's efforts to reduce the support for civil rights that johnson had created, including a decrease in funding and employees in the civil rights department, and stricter requirements to meet in order to be eligible for social programs.
- Analyzes how the social policies of presidents johnson and reagan reflect the times during which they were presidents.
- Explains that neither president johnson nor reagan are well-known for their social policies. both presidents implemented reforms on immigration, inviting more immigrants to come to the united states, and granting citizenship to illegal immigrants.
- Explains that president johnson and president reagan were polar opposites in terms of social issues. they were in office in very different times of american politics, johnson during liberalism and reagan conservatism.
1132 wordsRead More - The Cold War and Reagananalytical essayThe Cold War and Reagan Topics What was the cold war? What were the causes? The Cold War at Home. -The U.S. involvement. What major roles did President Reagan serve in the cold war?
In this essay, the author
- Explains the cold war and reagan's role in it. cold war is defined as a conflict between nations for national advantage conducted by political, economic, and psychological means instead of direct military action.
- Explains the cold war's causes, including the struggle between conflicting values, such as democracy and statism in the east.
- Explains that after world war ii ended, threats of war with the soviet union began to circulate. since americans and soviets both fought for what they thought right, neither could come to an agreement with each other on how to rebuild the broken european nations.
- Explains that the marshall plan was a plan adopted by the united states for giving financial aid to european nations. eastern europe suffered due to the economic strategy of josef stalin.
- Explains that nato formed an alliance with western europe and the united states in 1949 to separate themselves from the countries of the east. the korean war was an example of capitalism versus communism.
- Explains that the cold war meant many things to americans in the united states because it came with it. the house committee for un-american activities investigated citizens in search of communists.
- Explains that reagan was involved in the arms race when he proposed "zero option," the removal of all ss20 missiles from asia and europe, and a 700,000-person march on new york.
- Analyzes how reagan's new strategic defense initiative, known as star wars, caused arms control talks with the soviets to produce nothing. during the years following the war terrorism was an ever-present threat to the lives of americans.
- Analyzes how reagan's administration led to less emphasis on the soviet union and on problems brewing in the middle east. reagan and gorbachev disagreed at the 4th summit in moscow.
- Analyzes how reagan sought for prosperity and peace with strength never trying to compromise the united states standard in any way. the cold war was fought through the build up of arms, technology, and psychologically on the home front.
- Cites the following sources: ac.acusd.edu/history/20th/coldwar8.html, icdweb.cc
1373 wordsRead More - Most Significant Events In Historyexplanatory essayNiskanen, W.A., (1988). Reaganomics. The Concise Encyclopedia of Economics. Retrieved October 26, 2008, from http://www.econlib.org/library/Enc1/Reaganomics.html
In this essay, the author
- Describes the events of the 50s, 60s 70s 80s and 90s that shaped america into the nation that it is today.
- Explains that the united states and the soviet union emerged as the two new superpowers and as archrivals after world war ii.
- Explains that the end of world war ii was also the beginning of prosperity for the middle and upper class citizens in the united states.
- Explains that the vietnam war was a war at home since many people in the united states believed that we should not be evolved in this war.
- Explains that the watergate scandal of the 70's was a big blow to the united states and their faith in the government.
- Explains how the senate hearings of 1973 took the scandal higher into the white house and eventually directly to the president of the united states.
- Explains that reaganomics was the most serious attempt to change the course of us economic policy since the new deal.
- Explains that the cold war began after world war ii and lasted until the soviet unions collapse in the 90's.
- Opines that the united states is in terrible need of change since it is fighting a war against terror that has no home to invade and hides from the brunt force of the nations.
- Explains that davidson, gienapp, heyrman, lytle & stoff. (2005). nation of nations. cold war america chapter 27.
- Explains that davidson, gienapp, heyrman, lytle & stoff, (2005). nation of nations. the vietnam era chapter 30.
- Explains that davidson, gienapp, heyrman, lytle & stoff. the age limits chapter 31.
- Explains that davidson, gienapp, heyrman, lytle & stoff. (2005). nation of nations. the conservative challenge chapter 32.
- Cites nebraska studies' the end of the cold war.
- Cites niskanen, w.a., "reaganomics". the concise encyclopedia of economics. retrieved october 26, 2008.
- Cites schultz, stanley k., mccarthy, joseph. american history 102 - civil war to present.
- Cites the sixties and the anti-war movement in the united states, from http://www.english.uiuc.edu
- Cites wells, t., the anti-war movement in the united states.
1960 wordsRead More - Ronald Reagan’s Presidency and Legacyanalytical essay"Ronald Reagan and Executive Power." Ronald Reagan and Executive Power | Presidential Leadership in the Cold War. Center for Civic Education, 2011. Web. 20 May 2014.
In this essay, the author
- Argues that ronald reagan was one of america's greatest presidents, deserving of the highest praise, for "winning" the cold war, establishing "reaganomics," and making a massive headway in the war against communism.
- Explains that president reagan opposed détente and believed it was a symbol of american weakness and vulnerability in the eyes of the soviets.
- Explains that the yom kippur war between arab countries and supported-by-western-countries israel ended with an israeli victory and an arab oil embargo on the west. reagan implemented "reaganomics," following the theory of supply side economics.
- Explains that liberal scholars blame reagan for many of today's problems surrounding al-qaida and the violence that continues in present-day developing countries.
- Analyzes how reagan's determination and ability to persuade congress to compromise with him led to extraordinary results. he changed the world by tipping the soviet union off the edge of a metaphorical economic cliff.
- Cites neuman, johanna, richard t. cooper, carl ingram, anna m. virtue, jacquelyn cenacveira, and janet lundblad.
960 wordsRead More - The Ronald Reagan Presidential Foundation & Library. “The Second American Revolution: Reaganomics.” Reagan Foundation. http://www.reaganfoundation.org/economic-policy.aspx (accessed May 2, 2014).
In this essay, the author
- Explains how the federal government extended its domestic responsibilities in order to transform the nation to what johnson called the "great society."
- Explains that truman's accomplishments in domestic policy were impressive, considering the hardships the nation was experiencing as world war ii ended, and the resistance of congress to liberalism.
- Opines that eisenhower was a "do-nothing" president, but he did not promote civil rights.
- Explains that kennedy called his new legislation program the "new frontier" but congress refused to pass most of his proposals, including a medical plan for the elderly, tax reductions, and more civil rights.
- Explains that reaganomics, or supply side economics, focused on improving the economy during his presidency. reagan cut taxes by 25 percent in three years, causing a recession that some call "the great inflation."
- Analyzes how nixon's economic boom was caused by a 90-day wage-and-price freeze, reductions on taxes, and ten percent taxes on imports. nixon resigned before officials had the opportunity to impeach him
- Explains that george h.w. bush didn't have as much interest in domestic policy as he did for foreign policy. he did not fulfill his claim to make sure not to increase taxes and reduce military expenditures.
- Explains that during carter's presidency, there was an immense problem with the inflation rate, which led to a national debt of almost sixty billion dollars.
- Explains that ford made the mistake of pardoning nixon, freeing him of punishment, and angering the people. ford failed to improve the economic situation.
- Explains that truman faced immense challenges during his presidency, including the end of wwii and the start of the cold war.
- Analyzes how eisenhower kept peace throughout his presidency, avoiding war when he could have decided to in indochina, and brought strength to the us during the cold war.
- Analyzes how nixon improved relations with china and the ussr, made an agreement regarding nuclear arms control with the soviets, and visited china, which led to the finish of the cold war. nixon invaded cambodia, although the country was neutral.
- Explains reagan helped stop communism when he ordered troops to invade grenada to preclude the formation of a military base for communists there. he also helped in the middle east, iran-contra affair, inf treaty, and iraq.
- Narrates how gorbachev pronounces that military assistance would no longer be given to communist nations in eastern europe.
- Explains that kennedy ordered troops to invade cuba at the bay of pigs, causing an uprising to rid of communism. the world gets really close to a nuclear war during the cuban missile crisis.
- Explains how he joined with leaders in europe to advocate for human rights and facilitate good relations between nations during the helsinki accords.
- Explains that during carter's presidency, there was an immense problem with the inflation rate, which led to a national debt of almost sixty billion dollars.
- Explains that johnson's reputation with foreign policy was a disaster because of the vietnam war. many americans were angered that american and vietnamese lives were being lost for unnecessary causes and reasons.
- Explains that he was a strong president with many achievements, like the creation of nato, or north atlantic treaty organization, an alliance against the soviet union, who fought to support democracy in the berlin blockade.
- Explains that eisenhower kept peace throughout his presidency, avoiding war when he could have decided to in indochina. he settled an armistice in korea and brought strength to the us during the cold war.
- Explains that although kennedy's efforts to improve civil rights and health care weren't successful, he managed to increase the minimum wage and negotiate a limited ban on nuclear testing.
- Explains that johnson's reputation with foreign policy was a disaster because of the vietnam war.
- Explains that reagan helped stop the spread of communism when he ordered troops to invade grenada to preclude the formation of a military base for communists there. he did much in the middle east.
- Analyzes how george h.w. bush didn't have as much interest in domestic policy as he did for foreign policy. the first guld war ended with the defeat of iraq. gorbachev declared that military assistance would no longer be given to communist nations in eastern europe.
- Explains that ford made the mistake of pardoning nixon, freeing him of punishment, and angering the people. ford failed to improve the economic situation.
- Opines that although nixon was successful in foreign affairs, all of his achievements must be looked at with his true intentions. the watergate scandal revealed him to be a corrupt man who did much for his own sake.
- Explains that carter had a hard time managing the difficult situation that the u.s. was facing. there was an immense amount of inflation and national debt that he wasn't able to address properly.
- Analyzes how lyndon b. johnson ranked differently in the first two charts because he focused much more on domestic affairs, while ruining his reputation with foreign policies with the vietnam war.
- Explains black, william, and james galbraith's role in corporate fraud at santa clara university.
- States ferrell, robert h., “harry s. truman: a 50th anniversary commemoration of his presidency.” missouri history.
- Explains that hochman, steven h., "biography of jimmy carter."
- Explains john f. kennedy presidential library and museum's "cuban missile crisis."
- Explains the john f. kennedy presidential library and museum's "they bay of pigs."
- Describes the lbj presidential library's "president lyndon b. johnson’s biography."
- Cites miller center's article, "american president: harry s. truman: domestic affairs."
- Explains that potter, garry w., "the bush family: a continuing criminal enterprise?" division on critical criminology.
- Describes the gerald r. ford presidential foundation's biography, accessed may 3, 2014.
- Describes the ronald reagan presidential foundation & library's "the second american revolution: reaganomics."
- Explains that lyndon baines johnson is a member of the united states senate.
- Explains that the u.s. department of state has a short history of the department of state under president eisenhower.
- Explains that the u.s. department of state has a short history of nixon’s foreign policy.
- Explains how nixon's watergate scandal affected the light in which his achievements in domestic and foreign policies were viewed. nixon improved relations with china and the ussr, and made an agreement regarding nuclear arms control with the soviets.
3331 wordsRead More - Hunger in East Tenessee: The Unnecessary Plagueopinion essayRonald Reagan took office January 20, 1981, and implemented his policy of Reaganonmics, which reduced government spending. In Closing the Food Gap, Mark Winne states, “Many elderly people who were surviving off of a meager Social Security Income and an allotment of food stamps were devastated when Reagan came into office” (Winne 21-23). Because of the reduced government spending, food stamp allotments were drastically reduced. Some rations were cut nearly in half or more, and multitudes were reduced to the minimum amount of ten dollars. Due to the increasing number of hungry people resulting from the lack of government assistance, “grass-root groups fell back on a kind of quintessential can-do American spirit to address the crisis at hand” (Winne 25). Food stamps are a big deal to people who are barely able to make ends meet because their budget must be split between thre...
In this essay, the author
- Opines that if more people were educated about the reality of hunger in east tennessee, they would be inclined to help resolve the problem. volunteering and making donations to the food pantries and organizations in the area are two of the best ways to support the less fortunate.
- Analyzes how ronald reagan implemented his reaganonmics policy, which reduced government spending and reduced food stamp allotments. local groups began to alleviate the effects of hunger.
- Opines that people can learn about hunger, how widespread it is, and what they can do to help. bearden high school promotes second harvest and encourages students to donate and help the community.
- Opines that making the issue of hunger part of the curriculum in high schools and middle schools in health classes or in general education classes would expose young people to the reality of one in six of their fellow citizens.
- Explains that 42 percent of clients had to choose between paying for food and paying utilities or heating fuel.
- Opines that if someone is educated about hunger as a child and taught about how he can help other people, they would be more prone to assisting those people whenever they become independent adults.
- Explains that knoxville has more opportunities to reach out to the hungry than most people realize. food pantries are constantly looking for more dedicated, long-term volunteers.
- Explains that food pantries can also partner with restaurants to provide the resources to feed the people who need it like feeding america does with panera bread. the operation dough nation program is the result of the teaming.
- Explains that food banks aren't the only groups working to eliminate hunger, although people usually associate helping the hungry with simply giving them food. the center for poverty research states that only 10.4 million of the poor are working poor.
- Explains that ethra, the east tennessee human resource agency, provides a wide variety of services to citizens in the area in order to assist the people who cannot help themselves.
- Opines that food stamps are helpful for people who really need them, but the government cannot afford to pay for everyone’s food that needs help. couponing is a good resource for low-income people because it teaches them how to manage money.
- Explains that they had the honor of volunteering at a local community garden at pond gap elementary, where they were to dig out the garden beds so that it would be ready for spring. community gardens are advantageous because it produces food for the families who use them, and it gets people involved in the area.
- Analyzes how douglas dowd debunks thomas malthus' radical theory on population growth in his book, inequality and the global economic crisis.
- Analyzes how dowd's report of death caused by starvation and malnutrition exposes the corrupt mindset many people have taken because they do not see people as individuals.
- Argues that hunger in east tennessee is a larger issue than most people know and could be reduced if more people were educated about it and people volunteered and donated.
- Cites center for poverty research's "a profile of the working poor".
1681 wordsRead More