In balance were Reaganomics good or bad for the U.S.?

Question

Twenty years after Ronald Reagan brought us "morning in America" and trickle down economics is the U.S better off or worse off?

Answer 1

In short, the United States is better off.

The supply-side economic initiatives launched by the Reagan administration (Reaganomics) greatly assisted in reducing unemployment and curbing inflation. Reagan tax cuts stimulated investments.

It is also important to note that the Reagan and Bush (George H.W.) administrations were instrumental in the creation of NAFTA .

Reagan economic and defense policies also increased pressure on the USSR, resulting in its ultimate demise.

Answer 2

Reagan was not responsible for the economic recovery of the 1980s. That was the Federal Reserve, under Chairman Volcker, though admittedly those anti-inflation policies championed by Volcker and Reagan were responsible for an end to stagflation, but also a key cause of deindustrialisation.

Furthermore, supply side economics did not have much impact, consumer spending from lowered inflation, not investment by rich people, led to prosperity. Reagan s tax cuts did not benefit most Americans, and despite Republicans routinely claiming to be fiscally responsible , they from Reagan until the present day have proven they are the opposite. As well as giving away money to the rich, Reagan began a massive military buildup that most nonpartisan analysts conclude was not a big factor in toppling the USSR. The deficit increased hugely and rapidly under Reagan.

Reagan did impose pain on the weaker sectors of society, those without lobbyists and political power. Minorities, poor, mentally ill were all heavily targeted by Reagan s pointless spending cuts. Under Reagan, the draconian and failed war on drugs and mandatory minimum sentences ensured that America s inacarceration rate would be the infamous world high in all the ways, and that black communities would be set back. Conservatives lectured about broken families , single mothers and lack of family values even as they made their own nightmares true.

Looking back, Reaganomics has left a horrible legacy. High unemployment, from 7% under Carter to over 10% in 1983, was followed by short booms and long busts. Wall Street deregulation led to the Great Recession in 2008, which nearly a decade later still hurts the US and world economy. Income inequality has skyrocketed, and the middle class suffers under high taxes while rich people are able to get off with at best less than half, while continuing to undermine the global economy and promote an unhealthy, unregulated marketplace. The US manufacturing sector has been all but destroyed, and numerous economic problems plague the US. The successful economic policies of FDR, while shown by the 70s to be flawed, are still far better than Reaganomics. It has been proven that economic stimulus such as in the 1930s and in 2009 and a fair, regualted but also open economy works best.

Answer 3

A couple months ago I read, "President Reagan: The Triumph of Imagination" by Richard Reeves. Despite the glowing title, the author did not heap praise on Reagan. He, almost grudgingly at times, credited Reagan with some achievements.

I had forgotten how bad the economy had been under Carter, and what little faith people had. Reagan restored that faith, even though there were some substantial economic hiccups along the way, such as the Savings & Loan debacle where banks began to go bust.

Reagan encouraged businesses to invest in R&D which led to the technology boom of the 1990s. Reagan's approach to the Federal Deficit helped spur this also. He once quipped, "I'm not worried about the deficit. It's big enough to take care of itself".

The U.S. is undeniably much better off for Reaganomics. It was the right approach at the right time. It took us out of a period of malaise in which no one seemed even vaguely capable of controlling inflation.

I once saw a cartoon in which Reagan was depicted as Peter Pan, flying out of a window in a trail of pixie dust, and encouraging nervous investors to take that leap of faith off the window sill.

Reagonomics gave people the faith to make that leap.

Answer 4

alot of economist believe that Reaganomics help start the burst in the late 80s and 90s.

Answer 5

It was called "voodoo economics".
Even Reagan's finance person admitted (years later) that he surprised himself in coming up with the far-fetched/hair-brained economic policies.
I remember this: as a result of Reaganomics, many people killed themselves when they lost their jobs as a result of companies downsizing.

Answer 6

... eh.. .the economy went into a recession, which was the No.1 reason the elder Bush didn't get re-elected... well that and his "new taxes".... hahahaha...

sometimes I wonder how much their actions really influence the economy...

but I think greenspan was the glue that held things together... bernake is in rough waters already

Answer 7

Of course a bunch of Fascist mental midgets on this board bad mouthing a Republican.