Can somebody give me an easy defintion of Reaganomics? no crazy left wing answers please?

Question

Thanks everyone, Reaganomics sounds pretty good to me!

Answer 1

Reaganomics was a successful strategy against the former USSR.

It increased spending on defense and military by 100X thus bankrupting the Soviet Union as it tried to keep up.

Answer 2

Reaganomics is supply side economics, as in supply and demand.
Let the private sector 'supply' the goods and services people will buy. Make it easier for suppliers by knocking down trade barriers and high taxes. As opposed to waiting for the consumer to demand , and suppliers pricing goods too high, the Carter inflation cycle.
Reaganomics realized that the USA could not compete with wages in the rest of the world in manufacturing so many Reagan policies helped establish more service orientated industries, like cell phones, retail, cable TV,logistics.

Answer 3

Reaganomics refers to supply side pro business economics. Most everyone derives the term "Reganomics" to tax policy so that's what I'll keep my answer based upon. President Reagan's tax policy was very similar to President Kennedy's of the 1960's. Officially passed after Kennedy's assassination in 1964, it cut taxes across the board for all taxpayers. In 1963 before the policy was passed the tax rate for the top 1 percent of income earners (in excess of $300,000 annual income) was 91%, after the cuts the wealthiest Americans were paying a slashed rate of around 70%, where it more or less remained for a number of years. President Reagan's policy again similar to Kennedy's slashed taxes across the board, to about the levels of today, which is about 35-39% for the top 1 percent. The idea behind the theory is simple: Cut taxes for all taxpayers. Business will have more money to invest, prompting economic expansion, job growth and enlarging the tax base, which equals more government revenue. Wage earners will have more money to spend, also prompting economic expansion, boosting business profits...ect(we've come full circle). Of course there are some flaws to this theory, however I won't get into any of them, as all you wanted to know was the definition of "reagannomics". Hope this helps.

Answer 4

Reaganomics - Tax cuts for the rich who will use the wealth to create more jobs which will trickle down to everyone else. In actuality they used the money to do leverage buying of companies that they merged and trimmed by firing thousands of employees to boost the stock price. Reaganomics was and is nothing more than the rich peeing on the poor.

Answer 5

Reaganomics (a portmanteau of "Reagan" and "economics," coined by radio broadcaster Paul Harvey) is a term that has been used to both describe and decry the free market advocacy economic policies of U.S. President Ronald Reagan, who served from 1981 to 1989. It is comparable to Thatcherism, the economic philosophy of British Prime Minister Margaret Thatcher (1979–1990), who was Reagan's contemporary.

Reagan assumed office during a period of high inflation and unemployment, which had largely abated by the time he left office. It continues to be a matter of contentious political debate to what extent this was caused by Reagan's fiscal policies (especially tax cuts) and to what extent it was due to other factors, such as the inflation-fighting monetary policies of the Federal Reserve under Paul Volcker and a large decline in oil prices caused by the resolution of supply shocks in the Middle East.

Answer 6

There isn't any crazy left or right win answer to the what is part of your question, only to a was it effective type question.

Reaganomice was Supply Side Economics taken to a cartoonish extreme. It included but wasn't limited to, massive cuts in social programs, huge tax cuts and abatements to large corperations and the ultra rich, decent tax cuts to the middle class, and small tax cuts to the poor, loosening of restrictions on business in the world of trade commision, and merger/acquisition law, and other big business concerns. The other part of it was for the Government to borrow the funds that were lost from tax cuts to bolster the value of the dollar, and reduce inflation.

The reality is that it didn't work as a long term strategy, but did in the short term. There are a lot of theories out there that break it down using different methods, but they are always slanted to one side or the other.

Answer 7

I won't give you a crazy right wing answer either, It is supply side economics and is generally put into place during a failing economy, in order to stimulate growth. Give money back to the people and they will spend it in the economy is the theory. It is a short term situation, and if carried out past it's prime will cause a recession.

Answer 8

Cut taxes for everyone. If you give people who have a lot of money some of it back, they will reinvest into the economy. For example, give a company a tax cut and they can use it to hire more people, buy more machines, etc. Trickle down economics.

Reagan took on the false premise that government creates economic growth.

Answer 9

A form of what was called "trickle-down" economics - cut taxes for rich people, allow the rich people to have and spend more of their money, and it will benefit everyone, eventually. That was the theory. Did it work? You'd get two different answers depending on the political party/philosophy of who answers. Unemployment, budget deficit, and poverty were all very high during Reagan's reign.

Answer 10

The opposite of the democratic notion of "taxing the rich."

Taxing the wealthy and businesses results in lost jobs, lowered wages, and outsourcing (i.e.: Clinton years).

The mistake was in giving tax breaks to corporations without tying them to strings (healthcare, daycare, etc.), in my opinion.