Reaganomics was one of the most serious attempts to change the U.S. economic policy. This was based on the supply-side theories of an economist known as Arthur Laffer. There were three steps to Reaganomics, step one was reduce the growth of government spending. Step two was reduce the marginal tax rates on income from both labor and capital. Step three was to reduce regulation, and reduce inflation by controlling the growth of the money supply.
America is still a fairly young country and this past Independence day it turned only 239 years old. Some people might consider that a long time; however, a lot of other countries have been around for thousands of years. As a new country we are still learning how to handle issues, manage money, and several more responsibilities all at once. It is hard, but we are managing it, but for how long? The biggest challenge facing the United States is our national debt.
Reagans economic policies resulted in a considerable decrease in unemployment and inflation as well as one of the largest peacetime economic booms in US history. Numerous jobs were created. Families were now able to plan, budget, and pay their bills. The Federal government that is often insatiable was now on a rest and businesses/entrepreneurs were no longer hassled unnecessarily.
In order for America to afford the tax cuts and increase in defense spending, Regan reduced spending on important welfare and social programs, which only increased poverty in America and widened the gap between the rich and the poor. An example of a welfare program which Reagan reduced support towards, was food-stamps. In 1983, Reagan cut down the outlay on food stamps from $11.8 million to $9.6 billion, and the cuts would continue to be about $2-3 billion yearly for the rest of his presidency (Danziger, n.d). Bill Moyers, a former press secretary of the White House said that the cuts in food stamps are “putting people into a 1981 version of the bread line (Hayward, 2010).”
Considering the decade of 1991 to 2001 had a great economic outcome, I believe the U.S. government took the right course of actions during this time. Policy makers, especially during Clintons time in office, did a phenomenal job implementing both monetary and fiscal policies. U.S. Federal Reserve Bank chairman Alan Greenspan was one of the reasons for the economic success of this decade. “During his tenure he led the Federal Reserve through several events with major economic repercussions, including two U.S. recessions, the Asian financial crisis of 1997, and the September 11, 2001, terrorist attacks. He had a reputation for being strongly anti-inflation, focusing more on controlling prices than on promoting full employment.
The New Deal did not benefited the U.S.in the long term. The New Deal was created between 1933 and 1938 by Franklin Roosevelt. He created the New Deal for people that were unemployed. The New Deal provided old-age insurances and unemployment benefits. It was also was supposed to help the families that dependent children and for people that were disabled.
The period from 1960’s to 1970’s was a hardship time for Americans because of Vietnam invasion. In an attempt to contain and defeat communism, the United States, oblivious of the enemy capability and filled with pride, invaded Vietnam at a cost of large financial expense and human lives. North Vietnamese military supported by forces of China and the Soviet Union fought the American force ferociously and was able to force America to end its invasion in 1975. As with most other third world countries, Vietnam also has a long history of colonization by European powers.
The Great Depression started with the stock market crash of 1929. “In 1925, the total value of the NEW YORK STOCK EXCHANGE was $27 billion. By September 1929, that figure skyrocketed to $87 billion” (The Market Crashes 1). Stocks were being sold for way more than their reasonable value and that couldn’t go on indefinitely. Although more people in the U.S.owned stock than ever before, “90% of American households owned precisely zero shares of stock” (Sinking Deeper and Deeper 1).
Lyndon B Johnson became the thirty-sixth President of the United States after the assassination of John F. Kennedy. He was born and raised in Texas and lived in poverty; therefore, he felt that poverty was a more pressing issue than segregation (Shultz, 2013). He felt that if everyone had food, an education and a good paying job that America would be a “Great Society”. This brought us some of the social welfare that we continue to have today, such as the Head Start and Housing and Urban Development.
Since the early days of the Republic, the isolation of power between both the state and federal governments has altered. The isolation of power between both governments has altered on the grounds that Washington has more capability and and the state governments have lost their capability. However, the states are still important up to this very day. The states elect senators and representative, in addition to that, they request and use money from federal taxes, and etc.. Fiscal federalism has decreased local control over local governmental assistance. The states commenced to obtain the first federal grants prior to the Constitution 's adoption, in the establishment of land grants founded by the national government to the states, thereby, to