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Pros And Cons Of Reaganomics

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Introduction Perhaps no aspect of Ronald Reagan’s presidency is so greatly praised—or so heavily criticized—as Reaganomics. Reaganomics is the nickname of President Reagan’s modified version of supply-side economics, which the President hoped would combat the weak economic performance of the 1970s. As inflation and unemployment soared while economic growth stagnated through the mid to late 1970s, public opinion turned against President Carter as Americans blamed him for the so-called “stagflation” that burdened the nation. As Americans searched for a solution, then-governor of California Ronald Reagan offered one as he campaigned for the Republican nomination in the 1980 presidential election. Reagan argued economic growth was stifled …show more content…

Inflation remained high, and imports dramatically outnumbered exports. However, the economy stabilized in 1983 and continued to grow through the remainder of Reagan’s presidency. Unfortunately, Reagan’s plan cost the federal government trillions as increased military spending hugely outweighed tax revenue. The President had hoped to balance military expenses by cutting social programs, but ran into trouble as he was reluctant to cut such programs and Medicare and Social Security. Under Reagan, the national debt ballooned from one to three trillion dollars (although Republicans blamed Congress’s failure to pass a balanced budget, not Reaganomics, for the increased debt) and the deficit skyrocketed. However, the nation enjoyed a continuing increase in gross domestic product (GDP) and a steady fall in unemployment and inflation …show more content…

Some of the most common Democratic criticisms against Reaganomics are that it dramatically increased the deficit, unfairly benefitted the rich, led to too little spending on social programs such as Medicare and Social Security, spent too much federal money on the military, and posed danger to workers, consumers, and the environment as a result of deregulation. Opponents of Reaganomics often call it “trickle-down economics,” suggesting that the majority of its benefits go to the rich while little is left for the poor. Democrats generally oppose Reaganomics with calls for higher taxes to fund more social programs, more regulation of businesses, and reduced (or at least unchanged) military

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