Pros And Cons Of Reaganomics

Reaganomics vs. Obamanomics According to Ronald Reagan Presidential Foundation and Library, “When Ronald Reagan took the oath of office as America’s 40th President on January 20, 1981, the country was experiencing some of bleakest economic times since the Depression. Taxes were high, unemployment was high, interest rates were high and the national spirit was low.” Reagan’s Economic Recovery Tax Act was the first major legislation passed in his first term as the President of the United States. It was passed in 1981 and is also known as ERTA. This law lowered income tax rates and allowed for the expensing of depreciable assets. The tax act also greatly helped small businesses and individuals. They benefited from special tax treatment, accelerated capital recovery, and being allowed to merge. ERTA is most known for its large reduction in personal income tax rates across the board (Schein, 2015). Reagan’s Economic Recovery Tax Act was supposed to create jobs by reducing tax rates, therefore restoring the incentive to create jobs for people. It was supposed to help improve the economy by reducing individual income tax rates, helping small businesses thrive and allowing them to save money, and creating jobs though those reduced tax rates. Reagan’s
This Act is basically an effort since it was signed to help the economy, save and create millions of jobs, and look into the economic future of our country. It does this by allowing for education benefits, increasing earned income tax credit, allowing more families to qualify for additional child tax credit, and much more. I found this one much harder to compare to the Second Industrial Revolution, Roaring Twenties, and Great Depression because it is still a work in progress and hasn’t seem a great amount of success like the Second Industrial Revolution or the Roaring Twenties. But it also isn't as severe as the Great Depression