What Are The Effects Of Ronald Reagan's Fiscal Policy
Bonus: Ronald Reagan’s fiscal policies Many believe that Ronald Reagan is one of the best conservative presidents in United States history. Reagan (February 6, 1911-June 5, 2004) was the 40th president of the United States from 1981-1989. He originally was a member of the Democratic Party, but due to the parties’ shifting platforms during the 1950’s, switched to the Republican Party in 1962. Out of the many things Reagan was famous for, he was notorious for his implementation of supply-side fiscal policy.
Ronald Reagan soon made supply-side economics a phrase known by very household, and while promising an all around reduction in income tax rates and an even bigger reduction on capital gains tax rates. In the United States, commentators started to place …show more content…
Although many Americans liked and agreed with Reagan’s supply-side fiscal policy, many critics would say otherwise. Critics claim many major effects were caused by Reagan’s fiscal policies. As an example, in 1991 the Democrats on the Joint Economic Committee of Congress(JECC) released a report titled "Falling Behind: The Growing Income Gap in America," which accuses the victims of ‘Reaganomics' were the least affluent Americans. The report came to conclusion that "families in the lowest forty percent of the income distribution actually had lower real incomes on average in 1989 than they did in 1979.” Another negative effect caused by Reagan’s fiscal policies was that the savings rate did not rise in the 1980s. Supply-side predicted that the national savings rate would indeed increase. In fact, in the 1980s the personal
Ronald Reagan soon made supply-side economics a phrase known by very household, and while promising an all around reduction in income tax rates and an even bigger reduction on capital gains tax rates. In the United States, commentators started to place …show more content…
Although many Americans liked and agreed with Reagan’s supply-side fiscal policy, many critics would say otherwise. Critics claim many major effects were caused by Reagan’s fiscal policies. As an example, in 1991 the Democrats on the Joint Economic Committee of Congress(JECC) released a report titled "Falling Behind: The Growing Income Gap in America," which accuses the victims of ‘Reaganomics' were the least affluent Americans. The report came to conclusion that "families in the lowest forty percent of the income distribution actually had lower real incomes on average in 1989 than they did in 1979.” Another negative effect caused by Reagan’s fiscal policies was that the savings rate did not rise in the 1980s. Supply-side predicted that the national savings rate would indeed increase. In fact, in the 1980s the personal