Reaganomics

For those of you who don't understand Reaganomics, it's based on the principle that the rich and the poor would get the same
amount of ice. In Reaganomics, however, the poor get all of theirs in winter. - Morris K. Udall

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Reaganomics: The supply-side economics depends on the wealthy people to invest and use money which would deduce the Trickle-down effect. However, this is not the case for some or even most of the wealthy people. The reduced tax put more money in their pockets, but some just hoard and stay put. Which in the end made the economic inequality worsen.

Ronald Reagan is the president of the United States in 1981 to 1989, he is a replubican so he is more to the right side of the political spectrum than the opposing democratic party. Reaganomics is a term that is applied to his economic reforms during his presidential years. He believed that the government has too much control over the economics and they should cut spending (but increase spendings on military). This is the response to the huge national deficits from government spendings from presidents before him. His policies are supply-side economics or in other words, the trickle-down economics. By increasing prosperity of those who are wealthy, the wealthy will spend and invest more, which he believes will then create more oppurtunity for other people (who are poor and does not have the ability to create jobs for others).

However, statistics shows that the government, while decreasing spendings on economy intervention, the military spending went far pass then former president spendings. In the end, the public debt almost tripled after Reagan's presidential years ( P221). Also, in the end, by decreasing tax rates on the wealithier people, some of them tend to hold the extra money to themselves. This created more economic inequality. Nevertheless, Reaganomics continued to thrive until 2008, when Obamanomics pushed it off the table.

It's relationship to the ebb and flow of liberal economics is that Reaganomics addressed the problem of supply and demand again. Where at this time, favoring the supply side like Adam smith and Hayek. Reagan really wanted to have classical liberalism back in gorvenment and society.

Sources
"Reaganomics." Perspectives on ideology. Edmonton, Alta.: Alberta Education, 2010. 206-208. Print.
Reaganomics. Retrieved March 18th from: //http://black-frames.net//