Reaganomics :( Flashcards
(43 cards)
inflation between 1980 and 1989
1980- 13.5%
1989- 4.7%
unemployment between 1980 and 1989
1980- 7%
1989- 5.2%
but in 1984 it was 11%
what was reaganomics
trickle down economics
cutting taxes and federal spending will improve the economy/ if you let businesses do their own thing the economy will improve
Tax the rich so they pay their employees “more”, this effects welfare programmes and means the rich get richer.
pro of Reaganomics
recovery from stagflation
cons of reagnonmics
defecits in trade
larger national debt
the four pillars of Reaganomics
-reduce federal income and capital gains taxes
-reduce federal spending
-reduce government regulation
-tighten the money supply to reduce inflation (monetarism)
debt from 1980 to 1989
1980- $1 trillion
1989- $2.6 trillion
trade defecit 1980 to 1989
1980- $74 billion
1989- $221 billion
government spenidn 1980-1989
1980- $699.1 billion
1989- $859.3 billion
stagflation
prices rising and unemployment is high
trickle down theory
cut business taxes so they can use the extra money to hire more workers
At the height of his career, Reagan was paying what % of his income in federal and state taxes?
90%
what did Reagan say about defence
“it was not a budget item”
How many airtraffic controllers did Reagan fire when they went on strike
12,000
where did Reagan want cuts in
taxation
federal government
welfare payments
what did Reagan believe in
supply-side economics, which is economic growth through low taxation and low gov. regulation
what were Reagans policies
pro business and anti-labour
how was reagan pro business and anti labour
-opposed minimum wage and interfered with cingressional attempts to change it (this widened the class gap)
-openly hostile to unions, he fire 12,000 air traffic controllers who went on strike, after that there were fewer strikes
-he appointed over 400 conservatives to the judicary and their rulings made it more difficult for women and minorities to sue employers over discrimination
other than economic, what other regulations did he cut
enviromental
38% of the consumer product safety comission, meaning consumers weren’r guranteed safety
despite his promise of cutting federal expenditure, where did Reagan increase it
defence, as it wasnt a budget item,
despite this even non defense expenditure increased
what was congress forced to pass in 1985
Balanced Budget and Emergency Defecits Control Act 1985
why were congress forced to pass the Balnced Budget and Emergency Deficits Control Act in 1985
the budget deficit was over 5x that of his predeccesors
why did the USA remain a world economic giant
it had 5% of the worlds population and by 1990 it produced 25% of the worlds goods
how did Reagan finance his expenditure
with loans from Germany and Japan
even joking “im not worried about the trade deficit its big enough to take care of itself”
