Logan, TaVaris
Mrs. Milroy
During his campaign in 1980, President Ronald Reagan proposed his plan to fix the nation’s economic crisis. Once he was elected President of the United States, he began his work on the American economy. The actions that were made by Reagan to fix the United States economy were called “Reaganomics,” and they were deemed as “the most serious attempt to change the course of U.S. economic policy of any administration since the New Deal,” (Niskanen). Reaganomics were perceived as a very successful plan and the policy could benefit America today in its current crisis.
President Reagan signed the Economic Recovery Tax Act of 1981, in August of 1981. This act, combined with the Tax Reform Act of 1986, reduced individual tax rates from 70% to 28%. These were, “the lowest individual and corporate income tax rates of any major industrialized country in the world,” (2010). Once tax cuts were fully in place, Reagans Recovery skyrocketed. In addition to the tax cut, 20 million new jobs were created during Reagan’s presidency. Unemployment rates fell to 5.3% by 1989 and the poverty rate declined every year from 1984 to 1890.
Many other great things happened during Reagan’s recovery plan. Price controls on oil and natural gases were eliminated; which caused the price of oil to drop by more than 50%. Federal spending also declined to 21.2% of “GDP” in 1989 (FactReal). The American standard of living had increased by almost 20% within 7 years of Reagan’s presidency. The Reagan Recovery also led to the historic 25-year economic growth that America experienced.
Some may argue that Reagan’s recovery plan had a negative impact on American history. The tax cuts and military spending cost the government trillions of dollars. Even though there were negatives to his recovery plan, Reagan caused the economy to grow to its highest in 50 years, in the year of 1984. Recessions did not occur in America from the time frame of November of 1982, to July of...