Reaganomics


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Reaganomics

An informal term for supply-side economics, which is a macroeconomic theory stating that a government can best promote growth by providing incentives for persons to produce goods and services. The primary way a supply-side oriented government does this is by maintaining low tax rates so that investors and entrepreneurs may use their money toward production. Maintaining low tax rates on the wealthy is one of the most important and controversial aspects of supply-side economics; the theory states that well off persons have the capital available to produce goods and services and thereby create jobs and grow the economy. Critics contend that this does not happen in reality, and that the wealthy are more likely to keep, rather than invest, their money. Reaganomics acquired the name because it was crucial to the economic policies of the administration of U.S. President Ronald Reagan. See also: Keynesian economics, Monetarism, Trickle-down economics.
References in periodicals archive ?
Yet, there was a novel element to Reaganomics and, looking back, it was a powerful element and new to the economic debate.
Reaganomics back in the 80s taught us about the questionable concept of the 'trickle down theory', where wealth supposedly runs downhill like water through the various social levels from the top, benefiting all.
The title track, made famous by folk legend Pete Seeger (who comes out of retirement to add a vocal) is as timely as ever but also boasts new lyrics bemoaning the legacy of Reaganomics.
In 1990, however, 'in a fit of Reaganomics or late Thatcherism', as Dr Bradburne describes it, 'the city decided to perform the shamanistic act of turning its exhibition-making department into a private company, believing that the magic of the markets would turn it into an efficient, market-driven organisation.
The New American Economy: The Failure of Reaganomics and a New Way Forward
It was the "trickle down" Reaganomics of the 1980s that claimed a rising tide lifts all boats and therefore the poor and working classes shouldn't complain as America's upper crust pulls further away from the rest of us.
While challenging Reaganomics with strategies of public ownership and economic planning, he also used laissez-faire rationales to oppose grain subsidies in Saskatchewan.
But if in a few years the economy is back on its feet, then the speech will have helped lay the intellectual groundwork not just for the recovery, but for a new governing philosophy with the potential staying power of Reaganomics.
Reaganomics substantially reduced the inflation rate within two years, substantially increased the rate of economic growth for the rest of the 1980s, and set the terms for economic policy for the rest of the century.
Getting semi-serious, Moore recalls that before Reaganomics, the wealthiest Americans were taxed at 90 percent, people had four weeks vacation and their pensions were untouchable.
Twenty-five years ago, during the mass spending machination of Reaganomics, writer/director James Cameron gave the world "The Terminator," an apocalyptic vision of modern society's obsessive quest for an industrialized and technological apex.
This publication was born in 1984 as the United States was still recovering from a terrible recession, endorsing Reaganomics with a 49-state landslide re-election and building up a savings and loan industry that would collapse soon thereafter.