Reagan's Economic

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Date Submitted: 11/26/2012 02:04 PM

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Reagan’s Economics Checkpoint

Axia College of University of Phoenix

Explain how Reagan’s policies reflected conservative politics and contributed to stimulation of the economy.

Reagan’s policies reflected conservative politics in the form of the actions and beliefs he took to better the American economy. Democrat’s did not believe in what Reagan wanted to do to better the American government but Republicans loved him because they were just as conservative. Reagan’s goals for presidency was to weaken big government, impose large tax cuts, increase military spending and cure inflation. At the top of President Reagan’s list of goals for American economy was weakening big government. He believed that he could get America to be how it was before the reforms of Johnson and Kennedy in the 1950’s.

His goal was committed to a program called the Economic Recovery Tax Act. This program was known as the “supply-side” economics. It resembled more or less the trickle-down economics theory from the Harding and Coolidge era. The Economic Recovery Tax Act focused on reviving the economy by giving all taxpayers a 25% across-the-board reduction. Although many politicians and theorist argued that this program would stifle business and economic growth Reagan and others believed it would help stimulate spending which in turn would raise tax revenues.

The second target goal for president Reagan was inflation. His tactics in curing inflation was to tighten money, high interest rates and wage and price controls. In doing so Reagan used two approaches: weakening unions to reduce labor costs and higher unemployment. His third ultimate goal was the increase in military spending and production. Reagan wanted to have the military ready for anything at any given moment with the most power. Reagan’s policies contributed to the stimulation of the economy greatly, in both good and bad. For a period of time the American economy was rising and rising. Many jobs were formed as business...