The Reaganomics is a term that has been widely used about the economic policies created by the former US president Ronald Reagan. The economic policies of the Reaganomics were increased military spending, deregulation of the domestic market, widespread tax cuts, and decreased social spending. What this did is that the military saw a big boost, the large corporation gained much more power and pretty much took over most of the domestic market, the tax cuts gave the people bigger spending power, and the socially endangered found themselves in a worse situation as they were given less support.
Answer:
Reaganomics refers to the economic policy that President Ronald Reagan put forward in the 1980s. Reaganomics are associated with the liberal supply-economic theory. The main objectives of Reagan's economic policy were the reduction of government spending, the reduction of federal income and capital gains taxes, the reduction of government regulation (laissez faire) and better control over the money supply in order to reduce inflation.
For the Reagan presidency, the United States experienced a decade in which both unemployment and inflation - a combination called stagflation - increased. In that climate there was a demand for an expansion of the money supply. President Nixon's wage measures and price controls were phased out. Moreover, strategic oil reserves were set up to limit the negative consequences of a possible oil crisis.
Reagan indicated to increase defense spending and at the same time reduced taxes - an approach that differed from his immediate predecessors. He introduced a lower marginal tax burden and simplified the legislation on income taxes. He also continued the trend towards more flexible legislation. A consequence of that policy, however, was that the government had an average annual budget deficit of 4.2% of GDP during Reagan's entire presidency, while under Carter it was only 2.5%. The GDP per capita, calculated for adults, no longer grew by 0.8% per year as under Carter, but by 1.4% under Reagan.
