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Re: 1980 Reagan Revolution

In:

Submitted By volumtebou
Words 1222
Pages 5
1

President Ronald Reagan's record includes sweeping economic reforms and deep across-the-board tax cuts, market deregulation, and sound monetary policies to contain inflation. His policies resulted in the largest peacetime economic boom in
American history and nearly 35 million more jobs.

2

By reducing or eliminating decades-long social programs and significantly increasing defense spending, while at the same time lowering taxes and marginal tax rates,
Reagan's approach to handling the economy marked a significant departure from that of many of his predecessor's Keynesian policies.

3

Before the tax cut, the economy was battling high inflation, high Interest rates, and high unemployment. These three issues dropped sharply after the tax cuts. The unemployment rate, which was at 9.7 percent in 1982, began a steady decline, reaching 7.0 percent by 1986 and 5.3 percent when President Reagan left office in
January 1989.
Inflation-adjusted revenue growth dramatically improved. Over the four years period before 1983, federal income tax revenue reduced at an average rate of 2.8 percent per year, and total government income tax revenue decreased at an annual rate of 2.6 percent. 4

In accordance with Reagan's less-government intervention views, many domestic government programs were cut or experienced periods of reduced funding during his presidency. Tax breaks and increased military spending resulted in an increase of the national budget deficit and led Reagan and Congress to approve two tax increases, aiming to preserve funding for Social Security, though not as high as the 1981 tax cuts. 5

The American economy went from a GDP growth of -0.3% in 1980 to 4.1% in 1988
(in constant 2005 dollars), averaging 7.91% annual growth in current dollars.

6

The proportion of total income taxes paid by the top 1 percent rose

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