Reagan Essay Example | Topics and Well Written Essays - 3750 words

Reagan - Essay ExampleRonald Reagans major focus during his first term was reviving the economy his administration inherited, which was plagued by a new phenomenon known as stagflation(a stagnant economy combined with high inflation). His administration fought double-digit inflation by supporting Federal Reserve Board chairperson Paul Volckers decision to tighten the money supply by dramatically hiking interest rate. Economist Milton Friedman said, Reagan understood that there was no way of shutting inflation without monetary restraint and a temporary recession. Friedman feels there were three key elements inherent in Reagans fiscal policy. Which was primarily knowing to curb social spending and increase defense spending. Reagan according to Friedman, accomplished this in three ways(1)by slashing tax rates and so cutting Congresss allowance.(2)by being willing to occupy a severe recession to end inflation. In the opinion of Friedman, no new(prenominal) post-war president would h ave been willing to back the Volcker Fed in its tough stance in 1981-82. I can testify from personal knowledge that Reagan knew what he was doing. He understood that there was no way of ending inflation without monetary restraint and a temporary recession. As in every area, he stuck to his guns and looked to the long term.(3)and in some ways the least recognized, by attacking government regulations. The federal Register records the thousands of detailed rules and regulations that federal agencies churn out in the course of a year.... and his detractors did not have such a regal assessment of his policies Reagans theory was really trickle down economics borrowed from the Republican 1920s (Harding-Coolidge-Hoover) and renamed supply side. Cut tax rates for the wealthy every one else will benefit. The supply side rhetoric was always a Trojan horse to bring down the top rate. more middle-class and poor citizens figured it out, even if the reporters did not. (Greider) Two years into Rea gans presidency, the United States experienced its worst recession since the Great Depression, with unemployment peaking at 10.8 per cent. Rather than take responsibility, Reagan attempted to blame the 1982 recession on his predecessor, Jimmy Carter. -Ronald Reagan, nationally televised campaign speech, October 24, 1980-(federal deficits totaled 252 billion under Carter. By the end of the Reagan presidency, federal deficits would total $1.4 trillion. azoic in his presidency, Reagan chose as his economic advisors a group that espoused a radical economic theory called supply-side. The supply siders told Reagan that if he gave tax cuts to the top brackets (the wealthiest individuals) the positive effectuate would trickle down to everyone else. Tax cuts they argued, would produce so much growth in the economy that America could just outgrow its deficits. Reagan bought into the supply side theory, which is wherefore in 1981 he predicted that there would be a drastic