The theory behind Reaganomics

A detailed Summary of The theory behind Reaganomics

The theory behind Reaganomics was sound, but when applied in real life its consequences are still present more than ten years after the fact. The tax cuts applied early in Reagan's first term cemented the ideology for what the next eight years of his reign would uphold. The Economic Recovery Tax Act would cut taxes roughly twenty five percent over a three-year period. The ideology of Reagan's administration quickly received supporters of what he was doing. Entailed in these tax cuts were reductions in welfare programs which was also a popular idea amongst Reaganites. But what is puzzling is that David Stockman held a large portion of the truth of these tax cuts from Reagan and the public.

What would occur with the ERTA was a substantial deficit. This deficit was not the intent of Reagan. Reagan's intent was that the tax cuts would allow the public to have more money. This additional money which would have otherwi

se been spent on taxes was supposed to be put back in the economy by the people. The ability of people to now spend more on homes, cars and other goods would boost the prosperity of the economy. But Stockman had a theory of his own. He saw that this deficit would force Congress to make cuts of its own on social programs. Stockman with held this information from the public and from Reagan so that when Congress would reallocate funding, it would avoid giving it to social programs.

Although Stockman's intentions for a balanced budget were good, what he did betrayed Reagan and the public. He never had the authority to with hold such pertinent information. If his intents were to maintain a balanced budget, why would he devise a plan for such high tax cuts which would create the most unbalance budget our economy has seen. It seems as if this overly intelligent scholar was attempting to achieve a task that was way out

Some common words found in the essay are:
Reagan Administration, Reagan Reagan's, Tax Act, Reagan Congress, Reagan Era, Robert MacNamara, , David Stockman, House Representatives, William Greider, tax cuts, reagan public, balanced budget, stockman held, social programs, budget director,

Approximate Word count = 626
Approximate Pages = 3 (250 words per page double spaced)

Category: Miscellaneous

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The theory behind Reaganomics

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