6. Ronald Reagan

What were the successes of reaganomics?

* Reduced inflation from 13.5% to 4.7%
* Reduced unemployment from 7% to 5.4%

Productivity in business and manufacturing sectors increased during this time

were the highest level for peacetime ever.

Returned back to a Laissez-Faire approach like the passives

by increasing taxes for the poor he created a even bigger disparity between the rich and poor.

Supply-Side Theory

Similar to Kennedy’s belief that tax cuts would lead to more spending which would lead to more sold goods

SDI

A space-based missile defence system - significant turning point as it was used by Reagan to bring about an end to the war. Represented a significant escalation of arms race.It us cited as a factor in the eventual collapse of the USSR, bringing an end to Cold War

INF

the first arms control pact to require an actual reduction in nuclear arsenals rather than merely restricting their proliferation. It was the beginning of the end of both the Cold War and the Soviet Union, liberating the peoples of Eastern Europe

Impact of Reagan's Foreign Policy

The US were left as the largest global superpower with the largest economy and military in the world