Reagan economy

Inflation, interest rates, unemployment reached what in 1980?

inflation: 13.5%

interest: exceeded 20%

unemployment around 7.1%

by the end of the 1970s, federal spending as a share of GDP stood at..
(measures the total amount of money spent by the federal government on goods and services as a percentage of the country's Gross Domestic Product)

23.5%

Reagan’s economic philosophy:

• supply-side economics

• against governmental interference

• wanted to:

  • reduce big gov

  • cut taxes

  • limit union power

  • promote corporate growth

Who sharply tightened money supply which caused interest rates to..

Federal reserve Chairman Paul Volker

over 20%

Volker’s strategy succeeded in cutting inflation from..

13.5% in 1980 to 3.2% by 1983

by late 1982, the national unemployment rate…

had risen to 10.8%- the highest since the 1930s

in the industrial Midwest- known as the ‘rust belt’- unemployment topped..

15%- 2.5 million manufacturing jobs were lost.

between 1983 and 1989, real GDP grew by almost…
(total value of all final goods and services produced in an economy)

one third, and real GDP per capita rose by 23%
(became known as the Reagan boom’

unemployment steadily declined to…

5.3% by 1989

h

How many new jobs had been created during Reagan’s presidency?

20 million

How much did real per capita disposable income rise by between 1982 and 1989
(purchasing power of an individual)

18%

Reagan carried how many states in the 1984 election?

49/50

defeated Democrat Walter Mondale by margin of 17 million votes

Economic Recovery Tax Act, 1981 (ERTA) reduced income tax rates by..

and lowered the top marginal tax rate from..

25%

70% to 50%

what act reduced the number of tax brackets, cutting the top rate to..

and raising the bottom rates from..

Tax reform act 1986

28%

11% to 15%

how many Americans were removed from the tax polls entirely?

6 million low-income Americans, ultimately meaning they no longer paid federal income tax

The richest 1% saw their effective tax rate drop by..

and the poorest fifth experienced an increase in total tax of..

14.4%

16%