Reagan US HISTORY FINAL

America in 1980 (5)

• High inflation (prices rising rapidly).

• High unemployment.

• Slow economic growth ("stagflation").

• Energy shortages and economic uncertainty.

• Many Americans felt the government was ineffective.

Supply-Side Economics (Reaganomics)

• Cut taxes, especially for corporations and wealthier Americans.

• Reduce government regulations.

• Encourage investment and production.

Reaganomics outcome

• Businesses expand.

• More jobs created.

• Economic growth benefits everyone ("trickle-down economics"). didnt work

Criticism of Reganomics

• Increased national debt.

• Benefits often went more to wealthy Americans.

• Income inequality increased.

Demand-Side Economics

Main Idea

• Increase consumer spending to stimulate the economy.

Methods

• Government spending programs.

• Assistance to lower- and middle-income Americans.

• Job creation through public projects.

Supporters / critics of Demand-Side Economics

for it

• Many Democrats.

• Labor unions.

Aginst it

• Conservatives who oppose large government spending

Reagan's Beliefs (3)

• Government should play a smaller role in the economy.

• Lower taxes encourage growth.

• Free-market solutions work better than government intervention.

Uncle sam

Represents the United States government.

Donkey

• Democratic Party.

Elephant

Republician

Bear

• Soviet Union/Russia

Pig

• Greed, corruption, wasteful spending, or special interests.