Reagan's 'Big Government' Reduction

Big Government

Refers to a government with significant control over economic and social issues, often involving high taxation, extensive regulation, and large public spending.

Reduction in Taxation

Reagan's policy of significantly lowering tax rates, including top-level personal tax rates from around 70% to 25% and providing business tax concessions.

Government Spending Reduction

Reagan's actions to reduce government spending, such as sacking White House staff, implementing a federal hiring freeze, and cutting travel expenses by 15%.

Deregulation

The process of reducing or eliminating government regulations on businesses and industries, aimed at promoting competition and efficiency.

Deficit Increase

The rise in the federal deficit during Reagan's presidency, from $59 billion in 1980 to $208 billion in 1983, due to increased borrowing and resistance to spending cuts.

Deregulation Under Carter

Actions taken by President Carter to deregulate industries like airlines, although he also introduced new regulations in other areas like working conditions and the environment.

Financial Risks from Deregulation

The negative consequences of deregulation, including risky financial practices by institutions, leading to unsafe investments, savings losses, and economic crises like the savings and loans industry collapse.

Negative Trade Deficit

A situation where a country imports more goods and services than it exports, resulting in economic challenges like job losses in industries such as textiles due to cheaper foreign imports.

Congressional Block on Deregulation

Instances where Congress prevented full deregulation, like maintaining regulations on environmental issues and blocking the removal of certain industry regulations, limiting Reagan's deregulatory efforts.

Unpopularity of Deregulation

Long-term dissatisfaction with deregulation due to negative outcomes like high air travel prices, service collapses, and businesses prioritizing profits over public welfare.