Also referred to as supply-side economics
. The basic idea of Ronald Reagan
's economic policy can be outlined by the following points:
Did any of this happen? Certainly not on Reagan's watch--then we had record budget deficits
and the gap between rich and poor widened more quickly, and the arts
suffered. In the 90's most of that was reversed
, we're now running huge surpluses
, and although the gap between rich and poor continued to grow, it may finally be closing. It's clear that the economic growth of the 90s is what eliminated the budget defecits--not any tinkering done with the tax rates.
Why did the economy grow in the 1990s? I don't think it was Reaganomics, but I can't be sure. You see, it may take 10 years for a president's economic policy to take effect. If so, then Reaganomics worked, even though it messed things up badly short-term; if it doesn't take that long, then Clinton gets the credit. You decide.