Reaganomics PDF

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About the Ronald Reagan's plan named Reaganomics in the past...

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Tran Le Cassandra O’little AMH 2020 March 31, 2020 Reaganomics 1. Define what is meant by the term “Reaganomics.” -

Reaganomics is a popular term referring to the economic policies of Ronald Reagan, the 40th U.S. President (1981-1989). His policies called for widespread tax cuts, decreased social spending, increased military spending, and the deregulation of domestic markets. These economic policies were introduced in response to a prolonged period of economic stagflation that began under President Gerald Ford in 1976.

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The term Reaganomics was used by both supporters and detractors of Reagan’s policies. Reaganomics was partially based on the principles of supply-side economics and the trickle-down theory. These theories hold the view that decreases in taxes, especially for corporations, offer the best way to stimulate economic growth. The idea is if the expenses of corporations are reduced, the savings “trickle down” to the rest of economy, spurring growth. Prior to becoming Reagan’s vice president, George W.H. Bush coined the term “voodoo economics” as a proposed synonym for Reaganomics. https://www.investopedia.com/terms/r/reaganomics.asp

2. Define “trickle down.” -

Trickle-down economic theory is similar to supply to supply-side economics. That theory states that all tax cuts spur economic growth.

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Trickle-down theory is more specific. It says targeted tax cuts work better than general ones. It advocates cuts to corporations, capital gains, and saving taxes. It doesn’t promote across-the-board tax cuts. Instead, the tax cuts go to the wealthy. The benefits trickle down to everyone else.

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Both trickle-down and supply-side proponents use the Laffer Curve to prove their theories. Arthur Laffer show how tax cuts provide a powerful multiplication effect. Over time, they create enough growth to replace the government revenue lost from the cuts. The resulting expanded, prosperous economy provides a larger tax base.

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But Laffer warned that this effect works best when taxes are in the “Prohibitive Range”. This range goes from 100% tax rate down to an unspecified rate of around 50%. https://www.investopedia.com/terms/r/reaganomics.aspFind and insert an editorial cartoon that explain how “trickle down” “works” ( or doesn’t work )

3. Find and insert an editorial cartoon that explains how "trickle down" "works"

http://www.cartoonistgroup.com/subject/The-Trickle+Down-Comics-and-Cartoons-by-Clay+Bennett %27s+Editorial+Cartoons.phpUsin

4. Using a minimum of 2 additional sources, which you list, determine if trickle down has been proven to work -

https://www.washingtonexaminer.com/trickle-down-economics-really-does-work

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https://money.howstuffworks.com/trickle-down-economics.htm...