The Success of Reaganomics

Discussion in 'Politics' started by Jroc, Feb 16, 2011.

  1. Jroc
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    Jroc יעקב כהן Supporting Member

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    In August 1981, President Reagan signed the Economic Recovery Tax Act of 1981, which brought reductions in individual income tax rates, the expensing of depreciable property, and incentives for small businesses and incentives for savings. So began the Reagan Recovery. A few years later, the Tax Reform Act of 1986 brought the lowest individual and corporate income tax rates of any major industrialized country in the world. The numbers tell the story. Over the eight years of the Reagan Administration: 20 million new jobs were created Inflation dropped from 13.5* in 1980 to 4.1* by 1988 Unemployment fell from 7.6% to 5.5*

    Net worth of families earning between $20,000 and $50,000 annually grew by 27% Real gross national product rose 26% The prime interest rate was slashed by more than half, from an unprecedented 21.5* in January 1981 to 10* in August 1988 Given actual rates of inflation, through 1987, the Reagan tax cuts saved the median-income two-earner American family of four close to $9,000 in taxes from what it would have owed in 1980.Tax cuts were only one "leg of the stool." The second, jobs, was equally strong. Not only were there millions of new jobs, but also the benefits of job creation were not limited to one segment of society. Employment of African-Americans rose by more than 25% between 1982 and 1988, and more than half of the new jobs created went to women. Taming the lion called government spending was another key component of the plan - the "third leg of the stool." Here, too, President Reagan did what he said he would do. During his Administration, growth in government spending plummeted from 10% in 1982, to just over 1% in 1987. With inflation factored in, Federal spending actually went down in 1987 - the first time that had happened in well over a decade.

    REAGAN FOUNDATION 105R
     
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  2. Jroc
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    Jroc יעקב כהן Supporting Member

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    Reagan raised taxes? the haters always bring this up

    Betryal on tax increases


    Sometimes Reagan went along with a pragamatist like chief of staff James Baker, who persuaded the president to accept the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), which turned out to be the great tax increase of 1982 -- $98 billion over the next three years. That was too much for eighty-nine House Republicans (including second-term Congressman Newt Gingrich of Georgia) or for prominent conservative organizations from the American Conservative Union like the Conservative Caucus and the U.S. Chamber of Commerce, which all opposed the measure.
    Baker assured his boss that Congress would approve three dollars in spending cuts for every dollar of tax increase. To Reagan, TEFRA looked like a pretty good "70 percent" deal. But Congress wound up cutting less than twenty-seven cents for every new tax dollar. What had seemed to be an acceptable 70-30 compromise turned out to be a 30-70 surrender. Ed Meese described TEFRA as "the greatest domestic error of the Reagan administration," although it did leave untouched the individual tax rate reductions approved the previous year. (TEFRA was built on a series of business and excise taxes plus the removal of business tax deductions.)
    The basic problem was that Reagan believed, as Lyn Nofziger put it, that members of Congress "wouldn't lie to him when he should have known better." As a result of TEFRA, Reagan learned to "trust but verify," whether he was dealing with a Speaker of the House or a president of the Soviet Union.


    http://www.reagansheritage.org/html/reagan_edwards12.
     
  3. Jroc
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    Jroc יעקב כהן Supporting Member

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    Defict


    Well, let’s take a look at the Reagan legacy on federal spending and deficits. In 1980, the last year of Jimmy Carter’s presidency, government outlays were running at 21.7% of GDP and the budget deficit was 2.7% of GDP. (The economy was also a basket case, which is when you would expect budget deficits to be at their worse.) In 1988, Reagan’s last year in office, outlays as a percent of GDP were running at 21.3% with a deficit of 3.1% of GDP. The budget deficit over Reagan’s eight years averaged 4.2% and ran as high as 6.0% in 1983.
     
  4. uscitizen
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    uscitizen Senior Member

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    Regan may have reduced the tax rates, he however did away with lots of deductions on personal income tax so it was a net tax increase.
    I was there I know.
     
  5. uscitizen
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    uscitizen Senior Member

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    Lets talk absolutes ie dollars not %gdp crap.
     
  6. Jroc
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    Jroc יעקב כהן Supporting Member

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    :lol: you're clueless check again
     
  7. Jroc
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    Jroc יעקב כהן Supporting Member

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    Percentage of GDP is what counts, you're not too bright when it comes to ecomomics are you? Gross National product is higher, there is more wealth that has been created. Get it?
     
  8. Jroc
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    Jroc יעקב כהן Supporting Member

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    Last edited: Feb 16, 2011
  9. JFK_USA
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    JFK_USA Gold Member

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    Or lets go with Growth of National debt. Reagan grew the national debt by 189%!!!! So much for a fiscally conservative president. But I guess pin the debt tail on the donkeys.
     
  10. shintao
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    shintao Take Down ~ Tap Out

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    Lets give Reagan a hand, and cut the government by 98%. Just keep the IRS & 40% tax rate & send congress home until we have paid off our mounting debts. I am not afraid to take responsibility for myself & family for four years without government. Bring it on.
     

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