HOW ACCURATE IS IT TO SAY THAT REAGANS ECONOMIC POLICY BENEFIT THE RICH

Question 1

P1
P2
P3

Answer 1

YES- - TAX CUTS - P1
- Due to taxation acts the poorest where disproportionaly hit the hardest as they had to automatically pay more showing the rich benefitied as they had to pay less and could keep / maintain their wealth for example…. And explain the impact of that … then example…. Explain benefit on rich…..

YES– CUT BACK WELFARE SPENDING = INCREASED GAP BETWEEN RICH AND POOR - P2
- Pro-business policy - deregulation - P2
Alienated poor and increased divisions e.g.

NO- - Jobs - deference
- Overall economic recovery following crisis - inflation - decrease- SUCCESSES- P3
Reagans role in jobs created more jobs and promoted economic recovery as a whole that benefitted everyone - launched a process of … and stimulated…jobs for all

Question 2

p1 evidence

Answer 2

E1- Economic Recovery Act- Individual and corporate tax cuts-individual and corporate taxes stimulate investment and productions- 1981- benefited the rich rather than the poor- ‘revenue enhancement’ hit the less wealthy hardest

second Economic Recovery Tax Act reduced personal income tax by 25%

E2: tax cuts and defence expenditure led to a budget deficit= great problems for families

The share of the national income of the wealthiest 1% rose from 8% to 15%.
The average income of the poorest decreased by $1,300 per annum.
The number of homeless people increased from 200,000 to 400,000.

=-s increased the gap between rich and poor during the 1980s

Question 3

P2 EVIDENCE

Answer 3

E1: Cut federal spending

• Federal debt stood at $73.8 billion.= ‘Program for Economic Recovery’.
• Cut by $35 billion
• Reduce the size of the Federal government.
• Omnibus Reconciliation Act= cut government spending on approximately 300 federal welfare programmes.- AFDC and food stamp support was cut by approximately 13% between 1981 and 1987. Child nutrition programs were cut by 28%.

= reduction in spending of over $963 billion over the period 1981 to 1987.

E2: Reagans aim of large-scale economic deregulation + pro busniess policies

• opposed minimum wage +obstructed congressional attempts to increase it, = widen gap between rich and poor

-appointed over 400 conservatives to the judiciary= harder for women, minorities, the elderly and the disabled to sue employers over employment discrimination.
= Alienating the poor
and increasing division

Question 4

P3 EVIDENCE

Answer 4

1. ECONOMIC GROWTH= BENEFIT EVERYONE
   - recession in the years 1981 – 83 = DOUBLE DIGIT INFlation
   - Post 1983, the United States experienced is longest-ever period of economic growth in peacetime.
   - 1980 and 1988 inflation fell from 13.5% to 4.7%
   - Real GNP (the rate of growth above inflation) grew by 11% between 1981-4.= one of the fastest growth rates in the US economy since the Second World War

E2:

• Americans - preffer- cheap imports= made in low- wage foreign factories-= loss of manufacturing jobs in the USA
• spent $2 billion more each week on imported goods than foreigners spend on American goods.
• persuaded Japanese manufacturers to voluntarily limit exports to the USA.= opening manufacturing plants in America = jobs to thousands of Americans

-unemployment fell from 7% to 5.2% and 16 million new jobs were created.

= benefitted everyone