Milton Freidman and the Reagan Revolution Flashcards
What did Milton Friedman advocate?
Advocated for limited gov’t role in economics
What three factors led to Carter’s defeat to Ronald Reagan in 1980?
Economic problems
Iran Hostage Crisis
Increased Cold War tensions
What were the aims of the ‘Reagan Revolution’?
Tax cuts
Balanced budget
Decreased spending
Build up military
What was the theory behind ‘Supply Side’ economics?
Cutting taxes would lead to improved economic activity which would bring in more economic
What was the budget impact of President Reagan’s policies?
It cut programs for the poor
What were the key ideas behind Milton Friedman’s economic philosophy?
Monetarism: He believed that the government should manage the supply of money, to stimulate the economy, but then step back and let the market do its thing
Economic freedom=political freedom
How influential were his views in the 1960s?
Monetarism caught on for many Democrats
His ideas on the small role of gov’t in public life were less liked
How influential have they been since 1980?
They have been influential in Latin America
The International Monetary Fund and World Bank have put his policies in many places around the world
What are criticisms of his views today and what is driving them?
In places in Latin America, the poor remained poor which lead to the leadership of Hugo Chavez
Allan H. Meltzer thought that 2008 was a time when there was too heavy of gov’t regulation, and Friedman’s ideals should have been followed
