new directions in economic policy Flashcards
what was unique about regan as a president?
how did this effect his economic policy?
was a hollywood actor - was seen as a good communicator and reputation as a good public speaker
at height of his actor career 91% of his income was taken by taxes
became a big opponant of taxation and proponant of supply side economics (reganomics)
wanted:
* low taxes
* low welfare payments
* less crime
* less “big government”
what was Regan’s view on the Great Society?
why culdnt he do what h really wanted with it?
was very agaisnt it
conservatives wanted a total demolition of welfare nets
couldnt dismantle it but wanted to reduce it
relied on elderly voters
they relied on socail security and medicare so getting rid of these provisions would be socail suicide
how did regan’s 1981 polcies effect average families
spring 1981
* reduce budget of 212 federal programes
* reduced the benefits offered by Aid to Families with Dependant Children
* 13 million poor children (1984) Relied on this (also mostly single mothers/black mothers) #
Regan increased the gap between the poor and rich
how did Regan’s policies effect the working class?
- opposed minimum wage and increasing it - widened rich/poor gap
- hostile to uninons - 1981 strike (air-traffic controllers) fired all striking workers, national strikes reduced as companies coppied this
- rulings made it harder for oppressed groups to fire companies for discrimination
what was the congressional and public resisstance to rRegans policies?
congress
* uncoopertative in reducing government
* almost all gaint the reduction of social security
* post 1981 many of his budgets were rewritten
public
* americans vlued social security
* regan forced ti leave many medicare and veteran services alone
what were the major economic successes and failures under Regan?
sucesses
* increased defense expenditure made those areas prosperous
* 1980s had largest period of economic growth - inflation fell 13.5% - 4.7%
* unemployment fell and 16 million jobs created
failures
* lowered top rate of tax to 28% and raisedbottom to 15% - more burden on the lower class
* tax and benfit cuts led to budget deficits that dispropotionatley effected workers and families
what caused the growth in a trade deficit under reagan?
- grwoth in consumer spending
- growth of discount stores such as walmart
- stores produced cheap and high-quality god so were popular
- many of the good were manufactured cheaply abroaf which helped the increased loss of american manufacturing jobs
- deficit went up to $150billion a year by late 80s
- americans spent $2million more on imported good than foreign countries on american goods
how did the government adress the trade deficit? how well did it work?
- convinced japanese manufacturers to limit exports to usa
- japanese opened manufacturing plants in the usa
- imposed 255 tarriff on imported trucks
didnt work very well and deficit kept growing
americans accused ja[an of economically attacking the usa as japanese deficit grew to $50 million
how did reagan weaken the economy?
- huge national debt to japan and germany
- trippled nationn debt an dincreased all federal expenditures
not only his fault
* americans didnt want to reduce spending on social programmes
* preferred to byu cheap foregn goods
what was reagans economic legacy?
- increased the welfare of some americans
- disproportionatley effected workign families with his policies
- tax payers money needed to bail out oan industries due to his deregualtion of loans
- did little to improve the national debt/trade deficit
