Republican Dominance and Its Opposition Flashcards
What was unemployment?
8 million
How much did unemployment jump in April 1980?
Almost a full percentage - 825,000 workers in the streets
What was inflation in 1979?
13%
What was inflation in 1980?
12%
What did people have to do to maintain their living standards?
Work harder and harder
What did cost of borrowing money increase to?
20%
What did spiralling interest do?
Hurt everyone - house mortgages etc.
What was the state of wages?
Hourly compensation for American workers at its lowest in almost two decades
What was the federal budget deficit at in 1980?
$80 million
What was the national debt?
$1 trillion
What did Reagan cut?
Welfare spending - arbiter of small government
Why was small government popular?
Watergate scandal hangover - no trust in big government
What economic theories did Reagan use?
Supply-side economics and trick down economics
What did Reagan believe?
The USA was not productive due to high levels of tax - so taxes were cut and productivity increased.
Where were the cuts?
Government spending, income and capital gains taxes, business regulations and expansion of money supply
Who led the Programme for Economic Growth?
David Stockman
What did investments lead to?
New factories and products and therefore more workers
What created a demand for goods?
Workers having more personal income
How much was public spending cut by?
$35 billion
What declined?
The misery index
What happened to GDP?
Increased to the second best in recent history
What did Reagan lower?
Interest rates - wall street boom with investments
What % of its workforce did the Office Surface Mining lose between 1981 and 1982?
40%
What was the growth in real GNP?
11%