The effect of Reagan’s economic policies Flashcards
What economic theory was Reagan influenced by?
Supply-side economics
How much did travel expenses have to be cut by for members within the White House when Reagan first took office?
15%
What were Reagan’s main areas of focus for his economic policies?
Cutting the Federal deficit; tax reductions; deregulation; control of money supply
What was the aim to decrease the federal deficit to by 1986?
22% in 1981 to 19% in 1986
When was the Omnibus Reconciliation Act?
13 August 1981
What changes were made to the Omnibus Reconciliation Act by Congress?
The cut in personal tax went from 30% to 25%
When was the Economic Recovery Tax Act passed?
13 August 1981
What were the provisions of the Economic Recovery Tax Act?
Marginal tax cut by 23%; highest tax band fell from 70% to 50%; lowest tax band fell from 14% to 11%
When was Reagan’s Executive Order to set up the President’s Economic Policy Advisory Board?
2 March 1981
When was Reagan’s Executive Order for setting up the President’s Commission on Housing?
16 June 1981
When was the Tax Equity and Financial Responsibility Act passed?
3 September 1982 (tightens up the tax rules, raised taxes on cigarettes and telephone service)
When was the Consolidated Omnibus Budget Reconciliation Act passed (COBRA)?
7 April 1986
When was the Tax Reform Act passed?
22 October 1986
What was the Unemployment rate in 1980 and 1983?
1980= 7.1% and 1983= 9.6%
What was inflation in 1979, 1980 and 1982?
1979= 11.3%, 1980= 13.5% and 1982=6.2%
What was Output per worker per hour in 1981 and 1983?
1981=1.6; 1983=4.5
What was the Government deficit in 1980 and 1983?
1980= $59 billion and 1983= $208 billion (14% of federal spending in loan interest payments)
What was the percentage of government spending on human resources in 1980 and 1987?
1980= 28% and 1987= 22%
What was the percentage of government spending on defence in 1980 and 1987?
1980= 23% and 1987=28%
What did George HW Bush promise in his campaign, yet do in his presidency?
Raise taxes
What were Clinton’s areas of economic focus?
Low inflation; high employment; reduced deficit; no tariffs to regulate trade and business
What were Clinton’s three campaign points?
Address medical care; bring change; ‘the economy, stupid’
