THE RISE OF POLITICAL CONSERVATISM 1980 1992
PRESIDENT RONALD REAGANS FOREIGN POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a huge increase in the national debt
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a huge decrease in the national debt
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income equity improved
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stagflation
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Detailed explanation-1: -Reagan described the new debt as the “greatest disappointment” of his presidency. The federal deficit as percentage of GDP rose from 2.5% of GDP in fiscal year 1981 to a peak of 5.7% of GDP in 1983, then fell to 2.7% GDP in 1989.
Detailed explanation-2: -The “stagflation” and “malaise” that plagued the U.S. economy from 1973 through 1980 were transformed by the Reagan economic program into a sustained period of higher growth and lower inflation. In retrospect the major achievements of Reaganomics were the sharp reductions in marginal tax rates and in inflation.
Detailed explanation-3: -The US experienced mixed consequences. On the one hand, the real GDP improved by 26% (above 1980 figures), from 13.5%, inflation was brought down to 4.1%, and unemployment dropped from 7.6% to 5.5%. But, on the opposite spectrum, the rich became richer. Tax savings were not used for job creation.
Detailed explanation-4: -President Ronald Regan was a staunch believer in supply-side economics, resulting in the name “Reaganomics.” It is also known as trickle-down economics. The intended goal of supply-side economics is to explain macroeconomic occurrences in an economy and offer policies for stable economic growth.