THE RISE OF POLITICAL CONSERVATISM 1980 1992
REAGANOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Increased taxes on the wealthy
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Decreased unemployment
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Decreased government spending
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Lower inflation
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Increased income due to tax cuts.
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Detailed explanation-1: -During the Reagan administration, real GDP growth averaged 3.5%, compared to 2.9% during the preceding eight years. The annual average unemployment rate declined by 1.7 percentage points, from 7.2% in 1980 to 5.5% in 1988, after it had increased by 1.6 percentage points over the preceding eight years.
Detailed explanation-2: -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-3: -Over the eight years of the Reagan Administration: 20 million new jobs were created. Inflation dropped from 13.5% in 1980 to 4.1% by 1988. Unemployment fell from 7.6% to 5.5%
Detailed explanation-4: -Reagan’s policies were effective in spurring the economy by decreasing both unemployment and inflation. His massive spending—especially defense/military spending—-, however, caused a huge increase in the federal budget deficit.