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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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Interest rates, inflation, and unemployment fell faster under Reagan than they did immediately before or after his presidency. The only economic variable that was lower during period than in both the pre-and post-Reagan years was the savings rate, which fell rapidly in the 1980s.
Detailed explanation-2: -Trickle-down economics is a term used in critical references to economic policies to say they disproportionately favor the upper end of the economic spectrum, i.e. wealthy investors and large corporations.
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: -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%