Ronald Reagan’s Administration

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Presentation transcript:

Ronald Reagan’s Administration AP US History Unit 8

Election of 1980

Election of 1984

Keneysean Economic Theory A supporter of Keynesian economics believes… Government intervenes in the form of… An economic theory stating that active government intervention in the marketplace and monetary policy is the best method of ensuring economic growth and stability. A supporter of Keynesian economics believes it is the government's job to smooth out the bumps in business cycles. Government intervenes in the form of government spending and tax breaks in order to stimulate the economy, and government spending cuts and tax hikes in good times, in order to curb inflation

Reagan and Economics Results of the election… Reaganomics: Economics Government role Role of God Results of the election: The election of the Regan-Bush Republican ticket of 1981 brought many unprecedented and controversial policies to the US economy. Many of these policies, including Reganomics, still affect our economy as a whole and are still major points of debates today. Reganomics: was based on economics, while including a sense of moral foundations. Government intervention and regulation of the economy were seen as economically harmful and furthermore morally wrong. It was believed that economic affairs should be left to the wisdom of God and his guidance would produce a successful market and economy.

The Objectives of Reaganomics The moral obligation together with “trickle down” economics were the guide to Reaganomics. Objective was to: Laissez faire Rely on… Deregulation Anti-Trust Laws… The moral obligation together with extreme Keynesian theories were the guide to Reganomics. Objective was to: follow a laissez faire attitude (a hands off government policy) Rely on the wisdom of the market, meaning that the market is smart enough to take care of and troubleshoot itself Use a policy of deregulation which would allow companies to make their own economic decisions without the government limiting their choices. Weary of anti-trust laws which did not allow for monopolies

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