1. REAGANOMICS

2. Introduction
Reaganomics refers to the economic policies promoted by United States President Ronald Reagan during the 1980s.
By the help of Reaganomics President Reagan was able to abate high inflation and unemployment.

3. Four Pillars of Reaganomics
Reduce the growth of government spending.
Reduce marginal tax rates on income from labor and capital.
Reduce government regulation of the economy.
Control the money supply to reduce inflation.

4. Social Composition It trapped the poor. Increased crime rates.
Low skilled workers lost there jobs.
Many people became homeless.
Reaganomics gets the blame for social woe like:
Mr. Reagan single handedly created an army of homeless,
it trapped the poor,
increased crime rates,
reduced low-income housing,
put low- skilled workers out of jobs,
deprived the needy of medical care,
increased hunger in urban and rural slums,
And many other problems which was faced in initial years of Reaganomics.

5. Economical Composition
Oil windfall profit tax was lowered and later on removed.
Income tax rates of the top personal tax bracket dropped from 70% to 28% in 7 years.
Unemployment peaked at over 10.7% percent in 1982 but later dropped.
There was net job increase of about 16 million.
Government spending rose by 80%
Social Welfare outlays rose by 70%
During Reagan's tenure, He lifted remaining domestic petroleum price and allocation controls on January 28, 1981 and lowered the Oil Windfall profits tax in August 1981, helping to end the 1979 energy crisis. He ended the Oil Windfall profits tax in 1988 during the 1980s oil glut, income tax rates of the top personal tax bracket dropped from 70% to 28% in 7 years, while social security and medicare taxes increased. Real Gross Domestic Product (GDP) growth recovered strongly after the 1982 recession and grew during Reagan's remaining years in office at an annual rate of 3.4% per year, slightly lower than the post-World War II average of 3.6%. Unemployment peaked at over 10.7% percent in 1982 then dropped during the rest of Reagan's terms, and inflation significantly decreased. A net job increase of about 16 million also occurred (about the rate of population growth).

6. Political Composition
Supply-side economics movement produced some of the strongest supporters for Reagan's policies.
Before election Reaganomics was considered extreme by moderate wing of the Republican party.
Gerald Ford severely criticized Regan’s proposal to turn large part of Federal budget to states.
After Reagan’s presidency Republican federal politicians have continued to keep low taxes and private sector growth.
In his 1980 campaign speeches, Reagan presented his economic proposals as merely a return to the free-enterprise principles that had been in favor before the Great Depression. At the same time he attracted a following from the supply-side economics movement, formed in opposition to Keynesian demand-stimulus economics. This movement produced some of the strongest supporters for Reagan's policies during his term in office.
Before Reagan's election, Reaganomics was considered extreme by the moderate wing of the Republican Party.[Similarly, in 1976, Gerald Ford had severely criticized Reagan's proposal to turn back a large part of the Federal budget to the states. Since Reagan's presidency, however, Republican federal politicians have for the most part continued to support his program of low taxes and private sector growth.

7. Result of Reaganomics
The American economy performed better during the Reagan years.
Interest rates, inflation, and unemployment fell faster under Reagan.
The only economic variable that was worse in the Reagan period was the savings rate.
According to a 1996 study from the libertarian think tank Cato Institute:
1. On 8 of the 10 key economic variables examined, the American economy performed better during the Reagan years than during the pre- and post-Reagan years.
2. Interest rates, inflation, and unemployment fell faster under Reagan than they did immediately before or after his presidency.
3. The only economic variable that was worse in the Reagan period than in both the pre- and post-Reagan years was the savings rate, which fell rapidly in the 1980s.

8. Thank You