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Slide 1

Reaganomics

Reaganomics

A fix to the unemployment and inflation of the time.

Slide 2

ELECTING RONALD REAGANTWICE

ELECTING RONALD REAGANTWICE

Ronald Reagan for Reagan/Bush '84

http://www.youtube.com/watch?v=SDMksN-ZTR4&feature=related

Ronald Reagan TV Ad: "Reaganomics"

http://www.youtube.com/watch`?v=GhgiOSgBEYY

Reagan won 525 electoral votes and 49/50 states leaving Mondale with his only state of Minnesota and 3800 votes.

Reagan received 58.8% of the popular vote to Mondales 40.6%. (This was Reagans Second Term)

(Wikipedia)

(Youtube)

Slide 3

Stagflation

Stagflation

-time before Reagans Administration

-Political pressure results in expansion of money supply.

-Nixon's wage and price controls abandoned

-Under Ford the problems continued, but policy was more prudent.

-federal oil reserves created to ease future short term shocks

-Carter started phasing out price controls on petroleum

(Wikipedia)

Slide 4

Stagflation

Slide 5

Stagflation

Slide 6

Stagflation

Stagflation

-Much of credit for resolution of the stagflation is given to

a three year contraction of the money supply by the Federal Reserve under Paul Volcker to long term easing of supply and pricing in oil during the 1980s oil glut

(Wikipedia)

Slide 7

This Cartoon Shows the differences between Reaganomics and FDRs economic policies like the New Deal.

This Cartoon Shows the differences between Reaganomics and FDRs economic policies like the New Deal.

Slide 8

The Four Pillars

The Four Pillars

Reagan+Economics=Reaganomics

1. reduce govt. spending

2. reduce marginal tax rates on income from labor and capital

3. reduce government regulation of the economy

4. control the money supply to reduce inflation

Reduce government Spending

Reduce Marginal Tax Rates

Reduce govt. Regulation of Economy

Control $ supply to reduce inflation

(Wikipedia)

Slide 9

The Roots

The Roots

-Reaganomics roots in two of Reagan's campaign promises:

1) lower taxes

2) a smaller government

-reduced income tax rates

 with the largest rate reductions on the high incomes

-in a time of battling inflation Reagan raised deficit spending to its highest level since World War II.

(Reeves, 203) (Wikipedia)

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