A fix to the unemployment and inflation of the time.
ELECTING RONALD REAGAN…TWICE
Ronald Reagan for Reagan/Bush '84
Ronald Reagan TV Ad: "Reaganomics"
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 Mondale’s 40.6%. (This was Reagan’s Second Term)
-time before Reagan’s 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
-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
This Cartoon Shows the differences between Reaganomics and FDR’s economic policies like the New Deal.
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
-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)