Reaganomics

Reaganomics is a set of policies that Ronald Reagan came up with to help the state's economy, which had weak economic growth and a high unemployment rate. He ordered limited government expenditure, lower tax rates, lessening of government regulation, and tightening of the money supply as his four main measures. His Reaganomics were quite effective, as evidenced by the fact that the unemployment rate decreased from 7.1% to 5.5 percent.

Among other things, Ronald Reagan's administration saw the top marginal tax rate on individual income drop from 70% to 28%, the corporation income tax rate drop from 48 to 34%, and the majority of the poor were exempted from individual income tax. At an annual rate of 1.8 percent, real GDP per working-age adult increased. This rate was merely 0.8 percent annually during the Carter administration.

A record number of 18.7 million new employment were produced between November 1982, when Reagan's economic initiatives started to take hold, and November 1989, just before he left office. Moreover half of these positions had yearly salaries of over $20,000. A record-breaking $30 trillion worth of products and services were generated throughout this seven-year span, setting yet another milestone. One of the biggest economic booms in American history occurred during peacetime as a result of Ronald Reagan's economic initiatives. Reagan also cut the number of tax benefits and reduced the number of tax brackets to four, simplifying the tax law.