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assessing reagans economic policy - Coggle Diagram
assessing reagans economic policy
control government spending
success
failures
US debt quadrupled to $208billion by 1983 , taking 14% of federal spending to pay off
1986 , national debut $2trillion , 3rd largest expense in federal budget
high spending on defence
less government income after tax cuts
federal budget deficit increased to 5x that of previous presidents
interest paid on government debt increased from 71bn to 150bn
decrease government involvement in the economy
success
removed price controls on oil and natural gas, causing production increase and a decrease in the price of oil
failures
cut taxes
successes
failures
increase productivity
successes
real GNP grew by 11% by 1984
failures
reduce government spending
successes
total federal spending declined to 21.25 of GDP by 1989
failures
create jobs
successes
unemployment was low by the end of reagan's time in office
unemployment drops by 45% from 1982 to 1987
20 million new jobs created
failures
unemployment rose from 81 to 83
11,000 unemployed in 1983
those considered "unemployable" not counted in unemployment statistics, 34% of population unemployable by 1988
reduce inflation
successes
inflation reduced from 13.5% in 1980 to 3.2 by 1983.
inflation at 4.7% in 1989
failures
increase peoples wealth
successes
1.3 americans on average were millionaires with all their assets counted
number of millionares doubled from 1979 to 1989
tax paid by bottom 50% fell from 7.5% to 6.4%
price of oil declined by 50% after government control removed
disposable income increased by 18% from 1982 - 1989
poverty rate decreased consistently through 1984 - 1989
reagan recovery lasted 92 monthly without a recession until 1990
economy grey by 1/3 during reagan recovery
failures
severe recession
wages stagnated through 1986
most wealth increases were for the already rich
taxes paid by rich rose from 18% to 26%
reagan was opposed to a minimum wage
low income families wages decreased by 8%
half of US families maintained their standard of living through the 80s'
child poverty increased