7/29/2019 UOPX WK7 HIS135 Checkpoint Reagan Economics

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Reagan believed that it was time to restore traditional religious and family values, patriotism, and

a more limited role for government. These beliefs generated new policies that affected the

American people for decades to come. Reagan’s policies were known as Reaganomics in later 

years. The policies made the following changes:

  Income tax rates of the top personal tax bracket dropped from 70% to 28% in 7 years.  Social security and Medicare taxes increased. (Wikipedia, 2009)

  Real Gross Domestic Product (GDP) growth recovered strongly after the 1982 recessionUnemployment peaked at over 10.7% percent in 1982 then dropped during the rest of Reagan's terms. (Wikipedia, 2009)

  Inflation significantly decreased.

  A net job increase of about 16 million also occurred (about the rate of population

growth). (Wikipedia, 2009)

  Real median family income grew by $4,000 during the Reagan period after experiencing

no growth in the pre-Reagan years; it experienced a loss of almost $1,500 in the post-

Reagan years. (Wikipedia, 2009)  The American economy grew by more than a third in size, producing a $15 trillion

increase in American wealth. Every income group, from the richest, middle class and

 poorest in this country, grew its income (1981-1989).(Niskanen, 1993)

  Incorporated the realization that immigrant workers are a key and vital component of the

US economy.

  Productivity in the manufacturing sector increased at a 3.8 percent annual rate.

(Wikipedia, 2009)

Reference

Wikipedia contributors (2009, October 10). “Reaganomics” In Wikipedia, The Free

 Encyclopedia.. Retrieved October 13, 2009, from

http://en.wikipedia.org/w/index.php?title=Reaganomics&oldid=320669256 

William A. Niskanen (1993). "Reaganomics." The Concise Encyclopedia of Economics.. Library

of Economics and Liberty. Retrieved October 13, 2009 from

http://www.econlib.org/library/Enc1/Reaganomics.html