How Did Reagan's Economic Policy Strengthen Us Economy

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How far do you agree with the view that Reagan 's economic policies strengthened the US economy in the years 1981-96?
There is evidence to suggest that Reagan 's economic policies did strengthen the US economy, as shown by the decrease in inflation and unemployment. However, there is sufficient evidence to suggest that Reagan 's policies didn 't benefit the US economy and led the US into economic problems.
Extract 1 tells about how Reagan 's economic policies did have certain benefits. His cutting of taxes by twenty five percent across-the-board did mean that more people in the US had more money at their disposal. Less taxation resulted in a significant growth in consumer confidence, and a notable credit boom. These benefitted the US as it
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These 'newly created jobs did not pay well '. Due to deregulation, businesses could set their own wages for people, which sometimes resulted in wages being lower than the minimum wage set before deregulation. Even though unemployment decreased, those people in part-time jobs ended up with less money than they should have earned because of the government cutting welfare. The increase in welfare and government help for the poor resulted in a large influx of newly homeless people in America. This was a severe danger to the US economy as it meant people had less confidence in it and it also meant the government needed to spend more of its money on helping the number homeless people that continued to increase in …show more content…
Bush had to increase taxes, and Clinton had to take away spending from defence. Extract 2 mentions how the US 'ran huge trade deficits throughout the Reagan years '. Due to Reagan 's spending on defence, the US were placed in a debt of $2.6 trillion. This debt may have been a main cause in the recession in Bush 's presidency. Reagan 's economic policies did not help wealth return to the country, this means that Reagan 's economic policies did in fact lead to a major issue in the US 's economy, just as the critics from the 1980s

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