The administration also hoped that by cutting the taxes of big-time businessmen would allow them to devote more of their paycheck to providing the investments that most small businesses need. In order for supply side economics to run smoothly, the wealthier class must make smart business investments to help the economy grow. But the one problem with this policy is that it was based solely on the wealthy peoples willingness to invest. If they did not then the policy would fail dramatically. The Reagan administration policy would not stand without people’s willingness to invest, which would lead to many devastating outcomes. Sure enough, the wealthy class’s decision not to invest sent the economy into a downward spiral. Leading to high unemployment of the middle and lower class and the economy’s activity slowed drastically. Ultimately leading the country in to a
The administration also hoped that by cutting the taxes of big-time businessmen would allow them to devote more of their paycheck to providing the investments that most small businesses need. In order for supply side economics to run smoothly, the wealthier class must make smart business investments to help the economy grow. But the one problem with this policy is that it was based solely on the wealthy peoples willingness to invest. If they did not then the policy would fail dramatically. The Reagan administration policy would not stand without people’s willingness to invest, which would lead to many devastating outcomes. Sure enough, the wealthy class’s decision not to invest sent the economy into a downward spiral. Leading to high unemployment of the middle and lower class and the economy’s activity slowed drastically. Ultimately leading the country in to a