Reaganomics are the increase of producing goods in America, It was mostly a supply-side economics. Supply-side economics is defined as the investment in productive enterprises. In theory this new way of investing would lead to the taxation of the the wealthy and enterprises were to be lowered. And then the profits from the lower taxes would help the production expanse. Because of the support from the people and having the control of the Republican Senate Reagan had proposed the Economic Recovery Tax Act. The ERTA was a massive tax cut that supported the supply-side act. The common persons tax level fell by about 7 percent were as the rich went from 70 to 50 percent tax, the new tax act was an improvement for the government spending. But when
