The economy grew 4.6 percent in 1983, and this growth helped create about fourteen million jobs, reducing unemployment rates (Amadeo). Reagan based his policies on “supply side economics” which says that tax cuts cause economic expansion, however, this only works if the taxes were high to begin with. Reagan’s first tax cuts were very successful, however the 1986 and 1987 tax cuts were less effective because the initial tax rates were lower (Amadeo). During Reagan’s presidency in 1982-1989 the Gross Domestic Product increased 3.6 percent due to these tax cuts (Lewis). Reagan removed controls on cable television, gas and oil, and long distance phone calls. His budget cuts and deregulation contributed to the savings and loan crisis of 1989. Reagan cut domestic spending by thirty-nine billion dollars, however he increased defense spending in order to save the United States from communism and the Soviet
The economy grew 4.6 percent in 1983, and this growth helped create about fourteen million jobs, reducing unemployment rates (Amadeo). Reagan based his policies on “supply side economics” which says that tax cuts cause economic expansion, however, this only works if the taxes were high to begin with. Reagan’s first tax cuts were very successful, however the 1986 and 1987 tax cuts were less effective because the initial tax rates were lower (Amadeo). During Reagan’s presidency in 1982-1989 the Gross Domestic Product increased 3.6 percent due to these tax cuts (Lewis). Reagan removed controls on cable television, gas and oil, and long distance phone calls. His budget cuts and deregulation contributed to the savings and loan crisis of 1989. Reagan cut domestic spending by thirty-nine billion dollars, however he increased defense spending in order to save the United States from communism and the Soviet