Reagan Case

Reagan Analysis Paper

President Ronald Reagan was the 40th president of the United States. During his time in office some of the American people loved him where as others despised him. However, it is important to understand that he was underrated even though he had outstanding economic policies, he helped end the Cold War and he pressed through an assassination attempt.

Ronald Reagan came into office in 1981, in his first term he had already began to adopt different contractions such as stagflation. This is a combination of double-digit financial contraction put into place to control recession. Reagan cut income taxes from seventy percent to twenty eight percent, which is a forty- two percent drop for the American people. Included into this strategy, he also made low government budget projection in order to reduce money supply and the rise in inflation. These particular practices are known as Reaganomics. These economic theories/ policies were based upon the supply side of the economic theory. In this theory in states “that tax cuts embolden economic growth that ultimately broadens the tax base.” (Sindani,2013). The increase revenue from a stronger economy balances the last revenue through tax cuts. These tax cuts were favorable to both citizens and the government. In the years to come they were recognized by a stronger economy that eventually made the economic center. Reagan also eliminated the Nixon- era of the price controls. These to affect the free market equilibrium and leading to inflation. However, Reagan took off all controls on gas, oil, cable television and phone services. Reagan also entered that interstate bus service and ocean shipping were free of any price controls. His plan was very strategic to boost and improve the economy. Included in Reagan’s plan he eased bank regulations. Loan to value ration restrictions were removed. With this policy in place it allowed banks to venture into risky real estate ventures. The saving and loan crisis of 1989 was a result of Reagan deregulation and budget cutting. Inventors went through serious regulations and free market operations were under strict monitoring (Cannon & Beschloss, 2001). In the end Reaganomics and regulations are responsible for the stability of the economic state of the United States.

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