Question

I just need peer response of one paragraph on this discussion post.

Discussions ListView Topic View Thread Discussion 3 80-90 Ryan Pfenning posted Jan 21, 2019 11:25 AM Subscribe In the beginning of the 80s, the US was already in economic turmoil due to the high inflation, interest rates, and a weakened military. On of the things that Reagan proposed was to increase the US's military and bring it back to a superpower. The administration spent billions of dollars to help this come true. Reagan also came up with the Strategic Defense initiative (SDI) which looked into improving missile technology which has now been dubbed "Star Wars: This all effected the GDP because it boosted the national debt to high numbers Reply to Thread Milestone (1).pptx

Answer 1

The mentioned statement is true.

Reagan spent a lot of time and money on building the military power in US. This meant spending all tax money as military expenditure. Although such a move led to increased national debt, as money was also borrowed from foreign countries, but it was found to be helpful and important, as the military powers of US stand out till today and the US economy has established itself as world superpower because of all the efforts put in by Reagan in the past.

Thus, although GDP was severely affected because of national debt buildup by Reagan, its positive impacts can be seen till today.