Question

Describe Reagan’s economic policies and the trends of the economy during the 1980s. Identify the groups that supported Reagan in his two presidential victories in 1980 and 1984.

Answer 1

When Reagan came to power the economy was in Staginflation which means double digit economic contraction and double digit inflation. So during 1980, the American economy was in deep recession. .Reagan's economic policies were cutting down income taxes from 70%to 28%for top tax bracket in order to control recession.Corporate tax rate was reduced from 48% to 34%. He reduced government spending and business industries were deregulated.He removed controls on oil and gas ,cable television ,long distance phone service and also deregulated interstate bus service and ocean shipping.He also asked the Federal reserve to reduced the supply of money to control inflation.Reduction of taxes led to growth of GDP and unemployment was reduced.Reagan reduced domestic spending but increased defense spending to achieve peace.

The Democrats voted for Reagan in 1980 and 1984 which led to his landslide victory.They were white socially conservative blue collar workers who lived in the North east and were influenced by Reagan's social conservatist policy on certain problems like abortion and were also impressed by his foreign policy .