Question

Explain Reaganomics and how it either helped or hurt the economy and the American people.

Answer 1

Reaganomics is associated with supply side economics. President Reagan was behind the formation and implementation of such policy:

• Major tax cuts were announced for corporate sector
• Government Expenditure on social securities schemes decreased significantly.
• Business loans were made available o people.
• Corporate taxes were reduced from 48 % to 34 %.

it helped corporate significantly and profoundly but general public was not benefited in major way. Government reduces expenditure on social securities schemes, so poor sector was hurt by such move of government. it was expected that trickle down effect will work appropriately.