Transcript Reagan’s Economic Policies

Reagan’s Economic Policies
• When Reagan was elected in 1980, he sought to implement
conservative economic reforms
– These reforms depended on the “Trickle-Down” theory in which
assistance provided to the wealthy would improve the economy
as a whole and, eventually, “trickle down” to the poor
– Reagan’s economic policies, called Reaganomics, consisted of
three parts:
• Budget Cuts
– Reagan’s goal was to reduce government spending
– Particularly targeted social welfare programs that aided the poor, left those that
helped the middle class mostly alone
• Tax Cuts
– Reduced taxes by 25% over a three year period
– Most tax reductions went to those with high incomes
– Felt that reducing tax rates would boost the economy so much that actual
government income would not drop
• Increased Defense Spending
– The budget for the Defense Department doubled in Reagan’s first term
– Pushed the Strategic Defense Initiative (SDI), popularly known as “Star Wars,”
whose goal was to shoot down enemy ICBM’s
Unemployment
Guiding Question: Were Reagan’s economic
policies effective?
• Look at the graph of unemployment rates and
come up with a main idea to answer the
guiding question
Debt
Guiding Question: Were Reagan’s economic
policies effective?
• Look at the graph of debt as a percentage of
GDP and come up with a main idea to answer
the guiding question
Debt as a Percentage of GDP
70%
60%
50%
40%
30%
20%
10%
0%
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
Per Capita Income
Guiding Question: Were Reagan’s economic
policies effective?
• Look at the graph of per capita income and
come up with a main idea to answer the
guiding question
Income by Class
Guiding Question: Were Reagan’s economic
policies effective?
• Look at the graph of income growth by
economic class and come up with a main idea
to answer the guiding question
SCR Practice
Guiding Question: Were Reagan’s economic
policies effective?
• Write a topic sentence to answer the guiding
question
SCR Practice
Guiding Question: Were Reagan’s economic
policies effective?
• Write a conclusion to answer the guiding
question