Reaganomics

Supply-side economics:

When Reagan started his economies program called ergonomics, his main goal was to boost business growth. An English economist named John Maynard Keynes started the idea. He thought that the government could improve the economy by giving people money either directly, through the government’s payment program or indirectly, by creating jobs. Reagan then changed the idea and called it supply-side economics. This plan focused on the supply of goods instead of demand of goods. This would then lower the taxes on products and put more money in the American people.



Cutting taxes:

During Reagan's term, he paid a lot of detentions on tax cut. First, a 5% cut, then it increased to 10% cut. Later, the Congress passed a tax reform that allow some people to avoid paying their fair share of taxes. Its system is to determine how much tax a person should pay. The effect of this tax form was tax rate dropped from 70% before Reagan took office to 50%, later was 28% during his term.

changing the government

Regan wanted to eliminate government regulations that e believed stifled free market competion. Government regulation grew during the progressive era of the early 190’s an the new deal years of the 1930’s. regulation was intended to protect companies from unfair competion, workers from unsafe working conditions, and consumers from ineffective products. Regal thought regulations made life difficult for producers, which lead to fewer jobs for workers, and higher prices for consumers.

[|Changing the Government]

farm crisis

The farm crisis was when farmers started making more then enough grain to feed America due to new and better farming equipment the made farming easier. Because the over numbering of the grain the price went down as well as demand making it more difficult to make a money and a living on their ability to make food. The lack of money put farmers in debt to the banks that took more of their land to pay off the debts.

[|Farm Crisis]