Reaganomics facts for kids
Reaganomics is a portmanteau word of Reagan and economics created by Paul Harvey. It refers to the economic policies created by U.S. President Ronald Reagan during the 1980s and still widely practiced.
These policies are commonly used with supply-side economics, referred to as trickle-down economics by political enemies and free market economics by political advocates.
The four main ideas of Reaganomics were to reduce the growth of government spending, reduce the federal income tax and capital gains tax, reduce government regulation, and tighten the money supply in order to reduce inflation.
Images for kids
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Inflation and crude oil price, 1969-1989 (pre-Reagan years highlighted in yellow)
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President Ronald Reagan signs the Economic Recovery Tax Act of 1981 at his California ranch.
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Annual percent change in real gross domestic product — 1972 through 1988 (Reagan years in red)
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Civilian unemployment rate during Reagan presidency (highlighted in yellow)
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Both the Reagan Administration and CBO forecast that the Reagan tax cuts would reduce revenues relative to a policy baseline without them, by about $50 billion in 1982 and $210 billion in 1986.
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Trends in US income inequality 1975-2005.
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Budget deficit in billions of dollars.
See also
In Spanish: Reaganomía para niños
