Reaganomics Sources for your Essay

Reaganomics Did Not Help Revitalize


Reaganomics, which was firmly rooted in increasing private capital, stimulated economic growth by offering investment incentives but only during the early years of the administration (Kiskanen). Moreover, deregulation "was clearly the lowest priority among the major elements of the Reagan economic program," (Niskanen)

Reaganomics vs. New Deal This


S. GDP declined 27% from 1929 to 1932 and industrial production dropped 46% (Aiginger, 2010)

Reaganomics vs. New Deal This


However, other aspects of the New Deal have been criticized for slowing the pace of recovery. In particular, the National Industrial Recovery Act of 1933, which featured price setting, wage setting was noted for its poor impacts, which included providing disincentive for firms to hire and increased costs for consumer goods (Bandyk, 2008)

Reaganomics vs. New Deal This


Reagan's economic platform aimed to restore a balanced budget and bring down the size of government. His platform contained four key principles: lower taxes, control of spending, reduction of regulation and lowering inflation (Brokaw & Thompson, 2004)

Reaganomics vs. New Deal This


Monetary expansion by the Fed increased liquidity and created a strong investment climate. While unemployment remained high, many other economic indicators recovered under the New Deal, even if not directly attributable to New Deal policies (Cole & Ohanian, 2009)

Reaganomics vs. New Deal This


GDP declined 27% from 1929 to 1932 and industrial production dropped 46% (Aiginger, 2010). Gross domestic investment dropped from $16 billion to $1 billion and stocks declined to just 15% of their peak value (Edsforth, 2000)

Reaganomics vs. New Deal This


Social security taxes increased as well, delivering a net increase in taxes. Overall, Reagan failed to implement effectively most of his own economic platform (Rothbard, 2004)