Reagan

• Reagan embraced "Rugged Individualism," fostering an economy where individualistic pursuits thrived
• Reaganism and Reaganomics in 8 Key Points

  1. Return to Laissez-Faire Policies

  2. Anti-Union Stance

  3. Corporate Dominance and Industry Growth

  4. Tax Reduction and Wealth Concentration

  5. Rugged Individualism

  6. Reagan's Background and Charisma

  7. Religious and Conservative Beliefs

  8. Reagan Coalition and Political Landscape
• Reagan sought a return to laissez-faire policies reminiscent of the 1920s Republicans
• New industries flourished, while farming and mining struggled under Reagan's policies
• Reagan was anti-abortion and supported traditional family values, although his attempts to enact conservative laws faced congressional opposition
• Reagan implemented a laissez-faire approach and supply-side economics, emphasizing military spending
• Reagan's popularity surged after surviving an assassination attempt in 1981, showcasing his resilience and determination, which garnered increased public support
• Reagan encouraged financial speculation, leading to stock market crashes
• Both administrations facilitated the rise of big business corporations, leading to industry monopolies
• Reagan emerged at a time of public skepticism and pessimism, emphasizing American resilience and the potential for economic revival
• Reagan's reform plan aimed to cut the federal deficit, reduce personal and business taxes, deregulate, and control money supply
• Reagan was a committed Christian with strong support from conservative Christians
• Reagan faced economic challenges on taking office, including high unemployment, inflation, and business failures
• Reagan's tax cuts contributed to increased personal wealth, with a rise in billionaires and millionaires
• Economic prosperity in 1982-84 was attributed to Reagan's policies, including tax cuts, budget reductions, and increased defense spending
• The Savings and Loans Collapse occurred under Reagan's economic policies
• The Economic Recovery Tax Act (ERTA) of 1981 cut marginal income tax, linked tax bands to inflation, and benefited businesses
• Legislation passage was facilitated by Republican majorities in the Senate, near-majority in the House, and some Democratic support
• Part-time and temporary employment rose under Reagan's policies, affecting overall workforce statistics
• Reagan left economic weaknesses, including large foreign debt and a massive budget deficit due to increased defense spending
• Manufacturing productivity grew significantly under Reagan's economic policies
• Reagan advocated significant tax reductions, concentrating wealth at the top
• Effect of Reagan’s economic policies in 18 Key Points

  1. Immediate Action and Economic Policies

  2. ORA & ERTA

  3. Prosperity and Policy Impact

  4. Plan for Reform

  5. Legislation and Political Landscape

  6. Effect on Inflation and Unemployment

  7. Legacy and Economic Weaknesses

  8. Personal Wealth and Productivity

  9. Encouraging Saving and Investment

  10. Savings and Loans Collapse
• Reagan's political coalition included the new right, southerners, blue-collar workers, union members, and diverse religious groups
• Reagan shared a hard-line anti-union stance with the older Republicans, exemplified by the firing of 13,000 air traffic controllers during a strike
• Debate exists on whether prosperity resulted from Reagan's policies or external factors like oil discovery and increased jobs
• Deregulation and removal of federal restrictions aimed to boost competition in savings and investment, leading to risky practices
• Reagan's policies aimed to combat inherited inflation and unemployment, leading to growth in real GNP and reduced unemployment rates
• Reagan's background as an actor, especially in western films, contributed to his charismatic and optimistic public image
• Reagan introduced the Omnibus Reconciliation Act (ORA) in 1981 to reduce the federal deficit through tax cuts
• Inflation reduced from 13.5% in Carter's last year to 4.7% in Reagan's presidency
• Reagan implemented cuts in federal programs, reducing AFDC (Families with Dependent Children) finance by 13% (1982-85)
• Banking Deregulation and Deregulation Policies

  1. Reagan deregulated Savings and Loans institutions, benefiting savers with better interest rates

  2. Implemented various deregulation policies, lowering costs of petrol and heating, and passing laws promoting deregulation in shipping and industry
• Savings and Loans Collapse

  Deregulation caused problems in the savings and loans industry, resulting in the Savings and Loan Crisis and subsequent bailout
• Clinton's welfare reform in 1996 aimed to end "Aid for Families with Dependent Children," introducing changes to Medicaid and food stamps eligibility
• Bush had to raise taxes in 1990, breaking his promise, and lost the 1992 election to Clinton due to economic issues
• Reagan's Welfare Policies

  1. Welfare transformed into workfare, requiring one working parent for eligibility

  2. Single parents struggled with childcare, hindering their ability to work

  3. ORA tightened legislation linking work projects to benefits
• Reagan's legacy faced criticism as some deregulated businesses prioritized profit over consumer welfare
• Reducing Big Government and New Federalism

  1. Reagan sought to reduce "Big Government" and enhance citizen rights, emphasizing states over federal government

  2. Introduced New Federalism, empowering states, reducing Education Department staff by 25%, and cutting education grants
• Deregulation increased competition

  Effective handling of the Stock Market Crash demonstrated Reagan's crisis management