Reaganomics

Reagan gives a televised address from the Oval Office, outlining his plan for tax reductions in July 1981

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.

Reaganomics Media

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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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  Monthly unemployment, inflation, and interest rates from January 1981 to January 1989, according to the Bureau of Labor Statistics and Federal Reserve Economic Data

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  Under Reagan, real working-class wages continued the declining trend that began in 1973, albeit at a slower rate

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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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  Budget deficit in billions of dollars

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  Trends in US income inequality 1975-2005

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  Job growth by U.S. President, measured as cumulative percentage change from month after inauguration to end of term. Reagan was second only to Clinton post-1980.