Ronald Reaganomics Model Of Government

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The American government has long been conflicted with balancing freedom and government intervention. Originally, the country was founded on the virtue of personal responsibility and that an overbearing government threatens such a prerogative. Still, as the nation matured, so did philosophies. A schism arose among politicians as to how much faith should really be instilled in the theory that the strong willpower and determination of citizens will allow them to obtain better lives. Two leaders in American history stand out as quintessential advocates for the conservative and liberal perspectives on the matter. President Ronald Reagan's "Reaganomics" represented the traditional Republican, conservative view of limited government action and …show more content…
President Reagan inherited a poor economy with a 7.5 percent unemployment rate and a -.2 percent growth domestic product rate. This ultimately led to a recession during Reagan's first two years of office which helped ignite Reagan's desire for conservative economic policy. With the help of his advisors, he created his policy known as "Reaganomics," which was based on supply-side economics and citizens' determination. The philosophy of supply-side economics was that if the government had minimal involvement with businesses and allowed for free markets, supply and demand would naturally dictate the flow of the economy. Corporations could have more money and be able to hire more workers, thus increasing employment and reducing poverty rates. The power of personal responsibility would guide citizens who wanted better futures to work hard in order to obtain it and not waste the money of taxpayers on programs that he believed encouraged laziness such as welfare policy. This led Ronald Reagan to cut around $41.4 billion dollars from Great Society …show more content…
As a result of the Revenue Act of 1964 under the Johnson administration, top bracket earners got a tax reduction of 14 percent and low bracket earners received a reduction of 4 percent (Lowndes 667). This allowed citizens to keep more money and have less of a burden in their attempt to save it. The net worth of each human would increase and allow them to provide for themselves by being able to spend more money on items. This also would boost the economy as a whole as more money would circulate. Overall, there would be more economic stability while also not significantly hurting the revenue that the government received. Programs with tax money could still remain afloat and only take small damages to the budget received from income
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