Reagan's Economic Policies Term Paper Example | Topics and Well Written Essays - 1500 words

Reagan's Economic Policies - Term Paper Example Besides, presidential policies are sometimes informed by the desire to discover new idea or to carry on the legacy of the American founders.1 Policies by respective presidential candidates greatly determine if they will win the elections or not; in other words, the electorates vote for a particular candidate based on the belief that his policies will propel America to greater heights of prosperity, as well as promoting national and international safety and security. Throughout the American history, the persons who have graced presidency have had various policies that have had positive and negative impacts to the country. It is well-known fact that these policies have been entrenched in the country’s history and defines each presidency that has existed. This paper will consider the President Ronald Reagan’s policies and actions concerning economic policies and his policies on the air traffic strike in particular. President Ronald Reagan was in office between 1981 and 198 9. He took office in 1981 in the wake of the worst recession since the Great Depression and he was determined to turn around America’s economic fortune. This desire was evident in his inaugural address where he articulated his intention to make the government work. In the address he said â€Å"In the days ahead, I will propose removing the roadblocks that have slowed our economy and reduced productivity.†2 His economic policies became so endeared within the broader America’s economic policies; these policies actually earned the tag of â€Å"Reaganomics.† These policies were aimed at attempting to change the United States economic policy’s course. The economic policies were contained under the Reagan’s Program for Economic Recovery of 1981 which had four main policy objectives: to reduce the government spending growth; to reduce regulation; to reduce inflation through the control of the growth of the money supply; and to reduce the marginal t ax rates on income from capital and labor. These policy objectives were expected to increase investment and saving, balance the budget, reduce interest rates and inflation, restore healthy financial markets, and increasing economic growth.3 It is imperative to understand the historical context that informed Reagan’s economic policy. This historical context not is critical in understanding what exactly was motivating President Reagan towards pushing for his economic policies. As it will be seen from the historical context, Reagan was consciously working within the Constitutional provisions and he was seeking to advance a particular great cause which was to rejuvenate America’s economy. Prior to the administration of President Reagan, the economy of the United States had experienced a decade of increasing inflation and unemployment which was popularly known as â€Å"stagflation.† His immediate predecessors had favoured stimulus that were resulting to money supply expansion. Reagan’s approach to stagflation that was facing the United States was to depart from his the approach used by his immediate predecessors.4 Reagan intended to reduce the growth of government. His policies was based on the supply side economics theory which states that tax cuts encourages expansion of the economy to eventually widen the tax base. To achieve this, he stated his intention of increasing defense spending while at the same time reducing taxes. He enacted lower rates of marginal tax in