Reaganomics

The term Reaganomics ( portmanteau word composed of " Reagan " and " economics", engl. Of Economics ) refers to the economic policies of the United States under President Ronald Reagan.

Theory

Reagan's economic policy based on one hand on the economics foundations of the Chicago School (also known as supply-side economics ), a further basis were excited by the economist Arthur B. Laffer tax cuts. After Laffer theory (see Laffer Curve ) would not decrease, but actually increase tax revenues.

Tax Policy and Revenue

The Reagan administration lowered the Economic Recovery Tax Act of 1981 the top rate of income tax from 70 % to 33 %. The taxes on capital gains and corporate taxes were reduced. This tax revenue is reduced significantly. With various laws such as the Tax Equity and Fiscal Responsibility Act of 1982, the Social Security Amendments of 1983, the Deficit Reduction Act of 1984, the Omnibus Budget Reconciliation Act of 1987 and the Tax Reform Act of 1986 moderate tax increases were adopted.

Government revenue in 1983 went back first, then actually increased again, but more slowly than before. The effects of Reagan's tax policies are controversial to this day.

Discussion

The economic policies of the Reagan administration remains to this day a matter of controversy. Critics argue that it was a policy at the expense of the poorer classes and in favor of the top two percent of the U.S. population, as well as financial support for social programs from the days of the Great Society were cut.

Gerard Radnitzky characterizes the Reaganomics as "free market economy in the rhetoric and some privatizations, while in practice the government spending and the tax share increased as a percentage of the gross national product. "

In the UK, people spoke of Thatcherism, named after the British Prime Minister Margaret Thatcher, which was a similar policy is based. In New Zealand, developed as the basis of Reaganomics, the term Rogernomics for the policy of the Minister of Finance Roger Douglas.

With Atari Democrats as the term Third Way social democratic and moderate left-wing politicians such as political currents have been designated, the reception are individual aspects of Reaganomics on the political left.

The sociologist Colin Crouch sees the fundamental changes in the U.S. during the Reagan administration in the management of welfare state institutions, the marginalization of trade unions and a split between rich and poor is at a level comparable to third world countries.