Thread: **Need HELP.....Reaganomics**

Okay....one of my History classes is supposed to have a little debate tomorrow on the effectiveness of Reaganomic policy. I would be extremely grateful if I could get some opinions from both sides of the isle on this issue. I need to be fully prepared for whatever position comes at me.

Again...Thanx

What do you know about the supply and demand curve?

Originally Posted by The_Bear

What do you know about the supply and demand curve?

Enough....I'm just looking for PRO facts/opinions and CON facts/opinions.....my classmates won't need to fully digest the information, just realize that I have the upperhand in knowledge.

do u know the economic theory behind reaganomics?

specifically - can you explain it to your classmates, and would they understand?

Originally Posted by The_Bear

do u know the economic theory behind reaganomics?

I know the basics....or atleast what I've learned.

1) Cut Taxes
2) DeRegulation
3) Increase Defense Spending
4) Cut Domestic spending

Well, in essence.....my understanding of the general philosophy:

This supply-side economic philosophy used a type of "Trickle Down" method to created a certain expansionism in private industry, creating more jobs.

Cut taxes to expand business and create jobs....

Defense was in part to "outspend" the Soviets and end the Cold War....

I'm not quite sure was deregulation did for the economy aside from the overall reclaiming of economic freedoms.

And the decrease in social program spending just lowers the unnecessary spending....

well i was gonna draw u a diagram, but i forgot exactly how my professor did it last yr.
ah well.
Generally, taxes decrease the utility for everyone. They create sunk/lost costs, as well as create unneccesary regulations that slow commerce down.

The theory of reagonomics as explained in economic terms...
Laffer curve - Wikipedia, the free encyclopedia

if you cut taxes, people will spend more, thus generating taxes up and down the economy.

Basically, reagonomics in sum:
Free-market model works. Taxes lower the utility for the consumer and the producer. So do regualtions, because in truth, they are a tax.
Thus, de-tax people and de-regulate will create higher utility for everyhone. IT will also cause people to spend more money. When money goes around the economy, thats good, because thats when taxes increase. Sales tax recipts increase when they are more transactions.

The theory, is also that if you decrease the income tax enough, based on the supply / demand curve model, it will increase! tax revenue. This also based on free-market theory.

Although, defense increase in budget prompts a higher cost by increasing the price of goods....so the increase in supply doesn't really drive down prices.....it just puts more money in the producers......

oh yeah - income tax reduction is a key point of reagonomics.

woops.....quadrouple post..........................................