He passed three key economic policies to the good of the country right away, which are known as the Reagan Revolution. He cut taxes 25% plus over a few years. This was to increase federal revenue by producing new investments. These revenues should have in turn end up being more jobs for the lower classes; thus, being known as the supply-side economics. Next, he made cuts in welfare, unemployment compensation, and food stamps. He did not cut out aid for the elderly such as Social Security and Medicare. Last, he did a huge increase in military spending over the next 5 years and measuring up to more than a trillion dollars. This last move with the tax cuts combined cost the government more in the long run with larger debt (Krugman,
He passed three key economic policies to the good of the country right away, which are known as the Reagan Revolution. He cut taxes 25% plus over a few years. This was to increase federal revenue by producing new investments. These revenues should have in turn end up being more jobs for the lower classes; thus, being known as the supply-side economics. Next, he made cuts in welfare, unemployment compensation, and food stamps. He did not cut out aid for the elderly such as Social Security and Medicare. Last, he did a huge increase in military spending over the next 5 years and measuring up to more than a trillion dollars. This last move with the tax cuts combined cost the government more in the long run with larger debt (Krugman,