Pros And Cons Of Reaganomics

Reaganomics vs. Obamanomics According to Ronald Reagan Presidential Foundation and Library, “When Ronald Reagan took the oath of office as America’s 40th President on January 20, 1981, the country was experiencing some of bleakest economic times since the Depression. Taxes were high, unemployment was high, interest rates were high and the national spirit was low.” Reagan’s Economic Recovery Tax Act was the first major legislation passed in his first term as the President of the United States. It was passed in 1981 and is also known as ERTA. This law lowered income tax rates and allowed for the expensing of depreciable assets. The tax act also greatly helped small businesses and individuals. They benefited from special tax treatment, accelerated capital recovery, and being allowed to merge. ERTA is most known for its large reduction in personal income tax rates across the board (Schein, 2015). Reagan’s Economic Recovery Tax Act was supposed to create jobs by reducing tax rates, therefore restoring the incentive to create jobs for people. It was supposed to help improve the economy by reducing individual income tax rates, helping small businesses thrive and allowing them to save money, and creating jobs though those reduced tax rates. Reagan’s
Economic Recovery Tax Act took about 8 years but it ended up restoring America. There have been other attempts to grow the economy and improve the lives of Americans that compare to this one. The Second Industrial Revolution was a phase of rapid industrialization. There were many advancements in technology during this time that allowed American to be what it is today. Compared to Reaganomics, this change happen in the blink of an eye. The Roaring Twenties are another comparison. The 1920s were a time of dramatic social and political change. Between 1920 and 1929, the nation’s total wealth more than doubled. This can be compared to Reaganomics by the simple fact that both produced completely different results than what they had started out with. The Great Depression is another one. It was a terrible worldwide economic depression that took place during the 1930’s. When Ronald Reagan became president, the world was going through the second worse depression and because of the ERTA, came out on top. On February 17th, 2009, President Obama signed The American Recovery and Reinvestment Act.
This Act is basically an effort since it was signed to help the economy, save and create millions of jobs, and look into the economic future of our country. It does this by allowing for education benefits, increasing earned income tax credit, allowing more families to qualify for additional child tax credit, and much more. I found this one much harder to compare to the Second Industrial Revolution, Roaring Twenties, and Great Depression because it is still a work in progress and hasn’t seem a great amount of success like the Second Industrial Revolution or the Roaring Twenties. But it also isn't as severe as the Great Depression
was. I would have to say that Ronald Reagan’s economic philosophy appeals to me the most. The results of this act are what made my decision between this and Obama’s American Recovery and Reinvestment Act so easy. 20 million new jobs were created because of Reagan’s Economic Recovery Tax Act, along with a huge drop in inflation and unemployment. By doing what he said he would do, which was reducing tax rates, jobs were created for people and the economy began to get better. Reagan started at a time when America was at one of its lowest economic points ever, and then he restored it by the end of his time as President of the United States.