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Reaganomics

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Reaganomics refers to the economic policies associated with former president Ronald Reagan (1981-1989). The name Reagan and the term economics were combined to create "Reaganomics." Reaganomics included President Reagan's policies on reduced spending for social programs, privatization of government-related services, higher military spending, transferring control of social policies back to the state-level, supply-side tax cuts and deregulation of decision making. During Reagan's time in office, Reaganomics may have lead to lower interest rates, reduced inflation and large budget deficits. The term Reaganomics was used by both supporters and critics of Reagan's policies. Reaganomics largely focused on the supply-side of the economy to create a trickle down effect and spur growth. The term 'voodoo economics" was coined a synonym for Reaganomics by President George H. Bush.



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