Main economic feature of the presidential regime of Ronald Reagan was deficit spending on a huge scale on armed forces.
Economic policies of Ronald Reagan were based on two promises that he had made in his presidential campaigns. Those were reduction in taxes as well as size of the government. Reagan tried to counter the effects of inflation by reducing rates of income taxes with amount of deduction being directly proportional to income level.
One of the major steps taken by him during his second term as president was the Tax Reform Act of 1986. With the introduction of this legislature Reagan tried to widen base of taxation and also do away with any form of partiality in entire process. This Act was designed to be revenue neutral. It brought down the top marginal rate. It had cleaned up, to a certain extent, and also had done away with loopholes, exceptions and preferences in the system. This effectively meant that taxes were imposed on areas that had been provided with special favors by the previous tax code.
Economic policies adopted by Ronald Reagan in his second term as president of the United States of America had a mixed impact on economy of the country. Among the major highlights of second presidential reign of Ronald Reagan was decline in rate of unemployment in the country. During the first presidential reign of Ronald Reagan, rate of unemployment had gone up to 10.6% in 1982. However, by 1988 the rate had come down to 5.5%.
One of the beneficial aftereffects of presidential reign of Ronald Reagan was decline in inflation level. When Reagan had been sworn in as president, rate of inflation was 14%. Reagan was able to bring down the level of inflation with his policies. Reagan also played a major role in accentuating economic growth of the United States of America. He accomplished that by reducing tax rates as well as simplifying the system.
Following Russia's military incursion in Ukraine, the US immediately threatened various sanctions against Moscow, including personal travel bans, an ejection from Russia from the G8, and trade and finance measures. In retaliation, a Putin advisor warned that Russia could abandon the dollar as a reserve currency and/or default on loans to US banks. Neither party however can afford any form of action, nor do they have any real influence over each other’s economies.
Professor at Columbia University. Recipient of the Nobel Memorial Prize in Economic Sciences in 2001 & the John Bates Clark Medal in 1979. Author of "Freefall: America, Free Markets", "The Sinking of the World Economy", "Globalisation and its Discontents" & "Making Globalisation Work".
Chancellor of the Exchequer of the United Kingdom from 1992 to 2007. Prime Minister of the UK between 2007 and 2010. Inaugural 'Distinguished Leader in Residence' at New York University. Advisor at World Economic Forum
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