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.
Amid a recovering world economy beset by risks, the outlook for Asia–Latin America economic ties seems bright. Asia needs commodities for its dynamic global factory and Latin America has abundant natural resources. Asia needs food for its large population and Latin America has fertile agricultural land.
Nouriel Roubini, a.k.a. “Doctor Doom”, is chairman of Roubini Global Economics and professor of economics at New York University’s Stern School of Business. Roubini has been consistently cited as one of the world’s top global thinkers. This year, he was voted as the most influential economist in the world by Forbes magazine.
Vice President and Director of the Global Economy and Development Program at the Brookings Institution. Former Turkish Minister of State for Economic Affairs. Head of the United Nations Development Program (UNDP) from 2005-2009.