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.
class="MsoNormal">The Japanese economy continues to defy gravity despite a Mount Fuji of debt that has no parallel in Western countries, and the worst problem of demographics among all the world’s rich nations. Japan’s net debt-to-GDP ratio is about 135%, even higher than the Southern European nations when they plunged into crisis. Meanwhile, the World Bank’s figures show one of the world’s lowest fertility rates of 1.39 births per woman, leading to rapid population decline.
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".
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.
Professor of Economics & Director of the Earth Institute at Columbia University. Special Adviser to the UN Secretary-General on the Millennium Development Goals. Founder & co-President of the Millennium Promise Alliance.
Mario I. Blejer is a former governor of the Central Bank of Argentina and former Director of the Center for Central Banking Studies at the Bank of England. Eduardo Levy Yeyati is Professor of Economics at Universidad Torcuato Di Tella and Senior Fellow at The Brookings Institution.
Andrea Edwards has worked in marketing and communications all over the globe for 20 years, and is now focused on her passion – writing. A gifted communicator, strategist, writer and avid blogger, Andrea is Managing Director of SAJE, a digital communications agency, and The Writers Shop – a regional collaboration between the best business writers in Asia Pacific