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.
India needs economic growth for sustainable development, which in turn requires access to clean, convenient and reliable energy. An estimated 400 million people still lack access to electricity, and blackouts are still common across the country. A combination of rapidly increasing energy demand and fuel imports plus growing concern about economic and environmental consequences is generating growing calls for innovative policies and mechanisms to promote increased use of abundant, sustainable, renewable resources.
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.
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