KT4 revision- essay plans USA
For
Trade deficit and Budget deficit – Budget was part of a new supply
side economic strategy prioritising growth over balanced budgets-
budget deficits marked a shift from the previous bipartisan goal of
reducing deficits through careful fiscal policy.
Tax cuts decreased federal government spending but defence
spending increased -2.6 trillion dollars in deficit.> budget was 5x
that of his predecessors.
Trade deficit grew due too strong dollar ( linked to tight monetary
policy) made imports cheaper > USA Americans spent two billion
more on imported goods > deficit rose from 38 Billion to 150
However the deficits were more of a consequence than a deliberate
policy shift> they don’t necessarily reflect fundamental change in
the nature of economic policy but rather the results of choices that
weren’t aimed at changing fiscal norms. Deficits exited before
Reagan represent continuity rather than complete break
For
Impact of supply side economics ( shift from Keynesianism)
Increased spending of the middle class- increased income tax- more
disposable income
Policies benefited big corporations as well since he deregulated
companies which enabled them to maximise profits. Corporation tax
was also reduced> cut staff of regulatory agencies by around 25%
Under the omnibus reconciliation act Reagan introduced workfare
which [provided welfare payments to people for completing
community services- permanent feature of American society.
GNP grew too 11% by 1981 and 1984
16 Million Jobs were created
Inflation fell from 13-5 percent
However his cuts to both the medi and AFDC, 1981 cut federal
funding this affected 212 families, 13 million children living in
poverty. 50% rust belt was unemployed. Impact on workers- didn’t
raise the min wage, PACTO STRIKE, reduced trade union power
Against
Later presidents (Bush senior_ reversed aspects of Reagonomics,
Pledged a 2.7 trillion deficit decrease> “Read my lips no new taxes,”
increased taxes on yacht and luxury items- lead to Clinton winning.
, Met with resistance from congress and public> Veto of the clean
water act < congress override it with the 1987 water control quality
act, Reagan left Medicare and veteran benefits alone
The very fact Bush had to respond to it showed that Reagan did
bring about fundamental change by shifting the centre of economic
debate- even bush despite raising some taxes did not return to the
pre Regan Keynesian model> maintained deregulation, free market
priorities and lower marginal tax rates
tWhat was the impact of Reagans economic policies on society in the
years 1981-92
Negative impact- due to growing divisions between rich and poor-
taxes of 1981 bottom income decline by 1300 per anum and the top
1% national income rising from 8-15 and the 1986 tax reform code –
BUT SOME OF HIS POLICIES ALLOWED HIM TO REDUCE INFLATION
AND BRING ABOUT A STABLE ECONOMY AFTER RECESSION
Damaging impact upon the us economy due to its impact on
workers and and lack of support towards employment.- air traffic
and also the min wage. Also his 25% cut in staff within regulatory
agencies prevented check upon employers and a 50% decline in
prosecutions of illegal waste. Also the appointment of 400
conservatives ( 368 being white, 15 hispanic, 7 black and 2 asian)
ALTHOUGH IT CAN BE ARGUED THAT HE DID CREATE EMPLOYMENT
OPPURTUNITIES 16 MILLION NEW JOBS AND UNEMPLOYMENT WENT
FROM 7%-4%
Damaging impact on families- federal programs. – his 38% cut in
consumer product safety commission BUT HE DID NOT CUT
MEDICARE OR MEDICAID
Impact of Reagans economic policies on budget and trade- - 4
trillion pound debt when he left office. 5 times that of his predeccor-
spending on defence went up too 2.6 trillion. Trade deficit – people
spent 2 billion more on foreign goods than imported goods – 150
billion per anum trade ( up from 38) – Chrysler laying off an
immense amount of staff and Detroit growing unemployment due to
car manufactures going abroad. Walmart. Also the creation of the
eec in 1965 BUT BALANCED BUDGET AND EMERGENCY DEFICIT
CONTROL ACT OF 1986 ATTEMPT TO BALANCE THE BUDGET AND 25
AND 3 TARRIFS
To what extent did status of women change between 1881-1992
Introduction
For
Trade deficit and Budget deficit – Budget was part of a new supply
side economic strategy prioritising growth over balanced budgets-
budget deficits marked a shift from the previous bipartisan goal of
reducing deficits through careful fiscal policy.
Tax cuts decreased federal government spending but defence
spending increased -2.6 trillion dollars in deficit.> budget was 5x
that of his predecessors.
Trade deficit grew due too strong dollar ( linked to tight monetary
policy) made imports cheaper > USA Americans spent two billion
more on imported goods > deficit rose from 38 Billion to 150
However the deficits were more of a consequence than a deliberate
policy shift> they don’t necessarily reflect fundamental change in
the nature of economic policy but rather the results of choices that
weren’t aimed at changing fiscal norms. Deficits exited before
Reagan represent continuity rather than complete break
For
Impact of supply side economics ( shift from Keynesianism)
Increased spending of the middle class- increased income tax- more
disposable income
Policies benefited big corporations as well since he deregulated
companies which enabled them to maximise profits. Corporation tax
was also reduced> cut staff of regulatory agencies by around 25%
Under the omnibus reconciliation act Reagan introduced workfare
which [provided welfare payments to people for completing
community services- permanent feature of American society.
GNP grew too 11% by 1981 and 1984
16 Million Jobs were created
Inflation fell from 13-5 percent
However his cuts to both the medi and AFDC, 1981 cut federal
funding this affected 212 families, 13 million children living in
poverty. 50% rust belt was unemployed. Impact on workers- didn’t
raise the min wage, PACTO STRIKE, reduced trade union power
Against
Later presidents (Bush senior_ reversed aspects of Reagonomics,
Pledged a 2.7 trillion deficit decrease> “Read my lips no new taxes,”
increased taxes on yacht and luxury items- lead to Clinton winning.
, Met with resistance from congress and public> Veto of the clean
water act < congress override it with the 1987 water control quality
act, Reagan left Medicare and veteran benefits alone
The very fact Bush had to respond to it showed that Reagan did
bring about fundamental change by shifting the centre of economic
debate- even bush despite raising some taxes did not return to the
pre Regan Keynesian model> maintained deregulation, free market
priorities and lower marginal tax rates
tWhat was the impact of Reagans economic policies on society in the
years 1981-92
Negative impact- due to growing divisions between rich and poor-
taxes of 1981 bottom income decline by 1300 per anum and the top
1% national income rising from 8-15 and the 1986 tax reform code –
BUT SOME OF HIS POLICIES ALLOWED HIM TO REDUCE INFLATION
AND BRING ABOUT A STABLE ECONOMY AFTER RECESSION
Damaging impact upon the us economy due to its impact on
workers and and lack of support towards employment.- air traffic
and also the min wage. Also his 25% cut in staff within regulatory
agencies prevented check upon employers and a 50% decline in
prosecutions of illegal waste. Also the appointment of 400
conservatives ( 368 being white, 15 hispanic, 7 black and 2 asian)
ALTHOUGH IT CAN BE ARGUED THAT HE DID CREATE EMPLOYMENT
OPPURTUNITIES 16 MILLION NEW JOBS AND UNEMPLOYMENT WENT
FROM 7%-4%
Damaging impact on families- federal programs. – his 38% cut in
consumer product safety commission BUT HE DID NOT CUT
MEDICARE OR MEDICAID
Impact of Reagans economic policies on budget and trade- - 4
trillion pound debt when he left office. 5 times that of his predeccor-
spending on defence went up too 2.6 trillion. Trade deficit – people
spent 2 billion more on foreign goods than imported goods – 150
billion per anum trade ( up from 38) – Chrysler laying off an
immense amount of staff and Detroit growing unemployment due to
car manufactures going abroad. Walmart. Also the creation of the
eec in 1965 BUT BALANCED BUDGET AND EMERGENCY DEFICIT
CONTROL ACT OF 1986 ATTEMPT TO BALANCE THE BUDGET AND 25
AND 3 TARRIFS
To what extent did status of women change between 1881-1992
Introduction
