The long term effects were that the savings and loan industry collapsed due to fraud and mis-management. Regan knew that deregulation could possibly have adverse effects if there was no degree of regulation at all, so preventative measures were set in place. One such preventative measure was the Office of Information and Regulatory Affairs (O.I.R.A) which insured that deregulation adhered to cost benefit principles to the maximum extent possible. "If government is the problem, not the solution, you do not solve problems by applying a bigger problem to them" (Regan). Another notion behind Reganomics was the Laffer Curve, which conveyed the idea that tax cuts would increase tax revenue. The Laffer Curve is based on the ideology that government should provide a climate in which the incentives for individuals to pursue their own economic progress wouldn't be hindered by governmental taxing, spending, regulations, and/or monetary policies. It is also based on supply side economics. Supply side economics was an economic policy designed to stimulate output and lower unemployment by increasing production in the economy. It allowed the free market to play a greater role in the economy while the government took on a lesser role. "If government is the problem, not the solution, you do not solve problems by applying a bigger problem to them" (Regan). The Regan administration believed tax and spend policies led to a weak economy. Accordingly, they passed the Tax Reform Act of 1986 (TRA86) which reduced individual income tax liabilities and raised corporate income tax liabilities. They also passed ERTS. ERTA gave a 25% cut in individual marginal tax rates over a three year period. It set an indexing of individual brackets, personal exemptions, and standard reductions; it reduced all individual taxpayers taxes, and gave percentage reductions for lower and middle class incomes exceeding those given for the rich.
This paper looks again at the U.S. deficit debate of the 1980s, this time with the benefit of the Commerce Department's newly revised data for that period and also in light of the experience of the 1990s when sizeable budget surpluses replaced chronic large deficits. In the 80's ran by Reganomics th...
Federalism is a concept that started many years ago during the times of the ratification of the document we live by called the Constitution. This concept basically states that there will be two levels of government, the national and the state. Federalism states that the national and state governments are separate entities and have formal authority over the same area and people. With its largest effect was during the Civil rights movement. Civil rights are freedoms and rights ...
