Reaganomics
- Ronald Reagan; the president of the US in 1981, he was greatly influenced by Friedman’s theories and wanted less government involvement.
- When he became president, there was high unemployment and inflation, so he reduced income taxes, regulation, and increased government spending on the military. (Policies known as trickle-down economics)
- This theory didn’t work out as planned, because between 1972 and 1977, the wealthiest 10 percent of the population was earning 33 percent of all the income in the country.
Ebb & Flow of Liberal Economic
Reagan`s ideas represent a true free market and full blow capitalism, under his ideas, many regulations on businesses were abolished and tax breaks were offer the rich, and often raised for the middle class, Reagan believed in absolute minimal government involved to let the economy run naturally.