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COMPARISON OF THE EFFECTIVENESS OF REAGANOMICS AND THE NEW DEAL

This article entails a detailed comparison of the effectiveness of Reaganomics and the new deal programs. Reaganomics is the economic policies put forward by US President Ronald Reagan during his presidency in the 1980s. The policies fought slow economic growth, high unemployment, and high inflation. The implementation of Reaganomics aimed at reducing government spending, taxes, regulation. Reaganomics also meant to slow down money supply growth to control inflation. The basis for Reaganomics was on supply-side economics. Therefore, it is a macroeconomic theory that states economic growth can be created by reduced taxes and lower regulation. With this, Reaganomics’ effects were positive. The Dow Jones Industrial Average rose fourteen times. Reaganomics also created about forty million jobs.
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COMPARISON OF THE EFFECTIVENESS OF REAGANOMICS AND BACKGROUND OF REAGANOMICS

Reagan believed that the implementation of Reaganomics would ultimately generate more revenue for the government. The idea was that consumers would benefit from cheaper goods and services, and unemployment would decrease. Unlike the new deal programs, Reaganomics was more permanent, and they stimulated the broader economy. Tax cuts put more money in the consumer’s wallets for spending. This stimulated business growth and led to more hiring. In the end, Reaganomics’ effects were a larger tax base and more revenue for the government. President Reagan also promised to reduce the government’s role and adopt a more laissez-faire approach.
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AN EVALUATION OF THE NEW DEAL

Unlike the Reaganomics effects, the New Deal only provided a narrow stimulus that created temporary jobs. During the Great Depression, the FDR responded with a bold program of experimentation that arguably saved the capitalist system. The New Deal programs did not achieve the nationalization of any industry. The social safety net created by Social Security paled by European standards as well. Roosevelt’s critics charged that he abused his power and set the trend for an imperial Presidency. While the implementation of Reaganomics had a more significant impact, the New Deal also created millions of jobs and sponsored public works projects that reached almost every county in the nation.
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