HIS/135 Reagan's Economics
posted by Hannah
I was hoping for some feedback before I turn in this short essay.
Compare and Contrast the "culture of consumption "during the Eisenhower administration with the "Decade of greed" during the Reagan presidency in 175-225 words.
During the Eisenhower administration American culture underwent a grand transformation. From depression and recession, to one of the greatest economic booms America has experienced. The culture of the 1950’s was one of mass consumption, increased foreign relations, and the pursuit of the American dream. As more job opportunities presented themselves and the middle class continued to grow, more families than ever before were able to afford to buy a home instead of renting.
When Ronald Reagan became president in 1980 America was in yet another recession and this time it was paired with inflation. Reagan’s approach to alleviate these issues was to initiate tax cuts for those in higher tax brackets, lessen governmental power, lower public spending, and increase military spending. Although cutting taxes was a popular notion among conservatives there were many underlying controversies surrounding this idea. Some cautioned that tax cuts would result in an even greater deficit. However, despite the controversies Reagan followed through with the tax cuts believing that there would be more for Americans to spend and that would make up for the deficit. Unfortunately, the trickle-down theory that the Reagan administration had adopted proved to be faulty. The wealth was not trickling down from the rich and to the poor, the rich were becoming richer and the poorer were becoming p
In the 50s the USA not only consumed but also produced. Europe was just getting on its feet after WW2 and Asia was pretty much in ruins. Our economy expanded not only to satisfy our domestic demands but we were far and away the major producer of food and goods in the world. Employment boomed in the manufacturing and service sectors and the working class benefited.
The Reagan tax cuts were nothing like that. They benefited people who already had money and did not cause a boom in employment of workers.