In: Economics
How did Reagan’s policies reinforce the views and stereotypes that many white American had about social programs and the welfare state? What did the Reagan administration do to promote those stereotypes and beliefs? What stopped Democrats from being able to refute these stereotypes? What beliefs and stereotypes from this era still exist today?
When Ronald Reagan was elected to be the president, the nation's economy had been in a state of great inflation since 1965,the decade leading was characterized by stagflation,where prices were rising even as unemployment remained high and economic growth was slow.
Reagan come up with a policy famously known as Reagonomics ,it was heavily based on trickle down theory means if you lower the cose of corporation by cutting their taxes, businesses they will use those saving to invest,The thinking was more money for corporation would mean more jobs and higher wages for workers and thus, increase spending but there were some cons as follows :-
-when corporate taxes were cut domestic social programs suffered
-Only a small handful of rich individuals at the top become even reacher
The policy had 3 other central points -
1-Deregulate business
2-Use private contractor
3-Decrease spending on domestic social programs including food stamps ,social security and disability insurance , It was believed by Reagan that social help is only reaching to the people who are making more noise instead of the one who are actually in need
Reagan's administration argued that by 1983 nation economy started recovering from stagflation this led to a period of economic prosperity that continued through the rest of Reagan's presidency.
White Americans believed that deciding which group is deserving of assistance and which are not are racialized best thing is to give reward for hard work rather than a handout for the lazy and dependent.
Democrats were unable to refute because of the increasing GDP and decreasing unemployment rate which was actually affecting the middle class at that point of time.
Even today the tax on income is highly influenced by the Reagan's policy and US taking the money away from Paris deal is one of the great example of such stereotype.