Question

1.) Please name and describe the four pillars of Ronald Reagan's economic policy.

2.) Briefly describe the "misery index" and how does it relate to 1970s-1980s economic issues facing Jimmy Carter?

Answer 1

1)

(1) One principle is that to institute the economic theory of the side supply economic.This predicted that vutting of taxes, business will improve as a capital, workers hiring and production of goods.

(2) Heavy deregulation of federal spending and grown in the early 1900s and during FDR's new Deal programs.He think that Americans could prosper through individual effort. He says that this as a new federalism.

(3)Cut in the Federal income tax also stood as an important pillar in Reagan 's economics. Income tax brackets were simplified.The wealthy benefited from this reduction the most. The theory was more Americans would have more money to spend.

(4)To reduce inflation, Reagan restricted the money supply while the federal reserve raised interest prices to counter act inflation. Defense spending and low tax increased the Federal deficit.

(2) Misery index is equal to the sum of inflation rate and the unemployment rate, the original misery index was popularized in the 1970 as a measure of America 's economic health during a President's term in a office.

Jimmy Carter popularized Okun's misery index as a means of criticizing his opponent incumbent Gerald Ford.By the end of Ford's administration, the misery index was relatively high 12.7% creating a tempting target for Carter.