Economic policy Political positions of Ronald Reagan

1 economic policy

1.1 economic plans, taxes, , deficit
1.2 free trade
1.3 healthcare
1.4 social security
1.5 new deal

economic policy


reagan gives televised address oval office, outlining plan tax reduction legislation in july 1981


economic plans, taxes, , deficit

ronald reagan believed in policies based on supply-side economics , advocated laissez-faire philosophy, seeking stimulate economy large, across-the-board tax cuts. reagan pointed improvements in key economic indicators evidence of success. policies proposed economic growth occur when marginal tax rates low enough spur investment, lead increased economic growth, higher employment , wages.

reagan did not believe in raising income taxes. during presidential tenure, top federal income tax rates lowered 70% 28%. however, has been acknowledged reagan did raise taxes on eleven occasions during presidency in effort both preserve defense agenda , combat growing national debt , budget deficit.

in order cover growing federal budget deficits, , decreased revenue resulted cuts, united states borrowed heavily both domestically , abroad, raising national debt $1.1 trillion $2.7 trillion. reagan described new debt greatest disappointment of presidency.

free trade

reagan supporter of free trade. when running president in 1979, reagan proposed north american accord, in goods move freely throughout u.s., canada, , mexico. largely dismissed then, reagan serious in proposal. once in office, signed agreement canada effect. north american accord later became official north american free trade agreement (nafta), signed president george h. w. bush , ratified president bill clinton.

reagan understood free trade including use of tariffs protect american jobs , industry against foreign competition. imposed temporary 100% tariff on japanese electronics other tariffs on variety of industrial products, resulted in free-market advocates criticizing policies protectionist in practice.

healthcare

reagan opposed socialized healthcare, universal health care, or publicly funded health care. in 1961, while still member of democratic party, reagan voiced opposition single-payer healthcare in 11-minute recording; idea beginning advocated democratic party. in it, reagan stated:

one of traditional methods of imposing statism or socialism on people has been way of medicine. easy describe medical program humanitarian project... under truman administration, proposed have compulsory health insurance program people in united states, , of course, american people unhesitatingly rejected this... in last decade, 127 million of our citizns, in ten years, have come under protection of privately-owned medical or hospital insurance. advocates of [socialized healthcare], when try oppose it, challenge on emotional basis... can this? , can great deal. can write our [ congressmen, our senators. can right want no further encroachment on these individual liberties , freedoms. , @ moment, key issue not want socialized medicine... if don t, program promise pass surely sun come tomorrow. , behind come other federal programs invade every area of freedom have known in country, until 1 day, norman thomas said, awake find have socialism. if don t , if don t it, 1 of these days , going spend our sunset years telling our children, , our children s children, once in america when men free.

social security

reagan in favor of making social security benefits voluntary. according reagan biographer lou cannon, have no doubt shared view social security ponzi scheme. intrigued idea of voluntary plan have allowed workers make own investments. idea have undermined system depriving social security of contributions of millions of nation’s highest-paid workers.

although reagan limited government, , against idea of welfare state, reagan continued fund social security , medicare because elderly dependent on programs.

new deal

reagan wrote never trying undo new deal. admired franklin delano roosevelt , voted him 4 times.