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Gekata [30.6K]
3 years ago
12

How did president ronald reagan believe he could tackle the problem of stagflation facing the american economy in 1980?

History
1 answer:
dolphi86 [110]3 years ago
5 0
Reagan's economic policy, as known as Reaganomics, was his way of trying to jump start the American economy during the 1980's. This concept revolves around three main ideas including:
1) Side-Supply Economics- This revolved around cutting taxes for business owners. The extra capital (money) they have would then allow them to hire more workers. The workers would then benefit from having wages. This is also known as the "trickle down" theory.

2) Restricting the money supply- This move would help to reduce inflation.

3) Reduce government regulations- Reagan felt this move would make citizens less reliant on the US government for aid.
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