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Anvisha [2.4K]
3 years ago
7

Link past and present in 2001, president George W. Bush signed the Economic Recovery Tax Relief Reconciliation Act of 2001. This

bill called for large tax cuts just as the Economic Recovery Act of 1981 had and largely benefited the wealthiest Americans. President Bush's approach to Economics was very similar to that of President Reagan's. Explain the assumptions behind the theory of supply-side Economics and describe the consequences of Reaganomics.
History
1 answer:
IrinaK [193]3 years ago
5 0
The phenomena that describe the direct relationship between money and spending is called the supply-side economics. This theory support Reagan and Bush beliefs of cutting the taxes encourage the people to work more and at the same time give back to the economy through consumer spending; it also allows more investors in business and industry. Unfortunately, the side effect of Reaganomics is the economic recession; it causes a high rate of unemployment for farmers and employees.

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