President Ronald Reagan's economic policies was known as Reaganomics. Ronald Reagan was the 40th President of USA. His main task was to fight against the worst recession since the Great Depression.
He believed that capitalism and a free market would solve the country's problem. Reaganomics theory is based on supply-side economics. It believes that by lowering corporate taxes is the best way for economic growth. When companies will get more amount of cash, they will hire new employees and will try to expand their businesses. It also says that lowering taxes on income will provide workers more incentive to work for, which will increase the supply of labor. This will ultimately promote economic growth and will reduce unemployment.
