Question

What was reaganomics, and what policies were championed by reagan and passed by congress in support of it? what other actions did reagan take to forward this economic agenda? what was "supply side economics" and how did it conflict with liberal economic philosophy of the time?

Answer 1

Reaganomics is the economic philosophy of Ronald Reagan that called for less federal government involvement in the economy and less regulation of businesses and corporations. This philosophy was also based around lowering the tax rate and the idea of supply side economics.

Supply side economics focused on the trickle down theory. This idea was that if corporations received tax breaks, they would use this money to hire/pay their workers. In turn, these workers would be able to spend money on goods within the economy. This would keep the economy going strong.

Congress supported these ideas by lowering the federal tax rate and putting less restrictions on businesses and corporations.