Question

President Reagan had a different attitude from his predecessors when it came to the national debt and how to grow the economy. What was Reagan's position on the national debt? How did Reagan believe cutting taxes would help stimulate the economy?

Answer 1

President Reagan believed that lower taxes meant a higher growth in the economy because Americans would have more money to spend on products and employees, in turn, boosting the economy and also the morale of his citizens; lower taxes equals happier citizens. His approach was called "Reaganomics", he hoped cutting taxes would help create jobs, lower poverty levels, and higher GDP growth. Unfortunately his plan did not work and created even more debt for the United States.

Answer 2

He believed the American people would have more money to spend so it would stimulate the economy. He stood for tax cuts to give Americans back their money.