Reaganomics

Category: Saying

The name the news media gave President Ronald Reagan’s economic policies. His approach was to make deep tax cuts in the hopes that the more money people had (especially wealthy people), the more they would spend and that would stimulate the economy. This is why those who favored Reagan’s approach called it trickle-down economics, meaning that if the wealthiest people benefited, they would spend their fortune in ways that would help less wealthier people e.g. start or expand businesses that would create jobs for poor and working folks. Such tax cuts, however, also meant slashing budgets to the government-supported programs that depended on taxes including public education and social services. That is, the very same things that poor and working folks rely on to better their circumstances.