Changes

[[John F. Kennedy]]'s fiscal policy stance made it clear that he believed in pro-growth, supply-side tax measures.<ref>http://www.heritage.org/research/reports/2004/06/the-laffer-curve-past-present-and-future</ref>

[[John F. Kennedy]]'s fiscal policy stance made it clear that he believed in pro-growth, supply-side tax measures.<ref>http://www.heritage.org/research/reports/2004/06/the-laffer-curve-past-present-and-future</ref>

These ideas were taken up as a popular political movement during the 1980 election campaign, with [[Ronald Reagan]] proposing a modified policy of supply-side economics (although [[liberals]] disparagingly used the term "trickle-down" economics)--a term they have used against conservatives since [[William Jennings Bryan]] in 1896.<ref>[http://www.investopedia.com/articles/05/011805.asp Understanding Supply-Side Economics], David Harper </ref> The decreased regulation begun in the late 1970s, together with lower marginal tax rates would provide enough savings and investment to pool new capital and drive economic growth. Manufacturers for example, would hire more people, produce more, and create more [[demand]] and economic activity.  The idea gained wide popular support, and became known as "Reaganomics".  

These ideas were taken up as a popular political movement during the 1980 election campaign, with [[Ronald Reagan]] proposing a modified policy of supply-side economics (although [[liberals]] disparagingly used the term "trickle-down" economics)--a term they have used against conservatives since [[William Jennings Bryan]] in 1896.<ref>[http://www.investopedia.com/articles/05/011805.asp Understanding Supply-Side Economics], David Harper</ref> The decreased regulation begun in the late 1970s, together with lower marginal tax rates would provide enough savings and investment to pool new capital and drive economic growth. Manufacturers for example, would hire more people, produce more, and create more [[demand]] and economic activity.  The idea gained wide popular support, and became known as "Reaganomics".  

During the presidential campaign of 1980, Ronald Reagan argued that high [[marginal tax rates]] were hurting economic output, but contrary to what many people think, neither Reagan nor his economic advisers believed that cuts in marginal tax rates would increase [[tax revenue]].<ref> [http://www.econlib.org/library/Enc/SupplySideEconomics.html Supply-Side Economics] - James D. Gwartney, The Concise Encyclopedia of Economics</ref>

During the presidential campaign of 1980, Ronald Reagan argued that high [[marginal tax rates]] were hurting economic output, but contrary to what many people think, neither Reagan nor his economic advisers believed that cuts in marginal tax rates would increase [[tax revenue]].<ref>[http://www.econlib.org/library/Enc/SupplySideEconomics.html Supply-Side Economics] - James D. Gwartney, The Concise Encyclopedia of Economics</ref>

One key aspect of Reagan's program in 1982 was tax cuts for Research and Development (R&D) in high technology firms intended to make United States more competitive with Japanese electronics manufacturers which had dominated the industry since the late 1960s.  Liberals were critical of the idea, claiming "tax cuts for business" only benefited "the rich"; however, the "trickle down effect" became a flood of prosperity in high tech industries starting in the 1980s and continuing on ever since.

One key aspect of Reagan's program in 1982 was tax cuts for Research and Development (R&D) in high technology firms intended to make United States more competitive with Japanese electronics manufacturers which had dominated the industry since the late 1960s.  Liberals were critical of the idea, claiming "tax cuts for business" only benefited "the rich"; however, the "trickle down effect" became a flood of prosperity in high tech industries starting in the 1980s and continuing on ever since.

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==External Links==

==External links==

*[http://www.mises.org/story/1544 The Myths of Reaganomics], by Murray N. Rothbard  

*[http://www.mises.org/story/1544 The Myths of Reaganomics], by Murray N. Rothbard  

*[http://72.14.209.104/search?q=cache:ZQm_5SG3WwQJ:www.davidsmick.com/WSJ070881.pdf+%22Reaganomics%22+includes+the+idea+of+tax+cuts&hl=en&ct=clnk&cd=7&gl=us&client=firefox-a What Reaganomics Is All About]

*[http://72.14.209.104/search?q=cache:ZQm_5SG3WwQJ:www.davidsmick.com/WSJ070881.pdf+%22Reaganomics%22+includes+the+idea+of+tax+cuts&hl=en&ct=clnk&cd=7&gl=us&client=firefox-a What Reaganomics Is All About]

*[http://www.independent.org/publications/tir/article.asp?issueID=20&articleID=231/ "What Really Happened in 1981"], by Alan Reynolds and Paul Craig Roberts

*[http://www.independent.org/publications/tir/article.asp?issueID=20&articleID=231/ "What Really Happened in 1981"], by Alan Reynolds and Paul Craig Roberts

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{{Economic preparedness topics}}

[[Category : Economic Preparedness]]

[[Category:Economic Preparedness]]

[[Category:Economics]]

[[Category:Economics]]

[[category:Conservatism]]

[[Category:Conservatism]]

[[category:Reagan Era]]

[[Category:Reagan Era]]

[[category:Welfare State]]

[[Category:Welfare State]]