Second, Reagan applied the principle of limited government to the economy, cutting taxes and initiating other supply side measures such as deregulation and reduced federal spending, which produced an unprecedented period of economic prosperity lasting well into the 1990s.
He insisted that if you reduced tax rates and allowed people to spend or save more of what they earned, “they’ll be more industrious, they’ll have more incentive to work hard, and money they earn will add fuel to the great economic machine that energizes our national progress.”
As a result, during the 1980s, economic growth averaged 4.6 percent annually, the gross national product doubled, and 17 million new jobs were created."
No comments:
Post a Comment