Republicans and Evangelicals | Reaganomics

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Ronald Reagan’s economic policies, often referred to as “Reaganomics,” were based on supply-side economics. His administration focused on reducing the role of government in the economy by cutting taxes, especially for corporations and high-income individuals, with the belief that this would stimulate investment, job creation, and overall economic growth. The Economic Recovery Tax Act of 1981 was a cornerstone of this approach, slashing income tax rates across the board. Reagan also prioritized deregulation, aiming to reduce government oversight in industries such as banking, energy, and transportation, under the idea that less regulation would foster greater business efficiency and innovation.

At the same time, Reagan significantly increased defense spending while aiming to cut domestic programs, which contributed to a substantial rise in the federal budget deficit. While the economy experienced a period of strong growth and declining inflation during his presidency—especially after the early 1980s recession—critics argue that the benefits were unevenly distributed. Income inequality widened, and the national debt tripled by the end of his two terms. So... was it worth it? Who benefited from his programs? And what does that say about us as a nation?

Sources:

• Article about Reagan's radio program
• The Invisible Bridge and Reaganland by Rick Perlstein
• The story of Tom Smith, the bread manufacturer
• Reagan: His Life and Legend by Max Boot
• Way Out There in the Blue by Frances Fitzgerald
• Reagan: An American Journey by Bob Spitz
• A bio of Bob Taft
• A helpful article about the savings and loan crisis

Discussion Questions:

• What does the term "Reaganomics" mean?
• Why is trickle-down economics helpful to the rich and not the poor?
• Do you think that Americans favor the rich? Why?
• How have your opinions about the rich and the poor shaped your faith?

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