Reagan’s policies reflected conservative politics and also contributed to stimulation of the economy. The economic policies of Reagan in addition to the monetary targets were responsible for softening of the business cycle in terms of growth along with recession. During Reagan administration, trickle down type of economics also called supply-side was the fiscal policy in force. This fiscal policy facilitated for high level of economic activities achieved through increasing capital. Consequently, it became possible to implement tax cuts among the high income category leading to a reduction of capital gains tax (Boskin, 1987)
This plan facilitated for collection of extra taxes achieved by improved production which arose from capital investments. The economic policy of Reagan was supported by four pillars. The first one involved cutting down the spending by the government. The second was reduction of income tax along with the capital gain tax. The third was reduction of regulatory power of the government to the economy and finally controlling the supply of money to arrest inflation (Niskanen, 1988).
The role of the U.S. in the emerging global community
The U.S. has been supportive to most continents and countries in an attempt of preventing negative political and economic ends while at the same time benefiting herself. Outsourcing of jobs has become a common trend in the U.S. which is anticipated to proliferate with increased industrialization across the globe. Creation of diversity and job outsourcing has led to the emergency of a global community leading to the adoption of diverse cultures as well as concepts. Consequently, people are empowered to make choices which are beyond the boundaries of their culture and communities (David, 2001).
The lives of people have therefore been enriched and people of diverse countries have been enlightened. Development of a global economy has empowered businesses to market their products and services across the globe. It has also been possible to form alliances as well as develop partnerships and relationships which have increased the rate of economic growth.
Boskin, M. J., (1987) “Reagan & the U.S. Economy. The Successes, Failures, & Unfinished Agenda, ICEG.
David, K., (2001). When Corporations Rule the World. Bloomfield: Kumarian Press.
Niskanen, W. A., (1988). Reaganomics: An Insider’s Account of the Policies & People. Oxford: O U P.