How Reganomics Destroyed Middle Class America - 1812 Words

How Reaganomics Destroyed the Middle Class Reaganomics are the economic policies that were set and promoted in 1980s by the U.S. President Ronald Reagan. These policies are mainly connected to trickle-down economics. There are four pillars that are associated with the economic policy of Reagan and they include: reduce government economic regulation, reduce growth of how much the government spends, reduce the marginal tax rates such as capital gains tax and income tax and lastly reduce the level of inflation by controlling money supply growth. These four policies were expected to increase investment and savings, balance the U.S. budget, reduce inflation, increase the economic growth rate, restore healthy financial markets and reduce†¦show more content†¦The government decided to fund government organizations such as Environmental Protection Agency instead of funding the social security (Barone 120). This means that the department was left without funds hence there was no mone y that could be used to pay those who were working in the social security majority of which were middle class people. This shows how the middle class people were destroyed as a result of Reaganomics which forced the middle class people to pay more taxes. In the end of his two terms as the president of the U.S., 5% of the population which comprise of the rich had received double wealth and economic share of ownership while 95% of the population which comprise of the middle class people and the poor had no progress when it comes to immersion of wealth instead they had lost more of their wealth due to inflation and high tax rates (Barone 120). Nevertheless, the social security meant to benefit the rich poor since they were the ones who owned property. The middle class people did not obtain any form of social security thus were forced to protect their own wealth. Unregulated economy: the main reason why Reaganomics policy was implemented was to stimulate economic growth. In the beginning, the policy managed to stimulate economic growth but this was as a result of increased spending among the middle class people and not as a result of tax cuts.