Q:

What happened to the federal deficit during the Reagan Administration?

A:

While Ronald Reagan was president of the United States, the federal deficit increased from 2.6 percent to 6 percent and then, by 1988, fell to 3.1 percent. Because of this, he is often credited with reducing the deficit.

For President Reagan to decrease the federal deficit, he had to employ unique tactics as he firmly believed in cutting taxes for individuals. Reagan passed bills and laws in order to make it tougher for people to evade taxes.

He closed tax loopholes and also reduced a number of different federal tax breaks. Most notably, President Reagan passed reform legislation for Social Security to require those that received higher amounts to pay taxes on a portion of the benefits that they received. 

Sources:

  1. cnn.com

Is this answer helpful?

Similar Questions

  • Q:

    How does a government budget deficit affect the economy?

    A:

    A government budget deficit can affect the economy in many ways, most notably it may force the government to print more money to finance the deficit, decreasing the value of the nation's currency. However, running deficits can be beneficial in the short term, as it allows the government to increase GDP and continue to provide the services that allowed it to secure loans from other governments initially, according to About.com.

    Full Answer >
    Filed Under:
  • Q:

    What were the economic effects of the Reagan administration?

    A:

    Under President Ronald Reagan, the misery index fell from 19.33 percent to 9.6 percent, unemployment fell to about 5.4 percent and inflation fell from 13 percent to 4.1 percent. His policies were used as a model for later conservative leaders.

    Full Answer >
    Filed Under:
  • Q:

    Why did they call Ronald Reagan "The Gipper"?

    A:

    Ronald Reagan was a professional actor before he was elected president, and he portrayed American college football player George "The Gipper" Gipp in the 1940 film "Knut Rockne, All American." The phrase "Win one for the Gipper" was purportedly said by Gipp on his hospital bed.

    Full Answer >
    Filed Under:
  • Q:

    What is the meaning of "development administration"?

    A:

    "Development administration" refers to the administration of policies, programs and projects that contribute to the development of a nation and have significant sociopolitical and socioeconomic impact on the countries involved. It is performed by bureaucrats who are talented and highly experienced. Development administration models are driven by the desire for change. Most development functions have specific objectives, and planning for both resources and time is crucial to the model.

    Full Answer >
    Filed Under:

Explore