The concept of Reaganomics appears very promising at first glance. Tax cuts would increase the savings of the common American, which would increase the amount of wealth invested in stocks. These investments would stimulate the economy and create new jobs. With so many options available to the work force, employers would have to compete in terms of wage and benefits in order to be attractive to potential employees. These increased wages would mean that people would have more money to give to the government.
With this plan come consequences. For one thing, Federal spending would have o be cut to a huge degree. This would create lower entitlement funds, reduce funding to mandates and erode the infrastructure of the country as money available for things like airports and roads dwindled.
The concept of Reaganomics was brilliant given the time-period we’re talking about. The economy was dropping like a stone and people’s trust in the government was waning. The tax cuts provided the boost the economy needed and then they were rescinded before the damage to our infrastructure was too severe. Unfortunately, implementing this plan for long periods of time would be tricky at best. My hope would be that, with the economy on the rise, growing industry would help to compensate for the under-funded entitlements, mandates and infrastructure. In addition, with more money running through the economy, private research and development