President Ronald Reagan promoted and passed into law provisions of an economic plan that came to be known as Reaganomics. The principles of his plan were based on the neoliberal economic theory originally developed by Friedrich Hayek and Ludwig Von Mises of the Austrian school of economics.
The major principles followed by Reaganomics were as follows: 1) totally free markets, devoid of government intervention are the best way to promote economic growth and personal freedom, 2) the government should refrain from any interference economic matters, 3) taxes should be kept at as low as possible to stimulate economic growth, 4) government regulations should be eliminated except those that ensure contracts, 5) government should not own businesses or property and should privatize those that it does own, and 6) international trade should be promoted by removing all tariffs and quotas.
Laws and policies based on neoliberalism were passed from 1981 through 2008 in the US and have had influence on the national economy down to the present. Based on analysis of economic results and political developments during the period this paper argues that Reaganomics and neoliberalism have failed to improve economic growth and the preserve personal freedom above that provided by of the Welfare State which has developed in the US and OECD countries for more than a hundred years. Furthermore the neoliberal agenda is highly correlated with the undesirable unintended consequences of a rapidly rising national debt and balance of trade deficit.
Table of Contents
- Introduction
- Tax Cuts
- Government Regulation
- Government Size and Function
- Privatization
- International Trade
- Conclusion
Objectives and Key Themes
This paper analyzes the economic policies implemented under Reaganomics and neoliberalism from 1981 to 2008, evaluating their impact on economic growth and individual freedom. It challenges the core tenets of neoliberal theory by examining empirical data and contrasting it with the theoretical claims.
- The impact of tax cuts on economic growth.
- The effects of deregulation on the economy.
- The relationship between government size and economic freedom.
- The consequences of privatization.
- The role of international trade in the neoliberal agenda.
Chapter Summaries
Introduction: This chapter introduces Reaganomics and its underlying neoliberal principles, highlighting the key policies advocated by President Reagan: laissez-faire policies, reduced government size and services, tax cuts, free international trade, and privatization. It introduces the theoretical underpinnings of neoliberalism from Von Mises and Hayek, emphasizing their belief in free markets as the optimal economic system and their concerns about government overreach. The chapter sets the stage for the subsequent analysis by outlining the historical context of the neoliberal policies and posing the central research question: Did Reaganomics succeed in improving GDP growth and preserving individual freedom?
Tax Cuts: This chapter examines the impact of tax cuts, a cornerstone of the neoliberal agenda, on economic growth. It presents data showing GDP growth rates during periods of both tax increases and decreases, demonstrating that economic growth can occur under varying tax policies. The analysis directly counters the supply-side theory often associated with tax cuts by revealing that lower taxes do not guarantee economic prosperity and that robust growth is possible even with higher taxation. The chapter also highlights a strong correlation between lower tax rates and a growing national debt.
Keywords
Reaganomics, Neoliberalism, Tax Cuts, Deregulation, Privatization, Economic Growth, Government Size, Individual Freedom, National Debt, GDP Growth, Supply-Side Economics, Free Markets, Welfare State.
Reaganomics and Neoliberalism: A Critical Analysis - FAQ
What is the purpose of this document?
This document provides a comprehensive preview of a paper analyzing the economic policies of Reaganomics and neoliberalism from 1981 to 2008. It includes the table of contents, objectives and key themes, chapter summaries, and keywords. The analysis critically examines the impact of these policies on economic growth and individual freedom.
What are the key themes explored in the paper?
The paper explores several key themes, including the impact of tax cuts on economic growth, the effects of deregulation, the relationship between government size and economic freedom, the consequences of privatization, and the role of international trade within the neoliberal agenda. It challenges the core tenets of neoliberal theory by comparing empirical data with theoretical claims.
What is the central research question addressed in the paper?
The central research question is: Did Reaganomics succeed in improving GDP growth and preserving individual freedom?
What are the main arguments presented regarding tax cuts?
The chapter on tax cuts presents data on GDP growth during periods of both tax increases and decreases. It argues against the supply-side theory often associated with tax cuts, showing that lower taxes do not automatically guarantee economic prosperity and that strong growth is possible even with higher taxation. It also highlights a correlation between lower tax rates and increased national debt.
What does the introduction cover?
The introduction introduces Reaganomics and its underlying neoliberal principles, outlining key policies like laissez-faire policies, reduced government size and services, tax cuts, free international trade, and privatization. It also introduces the theoretical underpinnings of neoliberalism from Von Mises and Hayek, emphasizing their belief in free markets and concerns about government overreach. It sets the stage for the analysis by providing historical context.
What topics are covered in the Table of Contents?
The table of contents includes: Introduction, Tax Cuts, Government Regulation, Government Size and Function, Privatization, International Trade, and Conclusion.
What are the key words associated with this analysis?
Key words include: Reaganomics, Neoliberalism, Tax Cuts, Deregulation, Privatization, Economic Growth, Government Size, Individual Freedom, National Debt, GDP Growth, Supply-Side Economics, Free Markets, and Welfare State.
What is the time period covered by this analysis?
The analysis covers the period from 1981 to 2008, encompassing the era of Reaganomics and the broader neoliberal policies implemented during that time.
What theoretical framework underpins the analysis?
The analysis engages with the theoretical underpinnings of neoliberalism, drawing on the ideas of economists like Von Mises and Hayek, who emphasized free markets as the optimal economic system.
What type of data is used in the analysis?
The analysis utilizes empirical data to examine and challenge the claims of neoliberal theory, comparing the theoretical predictions with real-world economic outcomes.
- Arbeit zitieren
- Fred Haggerson (Autor:in), 2016, The Failures of Reaganomics and Neoliberalism, München, GRIN Verlag, https://www.grin.com/document/339340
