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counted on to produce an economic fillip that would end recession and rising unemployment, and produce a surge of revenues to balance the federal budget in fiscalyear 1983.
Congress fell all over itself in its efforts to grant Reagan’s demands. And what has Reagonomics achieved? Mqor reductions in inflation and unemployment and a sharp upturn in the economy, you say? Well, hardly!
Efforts to stimulate investment with spectacular tax cuts for the affluent failed miserably. Spending on new plant and equipment turned down, not up, and by the end of 1983 was still below its 1961 peak. Result: Without the predicted economic stimulus, the Reagan prescription of unprecedented cuts in taxes coupled with vast increases in arms spending generated the most ominous budget deficits in history, despite p«nful cutbacks in programs for the least affluent.
But what about the drop in inflation and unemployment and the economic upturn? AO have come about in spite of — not because of — Reaganomics.
Horrendous deficit
76.0%