Introduction
Ronald Reagan used a domestic policy during his tenure as president of the United States of America. This happened from 1981 to 1989. According to him, economic stability could be achieved through a reduction on the government’s supply side. This included a reduction in government spending such as funding of public enterprise. He emphasized the need for more private enterprises than public ones and encouraging financial institutions to give more support to the private investor. Private investment would not only ensure growth to the economy in general but would also reduce the amount of time and money spent on their regulation. This is because the government gets less involved in the private sector than in the public sector.
Main body
Another key element of Ronald’s domestic policy was the reduction in money supply as a way of reducing the inflation rate. He argued that the increase in the volume of money in circulation which led to inflation was a result of the increased money supply. Reducing the money supply would therefore solve the problem. A reduced inflation rate ensures stable economic growth and improved standards of living for the citizens.
During his tenure, Ronald saw the need for reducing the unemployment rate by encouraging entrepreneurial skills among the youths. Youths were offered training sections in which they were taught different ways of expanding their ideas for investment opportunities. Through this, they were able to set up businesses that not only benefited them but also their dependants. The increased investment ensures a reduced unemployment rate and an increase in the country’s gross domestic product.
Reagan cut the top tax rate for the rich people with the view that the effect will trickle down to the poor. The increase in the tax rate that had been initiated before he became president had hurt the condition of living for the poor people. This was because the rich were forced to pay high taxes which made them exploit the poor in society. He reduced spending on several domestic programs but failed to reduce federal spending or the government’s deficit which it was suffering from at the time. The government deficit has continued to grow over the years although George Bush tried to put measures that would help stabilize the country’s balance of trade. Reagan was convinced by his advisers to put off action on social and cultural issues such as abortion. However, he could not have managed to put off abortion because it had already been legalized into law.
He supported the deregulation of industries which had been instigated by the formal president James Earl Carter. He also cut federal misunderstandings in other sectors of the economy. During his first briefing in the white house, Reagan declared the start of the creation of a task force on the regulatory reform. This regulated reform was then chaired by George Bush who was the vice-president. Today, regulatory reform has remained one of the president’s highest policy priorities. This reform is based on four different principles, namely: reduction of burden on state and local government, market incentives harnessing, regulations of social costs and benefits, and reforming of regulatory procedures.
Conclusion
Reagan was one of the presidents of America who can be said to have positively influenced the government and economy. His domestic policy was aimed at providing a favorable environment for the citizens to live in and also for conducting their businesses. He brought about many changes which are still felt today.
Bibliography
- Busch, Andrew. 2001. Ronald Reagan and the politics of freedom. New York: Rowman & Littlefield
- Salamon, Lester, M. et al 1984. The Reagan presidency and the governing of America changing domestic priorities series. Washington D.C.: The Urban Institute