Tax Cuts and Supply-Side Economics
When President Reagan was elected, the American economy was in the tubes. OPEC's embargo on oil caused the American economy to suffer from inflation and high unemployment due to higher oil prices. Reagan decided to stimulate the economy by cutting taxes. His ideas came from a theory called Supply-Side economics, yet his policies soon became known as Reaganomics. Supply-side economics is a theory that economic growth happens when the supply of good and services increase through tax cuts. In August 1981 President Reagan signed a bill to cut taxes by 25 percent over 3 years. Conservatives believe that cutting taxes stimulates the economy because the middle class will buy more products, and start investing in things like stocks, while the upper class can expand their business and create jobs which can stimulate the economy and benefit people who are not in the lower class. Change may not have came immediately, but when it came it was great. The GNP rose 7.1%, the stock market was rising, and 18.4 million jobs were created. When Reagan discussed the debt he said "We don't have a trillion- dollar debt because we haven't taxed enough, we have a trillion-dollar debt because we spend too much." Although the debt increased under President Reagan, the economy was much better off, and he hoped that the economy would help with the debt. When talking about taxes, and his policies Reagan joked "Republicans believe every day is the fourth of July, but the Democrats believe every day is April 15th." Tax cuts are very important today, because in December 2017 President Trump passed a tax cut through congress. President Trump hopes to see the economic growth Reagan did, and the stock market has grown dramatically under President Trump and he has created millions of jobs.
Ronald Reagan creates a diagram to show families how their taxes will decrease dramatically until 1986.
Deregulation
Deregulation was a key aspect of Ronald Reagan's economic policy. Deregulation is removing or reducing the amount of regulation on businesses. With less regulations for businesses to follow, the economy would be free and would grow because businesses can make more money. President Jimmy Carter cut regulations on environmental companies, because of the energy crisis, but Reagan felt more deregulation was needed in the economy. Conservatives feel deregulation is important because you have to give businesses freedom, so they can prosper and stimulate the economy. Many regulations that President Reagan cut were environmental regulations. Reagan faced criticism from Liberals for cutting these regulations for the environment, but it did help with things like oil company, and production. Deregulations are also a big economic goal of President Trump. On the campaign trail, Donald Trump said "For every new regulation, two old regulations must be eliminated." So far less than a year and a half into his presidency, President Trump has cut 22 regulations for every new regulation.
President Trump cuts the red tape on regulations, dramatically decreasing the amount of regulations on businesses, and carrying on the Conservative legacy of President Reagan, and President George H.W. Bush.
Military Spending vs Domestic Spending
Conservatives generally favor spending more on the military even if some cuts will have to come in the Domestic Spending. Under President Reagan, the United States was still in the Cold War against the Soviet Union and Reagan saw the need for increase in military spending. Reagan cut some of the programs form President Johnson's Great Society including food stamps and student loans. However, our military was increasing by about 43% and Reagan came up with a plan for the Strategic Defensive Initiative or SDI. SDI was given the nickname Star Wars as the plan included stopping nuclear weapons coming at the U.S. with lasers. The plan didn't work in that sense, but with all the money that was spent on the SDI and the military in general, the Soviet Union was pressured to spend more on the military and they couldn't keep up with their weaker economy. Reagan's military spending lead to the collapse of the Soviet Union and former British prime minister Margret Thatcher gave Reagan credit saying "Reagan won the cold war without firing a shot." President Trump is also favoring military spending despite some domestic spending sacrifices. In 2019 President Trump wants to spend $716 billion on the military. Domestic spending may decrease, and the debt is uncertain, but in today's world with ISIS and North Korea conservatives want to protect us from foreign threats.
President Reagan explains is SDI plan in an address to the nation.
Immigration
Conservatives, as most Americans are in favor of immigration. However, Conservatives are opposed to illegal immigration. The Immigration Act of 1965 eliminated the immigration quotas and let us accept immigrants from all across the world. This lead to undocumented immigrants getting visas and entering the country illegally. In 1986 President Reagan signed the Immigration Control and Reform Act designed to control the U.S.-Mexican border and deliver punishments for employers who used undocumented immigrants over American workers. The act also gave amnesty to 2.8 million illegal immigrants allowing them to get a path to citizenship. Today immigration is a controversial topic. Liberals want to give amnesty for "dreamers" from countries like Mexico, while Conservatives are against amnesty. President Trump has proposed a compromise with the Democrats were the immigrants would get amnesty, and President Trump would get his wall in return. From the day he announced he was running for President, Donald Trump proposed a border wall between America and Mexico to stop the flow of illegal immigration. In a Republican primary debate the candidate Trump said "We need to build a wall and it has to be built quickly. And I don't mind having a big beautiful door in that wall so people can come in legally. Conservatives love their country and they want to make sure the immigrants that enter our legal and will share that love.
President Trump looks at prototypes for construction of the American-Mexican border wall to stop illegal immigration.