Did Reagan's Policies Encourage People to Save & Invest?

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Did Reagan's Policies Encourage People to Save & Invest?

Advantages

  • As the economy came out of recession, people began to save & invest
  • Confidence in the market increased wealth

Disadvantages

  • Deregulation caused financial organisations to take dangerous risks to win more customers
  • Savings & loans industry crisis in the late 1980s
  • 1987 stockmarket crash

Evaluation

Much like the 1920s, Reagan's policies (particularly deregulation) led to businesses and financial organisations taking major risks when speculating on the stockmarket. This eventually came to a head & led to a stockmarket crash, but this was on a scale much, much smaller than that of the Wall Street Crash of 1929.

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Worence

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Inna_Sheobhain

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