Did Reagan's Policies Reduce the Deficit? - Advantages and disadvantages table in A Level and IB History

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Created by: RhiannonHarradine
Created on: 28-03-17 16:29

Did Reagan's Policies Reduce the Deficit?

Advantages

Taxes were cut
Reagan tried to reduce federal spending & welfare spending

Disadvantages

Increased dramatically, from $59bn in 1980 to $208bn in 1983 (14% of federal spending was in loan repayments)
More borrowing from abroad. USA became a significant borrowing country for the first time
Welfare & federal spending cuts resisted
Defence budget rose from 23% to 28% of federal budget by 1987

Evaluation

This was one of Reagan's most notable failures. He was unable to make the cuts he wanted, and defence spending rose significantly. Much of this was funded by loans from other countries, which added to the deficit.

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