Did Reagan's Policies Stop Inflation & Unemployment?

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Did Reagan's Policies Stop Inflation & Unemployment?

Advantages

  • Inflation began to fall (11.3% in 1979; 13.5% in 1980; 6.2% in 1982)
  • Unemployment fell after 1983

Disadvantages

  • 1981: Sharp rise in interest damaged industries that bought supplies on credit (car manufacture; agriculture) or had loans on a long pay-back period (construction)
  • The recession deepened
  • Unemployment rose from 7.1% to 9.6% in 1983

Evaluation

Although inflation and unemployment fell overall, both increased dramatically in the first two years of Reagan's presidency.

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