Reaganomics was economics policies which were propelled by United States President, Ronald Reagan during 1980s. These policies were based on fours pillars namely; reduction of the growth of government spending, reduction of income and capital gains marginal tax rates, reduction of government regulation of economy, and controlling of the money in supply so as to reduce inflation. Their basic aims were to lower taxes and create a leaner government. According to Reagan his decision was informed on stimulation of the economy taxes, financed by borrowing. Lowering taxes was aimed at reviving the economy, which in turn would see the increased tax revenues being used to offset the debts incurred (Niskanen …show more content…
The reforms which range from privatization, right sizing, banking reforms, insurance reforms health care reforms, due process and debt reliefs are quite beneficial and geared towards building sound platform. But all in all benefits of current reform measures are accruing to the high echelon of society (Niskanen 1988).
Under such policy of the supply side economics, the elites and corporate moguls have considerably prospered not in tandem, but at the expense of greater society. They are the class referred to as comprador bourgeoisie. For majority of ordinary citizens like me, life expectancy has dwindled remarkably. Unemployment and layoff of workers has been the order of the day. Life quality and food consumption has considerably worsened off. This is at the expense of the few privileged fellows who treat themselves to the national resources. Rationalization of public sectors benefits and elimination of subsidies goes on to help alleviate excessive government expenditure. To the citizens there have not been adequate alternatives or appropriately deployment of the savings to cushion the impact on the impoverished citizens. Evidence suggests that majority of the citizens are not employed and therefore poverty level is on the rise. To the rich there are many options for investing, this is because they are minimally constrained to what they purchase (Boskin 1987).
Nowadays investment into any business infrastructure no longer comes in the form