Economics 1980-1992 (Reaganomics) From 1980-1992, President Reagan attempted to relieve the American economy of stagflation and recession.

His Supply-Side Economics plan, also known as Reaganomics or Trickle Down Economics, temporarily relieved the American economy of recession only to push it back into the depressed state in 1990 as a result of increased military spending. The economy was dying due to inflation, oil shortages, and high unemployment rates. Throughout his presidency, Reagan kept his promise of tax reduction, reduced government welfare spending, and reduced military spending. Reagan envisioned that through Reaganomics, tax cuts would be made which would in turn reduce government spending which would then lead to an increase investment in the private sectors, which therefore would result in the increase of production, job and prosperity. This countered the philosophies of Keynesian economics which advocated government spending to repair the economy. Reagan successfully asked Congress for a 25% reduction in tax over a three year timeframe. In addition, during his first term Reagan with the help of Republicans and Bollweevils cut $40 billion from domestic program spending. In addition to tax cuts, Reagan also lifted restrictions upon businesses. Secretary of the Interior James Watt permitted the exploitation of natural resources off of federal reserves. Many of these exploitations include coal mining, timber production and off shore oil drilling. By 1990, the United States plummeted back into a recession as a result of increased government spending on military build up. The economy was worse off than it was before. The United States had $200-$300 billion in debt annually.