This cartoon is a prime example of what happens when a trickle-down economy fails to work. Trickle-down economics is anti-liberal as it is a form of government intervention in the economy. As the government tax the wealthy less they provide no benefit for the country, they are only widening the gap between the rich and the poor. By widening the gap they are restricting the political and economic freedom of the citizens. This restriction on the citizens goes against two of the three freedoms (social, economic, political) classical liberalism was founded on.
True, Reagan did increase the size of the military, spent billions on national defense, and fought Communists in Latin America. Yet, more cordial relations with the USSR, arms reductions, and a shift away from anti-Soviet policies characterized Reagan's second term in office. There’s no question that former president Ronald Reagan’s foreign policy ended Communism in Europe. I have come to this conclusion after watching both his “Evil Empire” Speech and his “Mr. Gorbachev, Tear Down This Wall” Speech.
His new program system people liked to call Reaganomics; he would reduce taxes to for the spur economic growth, using the money supply to help reduce the effects of inflation. He started deregulation the economy and a lot of the government spending. As president from 1981 to 1985 he was able to survive an assassination attempt. He took a firm stance at labor unions and he ordered the invasion of Grenada. When re-elections came up again in 1984, he obliterated any chance of anyone else to win in a landslide vote.
Reaganomics is based on the principles of supply-side and the “trickle-down” theory. These theories hold that the decrease in taxes, especially for big
Franklin D. Roosevelt's New Deal vs. Barack Obama's Economic Stimulus Plan Aiding the economy was what both of these plans were meant for. Franklin Delano Roosevelt’s New Deal aided the American economy to get back on track during the 1930's. Due to the economy suffering severely from the great depression this plan was setup to help boast and get the economy going. Barack Obama's Stimulus Plan was also and aid brought out to save the economy. Due to the country facing the biggest economic crisis since the second world war, Obama and Democratic Party leaders suggested an economic stimulus package to confront the crisis.
One of Wilson’s first concerns was to reduce tariffs. He believed that tariffs made it possible “too establish monopoly in domestic markets” and by their removal there would be an increase in competition (35). The Underwood bill, which lowered or abolished most tariffs, actually supported big business and made it harder for small manufactures to compete in
This act provided retirement funds, disability insurance and unemployment compensation on a national scale. FDR also made that the value of the dollar was devalued to help stimulate trade with foreign countries and to support competitive practices in terms of business. With the New Deal in place, assistance was provided to businesses and farms and The National Industrial Recovery Act (NIRA) was passed to stabilize industry. At the time, The Supreme Court deemed that the Agricultural Adjustment Acts and NIRA were unconstitutional. Many people claimed the programs were socialistic and were worried about having a welfare state funded by the government.
We have and now we have the bailout bubble. Stimulus packages were executed in hope to keep the economy going. Unfortunately, both president Bush and Obama put the money from the stimulus package. On top of that, they “burst the bubble” by lowering interest rates even lower! But now we have this giant bubble.
He believed in the concept of comparative advantage, the idea of nations to specialize in specific industries and trade with other nations for products not produced nationally. (David Ricardo) Comparative advantage is the foundation of industrialization as a means for globalisation. Classical economics was very much in fashion till the early 20th century with the advent of the Great Depression. John Maynard Keynes, a British economist, was the founder of Keynesian economics and the concept was first published in Keynes' book The General theory of Employment, Interest, and Money published during the Great Depression. (Keynesian Economics) Keynes attempted to explain the causes of the Great Depression, and how to to deal with the recession.
To what extent did Gorbachev contribute to the break-up of the USSR and the Warsaw Pact? Under the control of Stalin, communist states in Eastern Europe were forced to join the Warsaw Pact in 1955, which was a military alliance against the US NATO. Besides, earlier in 1947, he also launched the Molotov Plan which was an economic assistance to the Soviet satellites, had brought a great economic burden on itself. Luckily, there’s an upturn of Soviet after 1984. Gorbachev, who was the new General Secretary in 1985, was to a large extent contributed to the break-up of the USSR and the Warsaw Pact.