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| Topic: |
History
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| Number of pages / Number of words: |
6 / 1569 |
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Many demand side advocates predicted that this would only increase inflation, unemployment, and lead to a general decline in the economy.
Contrary to these predictions the economy recovered at a rate even faster than the Reagan administration had predicted.
The major problem with the policy at this time was that the congress was still led by demand-side liberals...
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They said that these tax-cuts would produce a budget surplus and instead of using this surplus to offset the revenue loss from taxes, they just increased their spending, which caused the national debt to increase from one to four trillion dollars from 1981 to 1986. Another problem with this supply side ideology was that it was seen as giving the rich more of an advantage, because they were getting more of a tax break than less wealthy peoples...
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