What economic condition characterized the U.S. economy in the decade leading up to Ronald Reagan's presidency?

Stagflation, characterized by rising prices, high unemployment, and slow economic growth.

Explain the central idea behind the trickle-down theory as it relates to Reaganomics.

Lowering taxes for corporations would lead to investment, job creation, higher wages, and increased spending.

Deregulating businesses, turning government services over to private contractors, and decreasing spending on domestic social programs.

The top income tax rate was slashed from 70% to 28%.

The nation's economy began to recover from stagflation.

11thSocial Studies45 min

I can analyze the social and economic impacts of a historical event.

4 min

Here's Why Reaganomics is so Controversial | History

HISTORY

9 min

Key concepts students will learn:

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Reaganomics refers to the economic policies of Ronald Reagan, the 40th president of the United States.
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Reaganomics was based on the trickle-down theory, which argued that lowering costs for corporations would lead to more jobs and higher wages.
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Reaganomics included deregulating businesses, decreasing spending on domestic social programs, and cutting the top income tax rate from 70 to 28%.

14 min

11 questions • Multiple choice & Short answer

5 min

“Describe one positive and one negative social or economic impact of Reaganomics, as discussed in the video.”

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