 Productivity decreases  Unemployment rate increases  Inflation from 1.6% to 9%  Interest rate increase  Government Increased Role 1. Regulation.

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Presentation transcript:

 Productivity decreases  Unemployment rate increases  Inflation from 1.6% to 9%  Interest rate increase  Government Increased Role 1. Regulation increase 2. Money Supply increase

 Reduce the Inflation rate 1. Federal Reserve reduced the rate of money growth 2. Followed by a decrease in interest rates  Increase Economic Growth 1. Increased employment, spending, saving, and investment  Reduced role of Federal Government and an enhanced role for State and Local Government

 Cutting growth rate of Federal spending  Reducing personal income tax rates  Creating jobs by increasing the depreciation rate for business investment and equipment  In cooperation with the Federal Reserve, making a new commitment to monetary policy that will restore a stable currency and healthy financial markets

 Encouraging people to work, save, and invest more 1. Income tax cuts for 3 years 2. Cutting top tax bracket from %70 to %50 3. Tax cuts will put an end to making inflation profitable for federal government

 By executive order all regulatory activity is subject to review by the Executive Office of the President  President Reagan’s support for a gradual and less volatile reduction in the growth of the money supply to decrease inflationary pressures

 Policies enacted have substantially reduced inflation  Anti-inflationary policies have lowered the interest rates  Policies that are in place should lead to a vigorous economic recovery in 1982  “The private sector works best when the Federal Government intervenes least”