The contrasting arguments
What follows is another answer to the question – reaganomics facts: good, bad, failed or successful? The main criticism of Reagan’s policies is that they oppressed the poor and made life harder for them. However, that is simply an attempt to subvert his influence and reduce the gains he made during his Presidency. The truth is, Reagan actually attempted and mostly succeeded in exempting most of the poor from having to pay federal income taxes. How did he achieve this task? Basically by doubling the personal exemptions allowed. Hence, families with income under $14,000 paid little to no taxes at all, which allowed them to spend this money on their necessities. In 1986, the Tax Reform Act was passed, which further helped the poor.
As I mentioned earlier, the inflation rates decreased significantly which was excellent news for the poor. This, combined with the rise in employment meant that the poor actually enjoyed a better standard of living during the Reagan era. Another way that the media tried to detract from Reagan’s achievements was by citing inequality in pay structures. Mainly, the media would claim that the proportion of income earned by the bottom 20 percent fell in Reagan’s time. However, they ignored the fact that the total income of the bottom 20 percent actually increased. It’s just that the total wealth also increased vastly and the remaining 80 percent earned a greater proportion of that wealth.
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