How Reaganomics Changed the Economic Landscape

Here's how Reagan's tax cuts in the 1980s favored corporations and the wealthy, setting the stage for 'trickle-down economics' as we know it today.

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In this episode of A Thread, we delve into the long term consequences of Reaganomics. Ronald Reagan's approach in the 1980s aimed to spur economic growth by deregulating corporations, implementing tax cuts, and altering antitrust laws during his presidency.

At the outset of Reagan's presidency, a changing global landscape prompted the U.S. to adapt. In response, Reagan enacted tax cuts primarily benefiting corporations and the wealthy, introducing the concept of 'trickle-down economics.' Despite promises of job creation and increased wages, the actual outcome differed.

Reagan's alterations to antitrust laws in 1981, specifically in regards to Section 2 of the Sherman Antitrust Act, marked a significant shift. Although some people believed this would help businesses on a global scale, it eventually led to unprecedented market concentration. The Reagan era also saw the legalization of share repurchases by corporations in 1982, diverting profits away from workers and towards investors.

Contrary to the impression that Reaganomics created opportunities, the wealth gap evidently in the U.S. surged. The Pew Research Center graph reveals a divergence in wealth distribution since 1980. Income inequality increased by roughly 20% from 1980 to 2016, resulting in the highest wealth gap among developed countries.

Furthermore, the racial wealth gap, particularly between Black and white households, widened during the Reagan era and has continued to persist ever since. Despite the promises of Reaganomics, the idea that wealth would 'trickle down' has eventually been proven false.

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How Reaganomics Changed The Economic Landscape

[mr.z]

America....the richest country with the poorest people. Thanks Ron.

[kickinghorse]

Thank you!
We tend to forget that the wage inequality gap began with Reagan.

[StevenMacQuarrie]

It is inspiring, that, after all of these years, a wave of information and discussion is villifying Reagan, as he should have been long ago. The damage is done, but can we undo it???

[nathanstephens]

I have a joke about trickle down economics, but 99% of you probably won’t get it.

[Owl]

You're exactly right and not using the Tillman act proves both parties have the same conflicts of interest problems too !

[wendyboester]

Make America Great Again
Sounds familiar

[elliottharris]

He also allowed companies to buy back their own stock. Stock buy backs was once illegal.

[YOSH-KE]

Had a dream that I met Ronald Reagan. He told me that sometimes society can only learn what's correct after learning what's wrong, like lead pipes or moral issues.

[Whitebeardtheking]

The idea of supply side economics is fascinating in that in theory and practice, it works for lowering inflation, interest rates, unemployment, while boosting production and raising wages. In the short term, this can fix the economy experiencing a recession but only in the short term. Where it goes afoul is when there is no significant cuts to pork spending nor enough money pulled from private entities, particularly foreign companies who can be taxed even at a lower rate to pay for government programs in lieu of the government themselves. That said, that indo think the SEC allowing companies to buy back their stock was a strange addition. 🤔 because it allows wafe gap aside, real market manipulating ability by market makers. 😑

[billmitchell]

Clinton and Obama were basically on board with Reaganomics.

[ldwankenobi]

the office of president is becoming counter productive.

[shigshug]

Ronald Reagan Foreign Policies = A

Ronald Reagan Domestic Policies = F

[cdot]

People are so dense.. do you not understand that economic growth is directly correlated with better products and services regardless of economic inequality. The majority of the lower class in the United States is not poor on a global scale by any metric. Yet people will continue to comment about how unfair the system is on their iPhone 15s with a $10 Starbucks coffee in the other hand. All brought to you by billionaires ❤

[brandonhodnett]

One of the worst presidents of all time, from Iran-contra to 80’s recession to his blatant racism…the more I learn about him the more I wish I had a Time Machine and the location of his crib as a baby.

[DEEZEEMTB]

Anyone live through Carter? RR pulled us out of a tailspin

[loriparks]

I sure do miss that Reaganomics Bush administrative cheese 🧀

[JosephLee]

This is most nonsense video on Reagan who practically saved the American economy on the verge of collapse. Inflation was in double digits because of the Carter Administration. You need to give Reagan credit lowering inflation.

[Chad_Max]

What a gynocentric video. Trickle down economics is not about money moving from the top to the bottom, it’s about opportunities being created at the bottom bc of money moving at the top. Those opportunities give you the chance to work your way up to the top. Of course, this concept will be lost on anyone who feels entitled to a handout…

[MediaSoundBites]

And there was more blacks higher within the post office in president Reagan administration.