Response to Effect of Reaganomics?

Long time since last post but I don't think the thread is complete, nor completely right. The supply-side tax cuts that Reagan and his advisors initiated did nothing except lower the taxes and create more loop holes. Reagan agreed to a tax increase in 1982 to the tune of 98 billion, 1/4 of his tax cut in a compromise for Volcker to loosen the money supply. Volcker let the M1 money supply grow 15% from July to October which reduced the interest rates. This had more a keynsian pump priming effect due to the recession than that of a supply side tax cut(which says with lower taxes savings and investments increase and more jobs and products are created, allowing even more taxes), however savings actually decreased from 1984 to 1988, while the economy grew( a direct contradiction to supply-side theory). After Volcker ended the monetary experiement the economy grew under the Fed's careful eye, at one point it was even threatened by Reagan about being "independent". While Reagan did have the guts to relect Volcker a second time even though he was a Carter apointee, he knew Volcker was a hawk when it came to watching inflation and that was the reason. Reagan didn't have any insight in the economic scheme, he just knew Volcker could do his job(no commendations there, those that can do a job right should do it). Reagan's point with military increases was if you have the power you don't need to use it, who would start something with a stronger power. Much like the other ideas of Reagan, it seems feasible in the beginning but not adequate in the long run. It's unfortunate this doesn't always work, even more so that George W. isn't following in the legacy of Reagan and his regime by waging war on whoever he sees. Reagan saw a few simple truths, he wasn't a scholar and didn't look for any more answers or questions for that matter. He knew the answer to the simple truths and didn't see anything else. Supply-side economics fit right in with Reagan because it would lower the taxes AND increase revenue, something only a very few supply-siders say works. Reagan never saw what he didn't want to, which was the problem with this. His PR team however was very effective and one of the best, if not the best, and was able to take credit for things that might have been questionable. Reagan inherited a sick economy and left the White House with a vibrant economy, one that had seen 92 months of economic growth. One could and will continue to debate who was responible, but the average people didn't care as long as they had jobs and money and it worked. While Reagan was critical of big government say it didn't work and hindered the american dream and economy, no one should be able to deny the Federal Reserve Board, with Volcker and Greenspan, were major players in the recovering economy as well as proof that the government can promote monetary discretionary methods that improve the economy. While Reagan said big government was bad and the people should watch out for it, he restored the confidence in the presidency after 5 failed presidencies and proved the government was realiable. His contradictions were numerous, to many to list in this brief answer. All of what he accomplished can be undone policy wise, however the one thing Reagan did leave was the reversal of 50+ years of work. We turned away from the good of society to the good of the individual in favor of the "marketplace magic". Where Reagan believed everyone could become rich if they tried, they forgot about helping the poor or even the middle class because in reality they hoped they themselves could become rich. He made liberals reel back in defense as conservatives accussed those who looked out for the group of immoral practices. Americans felt more comfortable looking up to the millionaires than they did for looking at the millions of the poor. The economic disparity grew during the 80s(it started before, and still continues), and following Reagan's mentality people think that it's alright. I believe the 80s were the least harmed by Reagan than today and tomorrow.

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