DEBT, LIES, AND REAGANOMICS.

UNITED States economy, 1981-2001; REAGAN, Ronald, 1911-2004; UNITED States politics & government, 1981-1989; PUBLIC administration; ECONOMIC policy; ECONOMIC development; PUBLIC debts; PUBLIC finance

The article offers a look at the economic conditions during the 1980s under the administration of former U.S. President Ronald Reagan. Arguments have been circulating to deny the real economic growth experienced by the country during Reagan's regime. One of which was that the public debt acquired during the 1980s laid the foundation for future economic weakness. Another was that the economic policies of the Reagan administration encouraged the accumulation of private debt for unproductive purposes. Fortunately, financial figures explain a different scenario. For instance, the Reagan tax policies yielded revenue performance that did not diverge from the postwar period. For fiscal 1950-1977, outlays are estimated at 19.7 percent, while during fiscal 1982-1989, the figure increased 23.2 percent. It reflected the rise in outlays for defense and net interest. Speculations surrounding the accumulation of private-sector debt under the administration of Reagan represent the ultimate in analytic absurdity. His economic policies have been blamed for increased consumer debt to finance frivolous consumption, for growing business debt unrelated or harmful to real economic performance, and for useless financial strategies.