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Reaganomics When Ronald Reagan entered the White House in 1981, he immediately put into effect a dramatic new economic policy that came to be known as “Reaganomics”. Republicans describe Reagan’s period as an “era of prosperity- a decade when America reasserted its economic and military might” (Moore 1). Democrats, on the other hand, would accuse Reaganomics of causing huge budget deficits, economic decline, and wider income gaps between the rich and poor. There is no denying that the deficit increased significantly from 1980 to 1988, but many other positive economic changes also occurred during that period. Although Reagan could not achieve all of his economic goals, the nation and its economy ultimately benefited from his policies. Reaganomics had four main policy objectives: “(1) reduce the growth of government spending, (2) reduce the marginal tax rates on income from both labor and capital, (3) reduce regulation, and (4) reduce inflation by controlling the growth of the money supply” (Niskanen 1). The goal of these objectives was to increase savings, investment, and economic growth. Balancing the budget, restoring healthy financial markets, and reducing inflation and interest rates were also key