Why would federal deficits increase because of reaganomics?

1 Answer
Apr 13, 2018

He cut taxes on the wealthy and yet increased the military budget

Explanation:

Reaganomics is based on a criticism of state intervention, he famously said "Government isn't the solution, Government is the problem" in his inauguration address. Like Thatcher, he was influenced by both Friedman and Hayek, he favored "rolling back the state", he cut taxes mostly for the wealthy( and increased them for the rest of the population several times). Nevertheless, the military budget reached historic heights during his two trms and it contributed to widening federal deficits. In his farewell address, he said it was his biggest regret.