Ronald Reagan’s economic achievements were among the most important accomplishments of his presidency, says Bruce Bartlett, senior economist at the National Centre for Policy Analysis in the U.S. When he took office in January 1981, the U.S. economy was suffering from many ills, including slow growth, high inflation, rising unemployment and unprecedented interest rates.
To appreciate the magnitude of Reagan’s achievement, it is important to recall just how bad the economic situation was in 1980:
Nevertheless, by 1986 the U.S. inflation rate was down to just 1.1 percent and real gross domestic product was rising at a healthy pace. The unemployment rate and interest rates were still stubbornly high, but on a downward trend. Although the U.S. economy had suffered a sharp recession from July 1981 to November 1982, it was far less severe than most economists expected, given the drop in inflation.
Source: Bruce Bartlett, Reagans Legacy, National Centre for Policy Analysis, June 7, 2004.
For text http://www.ncpa.org/edo/bb/2004/200400607.htm
For more on Economic Issues http://www.ncpa.org/iss/eco/
FMF Policy Bulletin/ 14 June 2004
