See: Bonzo.
Reaganomics: the conservative economics policy implemented by Reagan.
Reaganomics wasn’t out of the blue. It was done to combat the 1980 recession and the most dreaded thing of all: stagflation. Stagflation is when the recession is still continuing, along with inflation (rising prices), which is counterintuitive to what many economic theories say will happen (usually, we see inflation with economic expansion, not contraction).
Reaganomics, in short, was a supply-side economic policy, or trickle-down, i.e. making things easier on the higher-ups (wealthy people) and firms (run by the wealthy people) in an attempt to boost the economy. The thought was that, by cutting business regulations, income taxes, and capital gains taxes, wealthy people will spend (and invest) more. Spending, in theory, is what gets the economy back on track, into expansionary mode.
If wealthy people were spending and investing their dollars, instead of just letting it sit there, the idea was that it would create more jobs and more spending by the masses, which would lead to more economic growth. Money would “trickle down” from high-income earners to low-income earners.
Besides cutting business regulations, income taxes, and capital gains taxes, Reaganomics also cut the growth government spending and the expansion of the money supply. This is notable, since the mainstream macroeconomics running our government today, Keynesian economics, would want to do the opposite: increase government spending and the money supply. These two things would give the people more money to spend, in theory.
So...the million-dollar question: did it work? Well, that’s up for debate. Supporters point out waning stagflation and GDP growth. Critics point out the widening income gap, saying money trickled up, not down...as well as the national debt, which tripled in a mere eight years.
Related or Semi-related Video
Econ: What is Maslow's Hierarchy of Want...3 Views
and finance Allah shmoop What is Maslow's hierarchy of wants
and needs Perhaps no other psychological theory has affected the
public mind as muchas Maslow's hierarchy of wants and needs
Seriously though Abraham Maslow came up with this theory in
the nineteen forties away to organize ideas about how humans
are motivated in the field of developmental psychology with what
makes them tick What makes them want Maazel's hierarchy of
wants and needs been used in psychology sociology and management
providing kind of a framework for this old people taking
things Usually Maslow's hierarchy of needs is shown in a
pyramid shaped image with the basic needs of the bottom
and higher level Motivating factors up here at the top
of the pyramid shape isn't like ours Food pyramid reflecting
the amounts of things we need you know to survive
Instead think of Maslow's hierarchy of needs as a pyramid
that's meant to be climbed Maslow's original theory was that
a person must be satisfied with the factors at one
level within themselves before they could be motivated by factors
at the next level Well Mohr modern interpretations show the
five levels as overlapping their blurred implying that lower levels
might be prioritized again down the road even if someone
is you know higher up on the pyramid in general
we're going to talk about Bob's journey here through Maslow's
theories Bob could be you your mom your friend or
that stranger you just passed on the street Yeah deep
inside everyone is Bob the base of the pyramid We've
got physiological needs which includes things like food water rest
shelter and the ability to you know live in the
environment in general Well here The idea is that it's
hard to motivate Bob with something like prestige when he's
too busy trying to meet basic physiological needs so that
he can you know just stay alive Bob's got bigger
things to worry about right now If he's homeless food
lists and you know pantless alright well once Bob's got
the basics of staying alive down he can move up
to the safety motivation level up here which says that
Bob can then be motivated by things that give him
security like think physical safety financial security health You know
those things make sense that once Bob's got his food
water in things that he needs to live seek out
security so that he can keep those things under lock
and key and you know keep on keeping on basic
mortality avoidance At this point Bob's Fed rested and not
stressing out so much because survival instincts took a chill
pill thanks to his safety measures Good job you know
a place to live maybe wearing a bike helmet Occasionally
you go bob pants Don't forget the pain's bob Finally
Hopkins start looking outward into the world The third level
of hierarchy here It's love and belonging right The human
needs for closeness with one another In other words nothing
will motivate Bob more at this point than making friends
taking the singles bar by storm pay Well Bob made
friends at work and managed to snag a girlfriend Honestly
Nice Bob Bob's now capable of being motivated by things
that level for his self esteem Bob will be motivated
by things that give him confidence in a sense of
accomplishment Well for Bob maybe a nice car makes him
feel confident Or maybe Bob doesn't care for a nice
car but he's really into his career working his way
up the quote prestigious unquote corporate ladder Whatever Bob's values
are well he can be motivated by things that can
fulfill them making him feel Fly fly Bob Fly right
Well now that Bob's taking care of his basic needs
in his physiological needs well he has time to fight
focus on himself again But in a you know higher
way Well at the top of the Pyramid the big
boss of the video game that is Bob's Life Well
we've got self actualization right there Self actualization is when
Bob feels his utmost potential If Bob's motivated at this
level while that means Bob wants to be the best
Bob he can be well for Bob This might have
to do with fulfilling creative passions using his talent finding
a you know life partner and raising Tiny Bob Yeah
that'LL do it After publishing his theory Mass Low later
criticized his own initial description of self actualization And while
he changed it to be more like becoming enlightened or
something like that would mean that Bob things about meaning
of life things about spirituality morality the universe and seize
prejudice for what it is a fear based ego boosting
mean girl thing Bob becomes a true wiseguy Astle's hierarchy
of wants and needs does have its fair share of
critics It's not accepted by everyone Some believe that people
can be motivated by needs and wants higher up on
the pyramid even if they haven't satisfied all the ones
on the bottom first Others have pointed out mass low
on ly studied healthy specimens not the population at large
So there could be some bias there some bargain The
Massa lt's hierarchy only works for people in individualistic societies
and not so much for people in collectivist societies Help
priorities and values are different Plus these needs might also
be a different depending on Bob's age Right The final
kicker maybe Massa lt's pyramid isn't really human Needs can
be applied to most animals in general Massell insisted that
this motivation theory needed to be people center cannot animal
centric He was a man of his time Today we
know more than ever before about how the other species
live and communicate The more we learn the more mass
ALS hierarchy of wants and needs seems to apply to
them just as much as it does for us especially
for the first four five levels So could mass low
have come up with a better theory Well yeah Maybe
he could have if he'd been more motivated The sweet 00:05:40.087 --> [endTime] sweet irony Oh no