The 1980s MOST displayed which economic trend?
1 Answer
Laissez faire
Explanation:
Ronald Reagan put forward his economic theory which was called Reagonomics. He defended the nonintervention of government in the economy, during his inauguration address he famously said "Government is not the solution to our problems, Government is the problem". He cut taxes for the wealthy but increased it otherwise for the Middle Class.
Government intervention and keynesianism had been the main economic trend in the thrirty years that followed WWII. Nevertheless it was discredited in the years 1970s when stagflation emerged (combination of inflation and unemployment), it contradicted Keynes since inflation in his theory unemployment could not be combined with inflation.
Reagan reduced the size of the federal government except in the defense sector due to the confrontation with the Soviet Union. He was criticized for not reducing the deficit and for growing the national debt tremendously. His two terms as president were nicknamed the "conservative revolution".
