ussed later in the report (Sahu 8).Manipulating the nation’s labor supply was another objective of the administration ‘s economic structure. Two major policies were designed to increase work effort in the country. The first policy reduced marginal and personal income tax rates, the second involved reformation of public-assistance programs (Sahu 8). The goal of the two policies was to spur entrepreneurship and increase the incentives of those who were dependent on some sort of public assistance, i.e. food stamps and welfare. The Morris 6underlying goal was to cut federal spending on the programs that the less fortunate were overusing and replace it with higher per capita incomes.Regulatory reform and market efficiency were also a large factor in Reagan’s economic policy. Author Ronald L. Tracy:“Supply-side economists believe that government regulation of industry increases the cost of doing business and imposes impediments on the free market. Deregulation will reduce costs and will consequently shift the aggregate supply curve to the right, increasing the real output. Accordingly, Reagan supply-side policies emphasized regulatory reform to strengthen the forces of the free market.”(9)Ronald Reagan’s free market ideology was the cornerstone of his policies. He felt that any hindering of the market by the government or its laws ruined the chances of the United States being the best in the world in any market. Only by reviewing the outcome of his efforts will one be able to decide whether he was right.The securities market was a large part of Reagan’s free market and deregulation idea. The Stock Market crash of 1987 and the corporate takeovers during his administration redirected regulatory reform from Washington to Wall Street. The administration had a history of leniency enforcing regulations and now the problems were surfacing. One Reagan supporter notes that… the Administratio...
