n’s laissez-faire policies reflect sound economic thinking and appreciation of the academic literature on corporate takeovers and the microstructure of securities markets” (Davis 133). Reagan eventually Morris 7responded to the questions, establishing a Presidential Task Force on Market Mechanisms, or the Brady Commission. The administrations final analysis… “resisted demands for sweeping changes in market mechanisms, and instead opted for a minimal regulatory response’ (Sahu 11).Now that there is an explanation and understanding of Ronal Reagan’s supply-side economic policy, one can begin to view the outcome of each subdivision of the policy and the positives and negatives that accompany each section. The following opinions will produce a breakdown of the preceding agenda, manufacturing a final analysis of whether or not each policy was successful.Supply-Side Economics and the Laffer Curve IdeologyPresident Reagan and his supply-side economic theory was based on cuts in marginal tax rates in production that concurrently raised a net return and thus caused an increase in production supply. This theory was not as extreme as Laffer’s theory. Reagan felt that, by Laffer’s model, such an increase in production would render the ability to cut income taxes significantly (25%). The cut in income taxes would raise activity in the market, jumpstart supply, raise the average American’s taxable income, and subsequently heighten overall tax revenue. Unfortunately for Reagan, output had no chance to compensate for such a large cut. The enormous budget deficits incurred by the Reagan Era confirms this notion and leaves little if any debate. In President Reagan’s defense, logistically his supply-side economy never followed through long enough to see if it would have worked. Besides his Economic Recovery Tax Act of 1981, the majority Morris 8of his policies for the next seven years r...
