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Reaganomics, a portmanteau of Reagan and economics, has been used to describe, and decry, the economic policies of U.S. President Ronald Reagan during the 1980s. Reagan assumed office during a period of high inflation and unemployment, which had largely abated by the time he left office. It continues to be a matter of contentious political debate to what extent this was caused by Reagan's fiscal policies (especially tax cuts) and to what extent it was due to external factors.//In a July 10, 1987 White House Briefing for Members of the Deficit Reduction Coalition, Ronald Reagan said of Reaganomics: "America astonished the world. Chicago school economics, supply-side economics, call it what you will — I noticed that it was even known as Reaganomics at one point until it started working [laughter] — all of it is fast becoming orthodoxy. It’s not just that Milton Friedman or Friedrich von Hayek or George Stigler have won Nobel Prizes; other younger names, unheard of a few years ago, are now also celebrated."The small, across the board tax cuts initiated by Reagan at the start of his administration were based on principles from supply-side economics or the trickle-down effect. This was contrary to the demand-side economics of traditional Keynesianism, which tries to bring the economy to its existing full capacity by means of increasing demand, primarily through fiscal policy. In the 1970s, many on the right became critical of Keynesianism, which they claimed brought higher inflation without any gains in employment. However, true Keynesianism, which called for deficit spending during recessions and surplus saving during periods of prosperity, was rarely implemented in its totality in US politics, usually because political considerations overshadowed fiscal policy
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