-
1980
Inflation - 13.5
Consumer confidence Index - 64.5
Consumer price Index - 82.4
GDP - 0.2%
GDP per capita - $12,575.6
Unemployment rates - 7.1%
Interest rates - 18%
Business Cycle - Peak
Discount Rate - 12 -
Fiscal Policy
The economic program proposed by the Reagan administration at its inception in 1981 was designed to reduce government spending and taxes relative to the economy’s total output. As a first step in implementing the program, the administration proposed a phased reduction in tax rates over the three years from 1981 to 1983. This was to be accompanied by reductions in the level of spending proposed by the Carter administration for fiscal year, 1982. However the 1981-82 recession intervened. -
1980 Details
The American economy was suffering through a deep recession. Business bankruptcies increased to over 50 percent of the previous year. Farmers were particularly negatively impacted due to a combination of reasons, including a decline in agricultural exports, falling crop prices and rising interest rates. -
Period: to
The reserve ratio was 10%
The Economic Recovery Tax Act of 1981 slashed the highest rate from 70 to 50 percent.Then, the Tax Reform Act of 1986. -
Embargo On Soviet Union
President Jimmy Carter announces the embargo on sale of grain and high technology to the Soviet Union due to the Soviet invasion of Afghanistan. -
Reagan Elected President
Ronald Reagan, the former Republican governor of California, beats President Jimmy Carter and independent candidate John B. Anderson, also a Republican, in a landslide victory, ousting the incumbent from office. The victory in the Electoral College, 489 to 49, as well as an 8 million vote margin in the popular vote over Carter, ensured a mandate for the new president. -
1981
Inflation - 10.3
Consumer Confidence Index - 70
Consumer Price Index - 90.9
GDP - 2.6%
GDP per capita - 13,965.8
Unemployment Rates - 7.6%
Interest rates - 12%
Business Cycle - Expansion
Discount Rate - 13 -
The Hostage Negotiations
The inauguration of Ronald Reagan as the 40th president of the United States occurs in Washington, D.C. It was followed by the release of the fifty-two Americans still held hostage in Tehran. The Iranian hostage crisis, which lasted four hundred and forty-four days, was negotiated for the return of $8 billion in frozen Iranian assets. -
1982
Inflation - 6.1
Consumer confidence index - 68
Consumer price index - 96.5
GDP - 1.9%
GDP per capita - 14,410.2
Unemployment rates - 9.7
interest Rates - 8.5
Business Cycle - Trough
Discount Rate - 10 -
Greatest Unemployment
The highest unemployment rate since 1940 was recorded at 10.4%. By the end of November, over eleven million people would be unemployed. -
1983
Inflation - 3.2
Consumer confidence index - 87.5
Consumer price index - 99.6
GDP - 4.6
GDP per capita - 15,531.2
Unemployment rates - 9.6
interest Rates - 9.25
Business Cycle - Reagan spent on defense
Discount Rate - 8.5 -
1983 Rebound
By 1983 the economy rebounded. The American economy enjoyed a sustained period of economic growth as the annual inflation rate stayed below 5 percent for the remainder of the 1980s and part of the 1990s. -
1984
Inflation - 4.3
Consumer confidence index - 97.5
Consumer price index - 103.9
GDP - 7.3%
GDP per capita - 17,099.3
Unemployment rates - 7.5%
interest Rates - 8.25
Business Cycle - Expansion
Discount Rate - 8.5 -
Los Angeles Olympics
The opening ceremony of the Los Angeles Olympic Games is held. The games run by Peter Ueberroth, prove a financial and U.S. success, despite a retaliatory boycott by most allies of the Soviet Union due to the U.S. boycott of the 1980 Moscow games. -
1985
Inflation - 3.5
Consumer confidence index - 93.2
Consumer price index - 107.6
GDP - 4.2%
GDP per capita - 18,231.8
Unemployment rates - 7.2%
interest Rates - 7.75%
Business Cycle - Expansion
Discount Rate - 7.5 -
1986
Inflation - 1.9
Consumer confidence index - 94.8
Consumer price index - 109.6
GDP - 3.5%
GDP per capita - $19,087.4
Unemployment rates - 7%
interest Rates - 6%
Business Cycle - Reagan cuts taxes
Discount Rate - 6.25 -
1986 and federal budget
Still, serious problems remained. Farmers' problems continued, and their suffering was compounded by serious droughts in 1986. There was also the fluctuations of the federal budget, that made many worry about the stability of the economy.
