I don't know about that, reaganomics (according to wikipedia):
"Reagan delivered on each of his four major policy objectives, although not to the extent that he and his supporters had hoped", and notes that the most substantial change was in the tax code, where the top marginal individual income tax rate fell from 70% to 28%,"
Which equates to: the richest people in america pay the same tax rate as you or I which is a paltry sum to them, a major sum to regular folk.
- Reduce government spending,
- Reduce income and capital gains marginal tax rates,
- Reduce government regulation, THIS IS THE BIGGY!!!!!
- Control the money supply to reduce inflation.
This is the key factor in allowing the lunatics to run the asylum which resulted in the current situation the world is in today. This was the start of removing the US as the leading economic power and handed it over to China (and other countries).
I am in no way shape or form an economist or a money manager but I do know this much: if given the oppurtunity (and Reagan did) Greed will surpass common sense. (ask an union man and he is proof positive of that theory).
As much as I hate government interference on life, without regulation a crash inevitably results. To use the DOT as an example: without regulations (ie speed limits, lane marking, traffic lights, road taxes etc) it would be utter chaos on the roads. (More so than it is now). Take that same "idea" and apply it to Wall Street and voila, you have a recession.
Take the current housing situation in the US: A lender has the ability to take a lower interest rate, and make less money but GREED says: NO EFFIN WAY I WANT IT ALL. So what do they do? Reposess in record numbers. So much so that they shoot themselves in the feet (both of them this time) and reduce the value of the reposessed properties to the point where they will NEVER make a penny profit and in fact, lose 90% of their initial investment.