While Ronald Reagan was president of the United States, the federal deficit increased from 2.6 percent to 6 percent and then, by 1988, fell to 3.1 percent. Because of this, he is often credited with reducing the deficit.Continue Reading
For President Reagan to decrease the federal deficit, he had to employ unique tactics as he firmly believed in cutting taxes for individuals. Reagan passed bills and laws in order to make it tougher for people to evade taxes.
He closed tax loopholes and also reduced a number of different federal tax breaks. Most notably, President Reagan passed reform legislation for Social Security to require those that received higher amounts to pay taxes on a portion of the benefits that they received.Learn more about Economics
Nancy Reagan is the widow of former U.S. President, Ronald Reagan. Famous for her "Just Say No" anti-drug campaign, she was First Lady during her husband's two presidential terms, spanning from 1981 to 1989.Full Answer >
A government budget deficit can affect the economy in many ways, most notably it may force the government to print more money to finance the deficit, decreasing the value of the nation's currency. However, running deficits can be beneficial in the short term, as it allows the government to increase GDP and continue to provide the services that allowed it to secure loans from other governments initially, according to About.com.Full Answer >
Some interesting federal budget deficit statistics include that the Congressional Budget Office estimates that the federal budget deficit for 2015 is $426 billion and that the deficit as a percentage of gross domestic product declined each year between 2009 and 2015. The 2015 budget deficit comprises approximately 2.4 percent of the U.S. gross domestic product.Full Answer >
Commercial banks link parties with excess funds to those with a deficit of funds. They also foster economic growth, underwrite securities, act as monitors and minimize instabilities, according to Franklin Allen and Elena Carletti in "The Oxford Handbook of Banking." Banks are important players in payment systems, reports economist Sanderson Abel for The Herald.Full Answer >