Was Reaganomics a Success?

Was Reaganomics a Success? by Dan Mitchell.

Among Republicans and conservatives, Ronald Reagan is widely revered as a great President.Fans of the Gipper tell us the economy rebounded, inflation was tamed, incomes rose, unemployment fell, and the Evil Empire was defeated. What’s not to love?

How true are those claims? The level of economic freedom and the economic freedom rankings both improved somewhat.

The poisonous hidden tax of inflation largely disappeared. The unemployment rate fell. Labor force participation increased (in marked contrast with Obama). And there was a big increase in income for average Americans (again, in sharp contrast with Obama).

No wonder, when presented with a hypothetical matchup, the American people said they would elect Reagan over Obama in a landslide.

However Reagan benefited from the beginnings of a huge money/debt bubble. See graph.

hat-tip Matthew