How did Ronald Reagan's policies affect the economy?

Reagan's economic policies (personal tax rate reduction, deregulation) resulted in one of the biggest booms in History of the United States of America - an economic expansion of unparalleled magnitude: more than 20 million new jobs (half of them "high paying"- i.e. higher than the median wage), reduction in unemployment to 15-year lows, some $30 trillion of wealth created. read more

Reagan's economic policies are called Reaganomics. Reagan based his policies on the theory of supply side economics. It says tax cuts encourage economic expansion enough to broaden the tax base over time. The increased revenue from a stronger economy is supposed to offset the initial revenue loss from the tax cuts. read more