Question

Which of these statements best describes the u.s. economy during the 1980s and early 1990s?

a.dependence on foreign oil led to record high gas prices.
b.american businesses exported far more than they imported.
c.there was a widening income gap between the rich and poor.
d.high military spending resulted in shortages for consumers?

Answer 1

there was a widening income gap between the rich and poor: tax cuts for the wealthy under Reagan led to increasing numbers of people under the poverty line.

In 1970 the wealthy made 30 to 1 to the workers, by 1990 the ratio was 160 to 1. This growing gap is due to stagnate wages, inflation of prices, and increased taxes for the middle and lower classes.