Question

How did reagan suggest keeping the deficit down if taxes were cut?

Answer 1

Answer: cut spending on social programs

Explanation: Ronald Reagan knew that if he cut taxes the federal government would have less money to spend. This would increase the budget deficit. In order to keep the deficit under control, Reagan proposed cuts to certain social programs. Welfare benefits, housing subsidies, and unemployment compensation were some of the programs that were reduced.

Answer 2

President Reagan was a strong believer in Capitalism. He wanted to help businesses create more jobs and invest more. Hence, he opted for large tax cuts to provide relief to the private sector.

His critics on the other hand questioned how the president wanted to control the rising deficit if he keeps on giving tax cuts.

Reagan's answer was simple, he wanted to clamp down on useless government programs which were costing millions of dollars every year. He reduced government workforce, reduce interest rates and kept a close eye on controlling inflation.

All this helped Reagan develop long-lasting economic success