Final answer:
Reaganomics was an economic policy implemented by President Ronald Reagan in the 1980s, focusing on cutting taxes and reducing government regulation. It aimed to stimulate economic growth and increase investment. However, it also led to higher deficits and faced criticism for benefiting the wealthy.
Step-by-step explanation:
Reaganomics was the economic policy implemented by President Ronald Reagan in the 1980s. It was based on the theory of supply-side economics, which focused on cutting taxes, reducing government regulation, and controlling inflation.
The goal was to stimulate economic growth and increase investment, with the belief that benefits would trickle down to the rest of society.
The Reagan tax cuts led to higher deficits in the United States, and while some supporters praised its positive effects on the economy, critics argued that it primarily benefited the wealthy and contributed to income inequality.