Question

2. Why did Reagan and conservative Republicans believe that tax cuts would help all Americans?

Answer 1

Reagan and conservative Republicans believed that tax cuts would help all Americans by stimulating economic growth, increasing potential output, and creating more job opportunities.

Step-by-step explanation:

President Reagan and his economic advisors believed that tax cuts would help all Americans because they subscribed to the theory of supply-side economics. The theory behind this is that by reducing taxes on the wealthy, they would have more money available to invest in their businesses, which would create jobs and stimulate economic growth

Thus, they argued that high taxes were discouraging people from working harder and investing more in businesses. By reducing taxes, Reagan and conservative Republicans believed that it would stimulate economic growth, increase potential output, and create more job opportunities for all Americans.

Answer 2

His idea, which was shared by many conservatives, was called supply-side economics, or trickle-down theory. They argued that by cutting taxes for the elite, the corporations would be able to expand their company and thus bring in new jobs, helping everybody in the process. As a result, they believed that the economic benefits will seep, or "trickle-down" to the poor.

If you are taking APUSH, you should also note that liberals wanted Keynesian economics, where they believed that the key to economic success was for the government to spend a lot of money to keep the economy circulating.