One of President Ronald Reagan’s (1981 to 1989) economic policy was to encourage U. S’s older basic industries to reduce out-mode capacity and adapt newer technologies. The government channeled research and development funds to emerging and technology industries and encourage business formation wherever entrepreneurs see a promising opportunity. Additional plans was developed to provide workers with technical education needed for high-skilled jobs.

• Reagan’s plan to shrink America's basic industries has been enormously successful. America’s basic manufacturing started to decline, especially in sectors that face the largest increases in foreign competition. With US manufacturing reduced domestic capacity and set up low cost operations abroad, some 2 million jobs have been lost in US’s old-line basic manufacturing businesses since 1970s. The adverse impact of Japanese competition on US employment became particularly harsh in the recession of 1980-1982.

• While US manufacturing jobs has been stagnant, the number of US service jobs has exploded. Service jobs now account for over 86% percent of all private sector jobs in 2018. This also led to the financialization of the US corporation — the process of putting shareholders first, often at the expense of workers.

a. Will you comment on Reagan’s economic policy and whether Reagan’s plan was successful in advancing US technology, innovation, and economic power?

b. What were some of the major issues faced by the older, less educated workers in the industrial belts that was created by Reagan’s economic policy?

c. Why did US Multinational and Wall Street supported Reagan’s economic policy?

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a President Ronald Reagans economic policy of encouraging US older basic industries to reduce outdated capacity and embrace newer technologies while c... View the full answer