When
President
Ronald
Reagan
began
his
first
term
in
1981
,
the
US
economy
was
____________________
.
Unemployment
rates
were
high
and
getting
higher
,
and
in
1979
,
inflation
had
peaked
at
an
all
-
time
high
for
peacetime
.
In
an
effort
to
____________________
these
issues
,
Reagan's
administration
introduced
a
number
of
economic
policies
,
including
tax
____________________
for
large
corporations
and
high
-
income
earners
.
The
idea
was
that
tax
savings
for
the
rich
would
cause
extra
money
to
____________________
down
to
everyone
else
,
and
for
that
reason
,
these
____________________
are
often
referred
to
as
trickle
-
down
economics
.
From
the
80s
to
the
late
90s
,
the
US
saw
one
of
its
longest
and
strongest
periods
of
economic
growth
.
Median
____________________
rose
,
as
did
rates
of
job
creation
.
Since
then
,
many
politicians
have
invoked
trickle
-
down
theory
as
a
____________________
for
tax
cuts
?
but
did
these
policies
actually
work
,
either
in
the
sense
of
____________________
economic
growth
,
or
in
terms
of
improving
circumstances
for
Americans
?
Would
they
work
in
other
circumstances
?
To
answer
these
questions
,
the
main
things
to
consider
are
whether
the
impact
of
the
tax
cut
on
the
government
?
s
tax
____________________
is
harmful
,
whether
the
money
saved
in
taxes
actually
____________________
the
economy
,
and
whether
stimulating
the
economy
actually
improves
people
?
s
lives
.
The
idea
behind
tax
cuts
is
that
if
taxes
are
too
high
,
people
will
be
less
willing
to
work
,
which
would
ultimately
____________________
tax
revenue
.
So
at
a
____________________
tax
rate
,
the
government
might
actually
gain
more
tax
money
that
it
can
theoretically
put
towards
improving
life
for
its
citizens
,
because
people
will
work
more
when
they
get
to
keep
more
of
their
____________________
.
Of
course
,
there
?
s
a
____________________
to
how
much
the
government
can
cut
taxes
:
at
a
zero
tax
rate
there
is
no
tax
revenue
regardless
of
how
much
people
are
working
.
So
while
cuts
from
a
very
high
tax
rate
might
be
fine
,
cuts
from
a
lower
tax
rate
might
be
____________________
,
hampering
the
government's
ability
to
____________________
crucial
things
.
