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President Reagan's "Address to the Nation on Federal Tax Reduction"

Definition

This was a speech delivered by President Ronald Reagan where he proposed his plan for reducing federal taxes with an aim towards stimulating economic growth.

Analogy

Imagine you're at school assembly where your principal announces plans for reducing homework load with hopes it will increase students' interest and performance in schoolwork - that’s what Reagan did but on national scale about tax reduction.

Related terms

Supply-side Economics: An economic theory arguing that economic growth can be most effectively created by lowering taxes and decreasing regulation. In our school analogy, this would be like saying less homework will lead students to learn more independently and perform better academically.

Reaganomics: The economic policies promoted by U.S. President Ronald Reagan during 1980s, often associated with supply-side economics; also known as trickle-down economics or voodoo economics. It's like the principal's unique approach to improving student performance.

Tax Cuts: A reduction in the rate of tax charged by a government. In our school analogy, this would be equivalent to reducing the amount of homework assigned.