How did Reagans policies contribute by stimulating the economy?
This is a matter of some debate. Conservatives woud argue that Reagan’s tax cuts caused the economy to improve via what is called “supply-side” economics. They would say that the tax cuts encouraged people to work harder and businesses to expand more. Liberals would point out that Reagan never really cut spending the way he said he was going to. In particular, he increased defense spending a great deal. Liberals would argue that the spending was really what stimulated the economy. No one can really know because both happened together.
