How much was the federal budget deficit in 1986?
From $74 billion in 1980, the federal budget deficit ballooned to $221 billion in 1986. It fell back to $150 billion in 1987, but then started growing again.
What happened to the economy in the 1980s in the US?
But by 1983, the economy had rebounded and enjoyed a sustained period of growth as the annual inflation rate stayed below 5 percent for the remainder of the 1980s and part of the 1990s. Why did the American economy experience such a turnaround in the 1980s?
Did the Tax Reform Act of 1986 raise the cost of capital?
However, the ’86 reform included other provisions that actually made the cost of capital higher in spite of the lower corporate tax rate. In 2016, the Tax Foundation modeled a series of past tax reform bills, including the Tax Reform Act of 1986. This was the output of the model. Stay informed on the tax policies impacting you.
What caused the drought of 1986 and 1988?
Farmers continued to suffer, and serious droughts in 1986 and 1988 compounded their distress. The increased military budget — combined with the tax cuts and the growth in government health spending — resulted in the federal government spending far more than it received in revenues each year.