Philosophy of Abenomics

Abstract

It is often customary to attach the name of a president/prime minister who pursues an innovative set of policies that draws a roadmap in economic growth in the near future from the current poor state of the economy. Reganomics or supply side economics of Ronald Regan during 1981-1989 and Clintonomics during 1993-2001 served as classic examples. The basic tenets of Reganomics were widespread tax cuts, decreased social spending and the deregulation of domestic markets. The premise of his policy was the traditional concept of “Trickle Down” theory that a reduction of corporate tax is the best way to stimulate growth; low corporate tax rate would have dual effect; corporate savings would be translated into investment and thus more employment and growth. President Clinton advocated for more humane approach with elements of modernizing the federal government, making it more entrepreneurial and distributing more authority to state and local governments. Download the PDF to read more...