Before 1981, America had fallen into a period of “stagflation,” a combination of a “stagnant economy” and “high inflation.” Characterized by high taxes, high unemployment, high interest rates, and low national spirit, America needed to look to something other than Keynesian economics to get out of this low ebb. During the 1980 election, Ronald Reagan's campaign focused on a new strand of economic policy. His goal was to transform the economy into “a healthy, vigorous, growing economy [that offers] equal opportunity to all Americans, without barriers born of bigotry or discrimination.” Reagan's policy, later known as "Reaganomics," included a four-point plan that cut taxes, reduced government spending, created an anti-inflationary policy, and deregulated some products. Although 'Reaganomics' has been successful in both controlling “stagflation” and promoting economic growth, it has been and always will be an extremely controversial topic regarding the redistribution of wealth. Soon after taking the oath of office, Reagan implemented the first of many tax cuts. The Economic Recovery Tax Act, passed in 1981, reduced taxes by 20 percent at the highest income levels and by 25 percent at all lower income levels. Further tax cuts, implemented in 1986, reduced taxes for high income earners by another 28 percent and those with lower incomes by 15 percent. These cuts were implemented on the basis of the principle that tax breaks for the upper classes of society would encourage investment and spending, creating new jobs for low-income individuals. While these acts helped America during a time of economic crisis, they had consequences that are still felt today. During the Reagan presidency the distribution of wealth shifted unfairly towards the individuals... at the center of the map... the one who would get us out of a situation we had never been in. Works Cited"American President: Ronald Wilson Reagan: Impact and Legacy." Miller Center. University of Virginia, n.d. Web. November 10, 2013. Auxier, Richard C. “The Reagan Recession.” Pewresearch.org. Pew Research Center RSS, December 14, 2010. Web. November 13, 2013. Bartlett, Bruce. “Why Reagan's Tax Cut Worked in 1981 and Why It Wouldn't Work Today.” Capital Gains and Games by Stan Collender. CapitalGainsandGames.com, August 13, 2011. Web. November 14, 2013."LIFE AND TIMES." REAGANFOUNDATION.ORG. Np, nd Web. November 15, 2013. “Reaganomics.” Ushistory.org. Independence Hall Association of Philadelphia, n.d. Web. November 12, 2013. “Reaganomics: What We Have Learned.” News from the Consortium. Np, nd Web. November 15, 2013.Viksnins, George J. “Reaganomics After Twenty Years.” Georgetown.edu. Georgetown University, n.d. Web. 12 November. 2013.