Editing Reaganomics (section)

==Justifications==
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In his [[Ronald Reagan presidential campaign, 1980|1980 campaign]] speeches, Reagan presented his economic proposals as a return to the [[free enterprise]] principles, [[free market economy]] that had been in favor before the [[Great Depression]] and FDR's [[New Deal]] policies. At the same time he attracted a following from the [[supply-side economics]] movement, which formed in opposition to [[Keynesian]] demand-stimulus economics. This movement produced some of the strongest supporters for Reagan's policies during his term in office.

The contention of the proponents, that the tax rate cuts would more than cover any increases in federal debt, was influenced by a theoretical taxation model based on the elasticity of tax rates, known as the [[Laffer curve]]. [[Arthur Laffer]]'s model predicts that excessive tax rates actually reduce potential tax revenues, by lowering the incentive to produce; the model also predicts that insufficient tax rates (rates below the optimum level for a given economy) lead directly to a reduction in tax revenues.

Ronald Reagan also cited the 14th-century Arab scholar [[Ibn Khaldun]] as an influence on his supply-side economic policies, in 1981. Reagan paraphrased Ibn Khaldun, who said that "In the beginning of the dynasty, great tax revenues were gained from small assessments," and that "at the end of the dynasty, small tax revenues were gained from large assessments." Reagan said his goal is "trying to get down to the small assessments and the great revenues."<ref>{{cite news |last1=McFadden |first1=Robert D. |title=Reagan Cites Islamic Scholar |url=https://www.nytimes.com/1981/10/02/us/reagan-cites-islamic-scholar.html |work=[[The New York Times]] |date=October 2, 1981 |access-date=July 1, 2019 |archive-date=July 1, 2019 |archive-url=https://web.archive.org/web/20190701153346/https://www.nytimes.com/1981/10/02/us/reagan-cites-islamic-scholar.html |url-status=live }}</ref>