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<blockquote data-quote="newfie" data-source="post: 6101132" data-attributes="member: 58700"><p>Ronald Reagan's approval rating when he left office in January 1989 was 63%, according to Gallup polls</p><p></p><p></p><p>Several factors contributed to this shift:</p><ol> <li data-xf-list-type="ol"><strong>Trade Imbalances</strong>: Starting in the 1970s and accelerating in the 1980s, the U.S. began running persistent trade deficits. Imports, particularly from Japan and other emerging economies, outpaced exports. This was driven by strong domestic consumption, a rising dollar value, and increasing global competition in manufacturing.</li> <li data-xf-list-type="ol"><strong>Dollar Strength and Reaganomics</strong>: The policies of the Reagan administration in the early 1980s—tax cuts, increased military spending, and deregulation—<strong>boosted domestic demand and attracted foreign capital</strong>. <strong>The Federal Reserve’s high interest rates to combat inflation also strengthened the dollar, making U.S. imports cheaper and exports less competitive. This widened the trade gap.</strong></li> <li data-xf-list-type="ol"><strong>Foreign Investment in the U.S.</strong>: The strong dollar and high interest rates made U.S. assets, like Treasury bonds, attractive to foreign investors. Foreign capital flowed in to finance the growing federal budget deficits (also fueled by Reagan-era spending). This influx of foreign money effectively flipped the U.S. from lending abroad to borrowing from abroad.</li> <li data-xf-list-type="ol"><strong>Decline in Savings Rate</strong>: American households and the government saved less during this period. With lower domestic savings, the U.S. relied on foreign capital to fund investment and consumption, deepening its debtor status.</li> <li data-xf-list-type="ol"><strong>Global Economic Shifts</strong>: Post-World War II, the U.S. had been a creditor by rebuilding Europe and Japan (e.g., via the Marshall Plan). By the 1980s, those nations had recovered, becoming economic powerhouses that exported goods to the U.S. and invested heavily in American markets.</li> </ol><p></p><p>I think your assessment is the only thing fake.</p></blockquote><p></p>
[QUOTE="newfie, post: 6101132, member: 58700"] Ronald Reagan's approval rating when he left office in January 1989 was 63%, according to Gallup polls Several factors contributed to this shift: [LIST=1] [*][B]Trade Imbalances[/B]: Starting in the 1970s and accelerating in the 1980s, the U.S. began running persistent trade deficits. Imports, particularly from Japan and other emerging economies, outpaced exports. This was driven by strong domestic consumption, a rising dollar value, and increasing global competition in manufacturing. [*][B]Dollar Strength and Reaganomics[/B]: The policies of the Reagan administration in the early 1980s—tax cuts, increased military spending, and deregulation—[B]boosted domestic demand and attracted foreign capital[/B]. [B]The Federal Reserve’s high interest rates to combat inflation also strengthened the dollar, making U.S. imports cheaper and exports less competitive. This widened the trade gap.[/B] [*][B]Foreign Investment in the U.S.[/B]: The strong dollar and high interest rates made U.S. assets, like Treasury bonds, attractive to foreign investors. Foreign capital flowed in to finance the growing federal budget deficits (also fueled by Reagan-era spending). This influx of foreign money effectively flipped the U.S. from lending abroad to borrowing from abroad. [*][B]Decline in Savings Rate[/B]: American households and the government saved less during this period. With lower domestic savings, the U.S. relied on foreign capital to fund investment and consumption, deepening its debtor status. [*][B]Global Economic Shifts[/B]: Post-World War II, the U.S. had been a creditor by rebuilding Europe and Japan (e.g., via the Marshall Plan). By the 1980s, those nations had recovered, becoming economic powerhouses that exported goods to the U.S. and invested heavily in American markets. [/LIST] I think your assessment is the only thing fake. [/QUOTE]
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