US Can't Grow its Way Out Of Debt.

[Rajoo]

President Reagan was a proponent of supply-side economics, which favors reducing income and capital gains tax rates in order to encourage economic growth. He believed that the savings generated by companies from corporate tax cuts would trickle down. That is, the savings would be invested in ways that benefited smaller businesses, spurred innovation, created new jobs, and eventually benefited the population as a whole.

Those expectations did not all take shape exactly as planned. During President Reagan's two terms in office, unemployment fell considerably, disposable income rose, and inflation was brought under control.

However, the expectation that decreased taxes on the wealthy and businesses would result in increased spending on goods, services, and salaries failed to materialize. Moreover, President Reagan’s relaxed regulation contributed to the savings and loan crisis.

By the early 1990s, the U.S. economy had fallen back into recession.

And history will repeat again in 2025.

https://www.investopedia.com/terms/v...oeconomics.asp