After the dismal financial failure of the nineteen seventies, under President Jimmy Carter, America began to have hope when Ronald Regan took office in nineteen eighty- one. President Regan pledged to cut taxes, and reduce government spending, and restore the economy once again in the Unites States. We were in an economic downturn that put the United States in the middle of the worst recession since that before the Great Depression. The nineteen eighties brought new hope and good fortune to many. The mechanics of what is now known as "Reaganomics" are somewhat complicated, but contributed to the financial stability for many millions of Americans. The new tax laws and new federal income statutes changed the scene of the economic front in the United
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This pattern continued with real estate tax policy. Homeowners were able to "write off" taxes that were paid on the property and deduct interest that was paid during the fiscal year. Taxes and home values were not the only way that Americans could benefit from their homes. In nineteen eighty, interest rates on mortgage loans were a staggering eighteen percent, and fell to approximately nine percent midway through the decade. A one hundred-thousand-dollar mortgage payment at 18% was $1500.00. The same loan payment at 9% was $800.00. Americans could double the amount of money saved just in interest alone. With nothing more than simple planning, Americans homeowners were paying less for more valuable property. The unemployment rate was now at an all-time low and more Americans were in the workforce now. Many homes were now two-income families, giving families even more disposable income. The United States was also experiencing a strong bull market, middle class homes were making hundreds of thousands in the stock markets. In the mid-eighties, it seemed like nothing could stop the flow of money. Many Americans middle class citizens were now
This pattern continued with real estate tax policy. Homeowners were able to "write off" taxes that were paid on the property and deduct interest that was paid during the fiscal year. Taxes and home values were not the only way that Americans could benefit from their homes. In nineteen eighty, interest rates on mortgage loans were a staggering eighteen percent, and fell to approximately nine percent midway through the decade. A one hundred-thousand-dollar mortgage payment at 18% was $1500.00. The same loan payment at 9% was $800.00. Americans could double the amount of money saved just in interest alone. With nothing more than simple planning, Americans homeowners were paying less for more valuable property. The unemployment rate was now at an all-time low and more Americans were in the workforce now. Many homes were now two-income families, giving families even more disposable income. The United States was also experiencing a strong bull market, middle class homes were making hundreds of thousands in the stock markets. In the mid-eighties, it seemed like nothing could stop the flow of money. Many Americans middle class citizens were now