What did Reagan's economic policies primarily aim to stimulate?

Reagan's economic policies, often referred to as "Reaganomics," primarily aimed to stimulate consumer spending as a means of driving economic growth. Central to these policies was the belief that reducing taxes, particularly for individuals and businesses, would increase disposable income. This increased income would encourage consumers to spend more, thereby stimulating demand for goods and services. The idea was that as consumer spending rose, it would lead to business expansion, job creation, and ultimately a flourishing economy.

Reagan's administration implemented significant tax cuts, deregulation, and aimed to control inflation, creating a favorable environment for consumers to spend. The focus on consumer spending as a driver of economic growth was rooted in the supply-side economic theory, which suggested that lowering barriers for consumers and businesses would lead to dramatic increases in overall economic activity.

In contrast, while government spending, foreign investment, and charitable donations may play roles in the economy, Reagan's approaches specifically targeted consumer behavior as a critical lever for rejuvenating the economy during the economic challenges of the late 1970s and early 1980s.