Even though Reaganomics worked for the most part, what two things caused the Federal deficit to soar? bailing out savings and loan companies too many people unable to pay high taxes huge growth in defense spending too many Federal government regulations

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Alicia Stanton

23 June, 10:43

Even though Reaganomics worked for the most part, what two things caused the Federal deficit to soar? bailing out savings and loan companies too many people unable to pay high taxes huge growth in defense spending too many Federal government regulations

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Jonas Buck · Answer 1

"huge growth in defense spending" and "bailing out savings and loan companies" were responsible for a dramatic growth in government debt. The war spending had to do mostly with the Cold War.