ABSTRACT
Some may argue that the lean years started in the 1970s when the United States (US) went off the gold standard. Others will say it was when organization of petroleum companies took charge of the global economy, ending the days of US economic hegemony and others may argue lean years started in the early 1980s with implementation of Reaganomics. President Reagan shared incremental US wealth with US allies through mounting a defense buildup to wear down the USSR, but the objective of Reagan's tax policy was to provide incentives for creating wealth in the US A major reason for the success of Reagan's tax policies in creating wealth and job growth during the 1980s was the 1986 collapse in crude oil prices. The US deferred capital formation during the cold war to assist other countries in their capital formation and production. Deferred investment in any enterprise—whether it is a business, country, house or people—eventually takes its toll.
