Money Money Money...Must Be Funny

There is really nothing about economics that appeals me. I didn't even know what it really was until I took a personal finance class in high school. As I read the different articles about different economy theories, I realized that my misunderstanding of the economy is perfectly A-OK.
I had always thought that the economy was just there. Laissez-faire policy, literal translation: to leave alone or allow to do. The government just allows it to run on its own unless a national crisis occurs (kinda like now..). Well I noticed that throughout our nation's history, the economy has drifted to and remains heavily in control by the government. It is a constant debate in politics and many Americans vote based on how the candidates will help improve the economy.

Example:

Reaganomics::

President Reagan promised to lower taxes and domestic spending. He produced the 4 pillars to his theory

1. Reduce government spending,
2. Reduce income and capital gains marginal tax rates,
3. Reduce government regulation,
4. Control the money supply to reduce inflation.

The main idea behind Reagan's ideas is that "big-boss" companies and corporations were hampered by government intrusion.
While his general ideas were good, in reality, deficit spending increased greatly. The national debt went from 700 billion to over 3 trillion US dollars. Government spending had been cut but most of these cuts came through social programs like Education and Welfare.
Reaganomics did create income growth and that fact is now used to argue the plan worked and should be returned to.



Reaganomics is basically the Trickle-Down Theory. Depicted in the picture below, it basically means give money to the big people and it will "trickle-down" to the needy.
In my mind, this plan was formulated well but in order for this theory to work there would need to be spending done, not saving. But thinking of most families, they would want to save their money, not spend it. So, in theory, Reaganomics/trickle-down would work but in reality, it would be difficult to ask people to continue spending when everyone has been taught to save. 

My theory for economics::
Get all global leaders together and give everybody a clean slate. Wipe out all debt. Basically push the reset button on the global economy. With a few handshakes here and there, a unanimous approval, and all the economy's troubles would be wiped away.

From this:

To this:

But I highly doubt anybody would agree with me..