1. Reagan in Power Roosevelt coalition continues to splinter Vietnam Civil Rights (Democrats lose Deep South) Republican party picks up pieces

2. THE REPUBLICAN RESURGENCE, 1980-1992 America: Past and Present Chapter 32

3. The Reagan Victory 1980 Carter’s negatives Iranian hostage crisis economic ills Reagan’s positives win the election warm telegenic personality optimistic message draws Jewish, working class vote Republicans win majority in the Senate

5. Cutting Spending and Taxes Reagan’s premise: cut spending to encourage private investment Reagan cuts over three years federal spending by more than $40 billion social services included in cuts taxes cut by 25%

6. Limiting the Role of Government Environmental regulations relaxed Attempted cuts in Social Security Neglect of interest-group opponents labor hurt in air traffic control firings lack of support for civil rights legislation women ignored in judicial appointments

7. Reaganomics Reagan’s reductions in spending and taxes prompt conflicting expectations Supply-side economists expect economic growth Reagan’s critics expect massive deficits, economic stagnation

8. Recession and Recovery 1981-1982--unemployment hits 10% 1983--economic recovery rise in consumer spending prices remain level worldwide decline in energy prices

9. The Growing Deficit Basis for the Reagan hopes for prosperity includes massive deficit spending massive inflows of foreign investment 1983--federal budget deficit $200 billion Spending caps on defense, services 1985--U.S. becomes a debtor nation

10. U.S. Budget Deficits, 1980- 1997

11. The Rich Grow Richer Gains of Reaganomics inflation reduced to 4% employment grows after 1982 growth in service sector jobs Losses of Reaganomics high-paying manufacturing jobs decline increasing social inequality wealthy benefit poor left in poverty middle class hurt

12. Share of Aggregate Household Income by Quintiles, 1975-1995

13. Reagan Affirmed Perception of improving economy 1984 election Reagan trounces Walter Mondale Republicans lose seats in Congress

15. Reagan and the World Reagan determined to restore America's international position Steep increase in military spending Aggressive foreign policy

16. Challenging the "Evil Empire" Reagan: Soviet Union the "focus of evil in the modern world" Unfavorable deals on arms reductions U.S. response to Russian refusal deployment of cruise missiles in Europe development of anti-missile system SDI – Strategic Defense Initiative - “Star Wars” Russians build up nuclear arsenal

17. Turmoil in the Middle East 1982--Israeli invasion of Lebanon International response U.S., France send troops to maintain order PLO evacuates Beirut 1984--200 U.S. Marines killed in terrorist bombing in Beirut U.S. evacuation of Lebanon

18. Trouble Spots in the Middle East

19. Confrontation in Central America Intervention against Latin American leftist insurgents Covert subversion of Sandinistas October, 1983--invasion of Grenada

20. Trouble Spots in Central America and the Caribbean

21. Trading Arms for Hostages Advanced weapons sold to Iran for influence in freeing American hostages November, 1986--Iran-Contra scandal profit from Iran arms sales to Contras funding violates Congressional prohibition against trading with Iran!! Reagan escapes impeachment Col. Oliver North takes “the heat”

22. Reagan the Peacemaker 1985--Mikhail Gorbachev assumes power in Russia 1985-88--Reagan-Gorbachev summits 1987--destroy intermediate range missiles 1988--Afghanistan evacuated Foreign policy triumphs restore Reagan’s popularity

23. Social Dilemmas AIDS epidemic Drug abuse

24. The AIDS Epidemic 1981--AIDS first detected apparent confinement to homosexual men results in early public inaction spread to drug users, recipients of blood transfusions prompts panic Reagan Administration’s response fund research little funding for education, prevention 1987--appointment of AIDS commissioner

25. The AIDS Epidemic (2) 1996--500,000 infected majority homosexuals, drug users 15% heterosexual, non-drug abusers 1996--AIDS death rate begins dropping new drugs safer sexual practices

26. The War on Drugs Mid-1980's--crack cocaine introduced addiction spread through all classes exploding crime rate Reagan attempts interdiction of supply (H.W.Bush, Clinton continue Reagan policy) At the end of the century there seemed to be no end to the war on drugs

27. The Changing Palace Guard 1985--Donald Regan chief of staff Second-term victories tax reform package appointment of conservatives Changes in the Supreme Court Senate blocks Bork appointment to Court Bush appointments help turn the Court more to the right

28. Passing the Torch to Bush (H.W.) Republicans hope for major political realignment Factors reinforcing trend 1980s economic boom promise of the end of the Cold War

29. The Election of 1988 Republican George Bush Democrat Michael Dukakis Bush television ads attack Dukakis as soft on crime, unpatriotic Bush wins White House Republicans lose seats in Congress

31. Bush’s Domestic Agenda Problems of 1989 savings and loan industry facing collapse ballooning federal deficit Bush’s deficit reductionBush’s deficit reduction raise taxes (had promised otherwise) raise taxes (had promised otherwise) cut military expenditures cut military expenditures Economic recession increases deficit

32. The End of the Cold War June, 1989--Tiananmen Square November, 1989--Berlin Wall torn down 1991-1992--U.S.S.R. dissolved, Communist Party outlawed in Russian Republic Cautious response by Bush

33. The End of the Cold War

34. Waging Peace 1989--U.S. invasion of Panama August, 1990--Iraq occupies Kuwait January, 1991--Operation Desert Storm Outcome of Desert Storm February 24--Iraqi force collapses Bush’s approval hits 90%

35. Republican Economic Woes 1990 budget deal violated Bush’s “no new taxes” pledge Also failed to reduce budget deficits Economic recession prolonged One term president…relatively unknown Gov. of Arkansas, William Jefferson Clinton will win in 1992.