Election of 1980

Jimmy Carter Democrat President of the United States Running Mate: Walter Mondale

Ronald Reagan Republican Former Governor of California Running Mate: George H.W. Bush

Key Issues Economy of 1970s Low economic growth High inflation High interest rates

Iran hostage crisis Followers of Ayatollah Khomeini take control of US Embassy Capture 52 citizens Held for 444 days US perceived as weak

Who won?

Reagan Electoral Vote – 489 Popular vote - 43,903,230 Carter Electoral vote – 49 Popular vote - 35,480,115

President Reagan

Reagan’s First Term Assassination attempt March 30, 1981 Shot in Washington by John Hinckley, Jr Bullet misses heart by 1 inch

PATCO Strike 1981 Air traffic controllers strike If workers “do not report for work within 48 hours, they have forfeited their jobs and will be terminated."

Environmental Laws “We will mine more, drill more, cut more timber” policy of issuing leases for oil, gas, and coal development on tens of millions of acres of national lands more than any other administration in history, including the current one

Reaganomics Economic plan Reduce taxes to stimulate economy Cut federal budget Implements supply side economics Tax-cuts and business incentives stimulate the economy Investment encourages economic growth which results in an increased supply of goods and services

Reagan was coming from this very simple proposition: If you lower the tax rate, then more people will work, there will be more income in the economy and everyone's lives would be better." –Reagan Chief of Staff Ken Duberstein

% income tax cut Recession getting worse Unemployment numbers rise More homeless

How did Reaganomics Work Tax cuts for upper-income Americans and business Individuals would invest their tax savings Business would use this to expand and hire new workers Expanding business would generate more tax revenue This would eliminate the budget deficit Budget Deficit: amount by which government spending for a year exceeds Government income

Did it Work? 1981 and 1982 unemployment rose, and government revenues plunged Federal Spending Increased With less tax money to pay for increased Govt. spending: Deficit Skyrocketed

Election of 1984 Reagan vs. Mondale

How did Reagan Win? Gross National Product (GNP) increase 25% during Reagan years Inflation remained in check

Second Term Tax Reform Act of 1986 maximum tax rate on individual and businesses fell millions of low-income people escaped income taxes altogether Family income for richest one-fifth of population increased by 11.1 percent from ‘79- ’87 Millionaires doubled during decade Billionaires grew from 13 to 51

Everyone Else? Poor people increased from 11.7% to 13.5% of U.S. Population from HIGHEST POVERTY RATE IN INDUSTRIALIZED WORLD

Number of full time workers earning below the poverty level rose From 12% to 18% Homelessness grew 1 out of 4 were women and Children National Debt Rose from about $900 billion in 1980 to $3 TRILLION in 1990