New Hopes, New Fears: Reagan to Obama
The Election of 1980
Ronald Reagan (1981-1989) Republican
Conservative Policies Under Reagan and Bush Goal: Stimulate the economy Cut government spending on social programs and lowered income taxes Result(s): Little change in programs benefitting middle class Cuts in programs benefitting the poor Tax cuts mainly for those with higher incomes Interest rates ↓, Inflation ↓, Stock Market ↑, Unemployment ↓, National Debt ↑, Productivity ↓ Increased military spending Defense Department budget almost doubles Revival of missile and bomber airplane programs Proposal to develop the Strategic Defense Initiative (Star Wars) SPEND THE SOVIETS OUT OF EXISTENCE!
Conservative Policies Under Reagan and Bush Goal: Promote traditional values and morality Named conservative judges to the Supreme Court and other federal courts Result(s): Conservative opinions on abortion rights, affirmative action, racial discrimination, rights for women and minorities, and the rights of the accused
Conservative Policies Under Reagan and Bush Goal: Reduce the size and power of the federal government Cut the EPA budget and appointed EPA administrators sympathetic to business Result(s): Ignored Canada’s pleas to reduce acid rain Public land sold to developers at bargain prices Continental shelf opened to oil and gas drilling Timber cutting in national forests Eased restrictions for coal mining
Terms to Know Supply-side economics (Reaganomics, trickle-down economics) the idea that a reduction of tax rates will lead to increases in jobs, savings, and investments, and therefore to an increase in government revenue Sandra Day O’Connor first woman appointed to the Supreme Court
Social Concerns of the 1980s Health Rapid spread of HIV/AIDS (rising costs of care) Legalized abortion v. increasing restrictions Rising drug use and drug-related crime Education Lagging test scores High illiteracy rates Cities White flight decreasing tax revenues high unemployment crumbling infrastructure poor sanitation, schools, health services increasing homelessness
Foreign Policy After the Cold War Nation: Soviet Union Key Individuals: Gorbachev, Yeltsin Key Events and Trends: Signing of the INF and Start II treaties Exclusion of the Communist Party from any government role Glasnost (the open discussion of social problems that was permitted in the Soviet Union in the 1980s) Perestroika (the restructuring of the economy and the government instituted in the Soviet Union in the 1980s)
Foreign Policy After the Cold War Nation: Germany Key Individuals: N/A Key Events and Trends: The opening of the Berlin Wall Reunification of East and West Democracy
Foreign Policy After the Cold War Nation: China Key Individuals: N/A Key Events and Trends: Economic reform Student marches/protests Tiananmen Square demonstrations Economic liberalization
The Iran-Contra Scandal: “Arms for Hostages” Reagan administration illegally sold arms to Iran (over 1500 missiles) Congress banned CIA activity in Nicaragua U.S. CONGRESS NICARUAGUA Democratic Contras fight the Cuban-backed Sandinistas. Reagan called the Contras “the moral equivalent of the Founding Fathers.” IRAN Iran secretly requested arms from the U.S. to fight Iraq. Iranian terrorists in Lebanon were holding 7 Americans hostage. Denied “trading arms for hostages” $18 million of Iranian arms money illegally sent to the Contras Iran paid the U.S. $30 million; 3 hostages released (3 more taken)
The Iran-Contra Scandal: “Arms for Hostages” Impacts: Press hounded Reagan Did he know? Did he not know? Which was worse? Reagan himself was cleared of wrongdoing Reagan’s popularity dropped (only 14% of Americans believed Reagan had not traded arms for hostages) Continued distrust of American government Reagan’s image of honesty was tainted
Foreign Policy After the Cold War Nation: Iraq Key Individuals: Saddam Hussein, Norman Schwarzkopf, President Bush Key Events and Trends: Iraqi invasion of neighboring Kuwait Operation Desert Storm Iraq successfully repelled from Kuwait; but Hussein left in power