Chapter 30, Section 1 The Conservative Revolt Main Idea: The election of Ronald Reagan in 1980 ushered in a new era of conservatism in politics and public policy.

A. The Conservative Agenda In response to an expanding federal govt since FDR in the ’30s, conservative Republicans, led by Reagan, looked to reduce “big govt” and its social programs in the ’80s & called for a return to traditional values Moral Majority- Jerry Falwell’s religious group that helped conservative candidates get elected Conservative Goals: 1.Cut spending on social programs (welfare, etc.) 2.Return to traditional values (religion, family, patriotism) 3.Reduce regulations on businesses 4.Lower taxes 5.Reduce size of federal government 6.Balance federal budget

The Conservative Revolution Conservatives of the 1980’s felt that “big government” was a problem and that the government should limit costly social programs and not interfere too much with business practices.

B. The Reagan-Bush Era Ronald Reagan defeated Jimmy Carter in the 1980 election, promising to “Make America Great Again.” Reaganomics – Reagan’s economic program 1.Cut taxes so people could save &/or spend the extra $, helping banks & businesses 2.Cut federal spending on social programs to reduce size of govt 3.Deregulation – reduce restrictions on businesses Reagan’s Balance Sheet –Plus: economy boomed, 16 million jobs created while in office, inflation held in check –Minus: military spending skyrocketed as Cold War tensions increased, creating a $240 billion deficit

Ronald Reagan led the conservative revolution, serving as President from 1980 – Reagan’s Economic Plan: - large tax cuts that were meant to stimulate the economy - spending cuts to costly social programs

Mixed Results: While the economy grew, the country suffered from a record budget deficit. (Example: $240 billion deficit in 1986) · The budget deficit was caused by a large increase in military spending, along with massive tax cuts, which made it impossible to create a balanced budget.

B. (continued) Bush’s Economic Troubles –Won ’88 election, promising, “Read my lips... No new taxes” (not a good idea!) –Had to raise taxes to avoid cutting popular programs, weakening the economy –Banking crisis: banks failed due to risky loans (deregulation) not being paid back –Downsizing: many business laid off workers to cut costs, creating high unemployment –Recession: economic slump (milder than depression) Conservatives on the Court –Reagan & Bush appointed 5 new justices while in office, including the 1 st woman (Sandra Day O’Connor), shifting the Supreme Court to conservative

President George H.W. Bush: · Pres. George H.W. Bush continued Reagan’s policies with his famous promise, “Read my lips. No new taxes.” “Read my lips. No new taxes.” · However, by 1990, the economy was in a recession, forcing Bush to raise taxes.

C. Clinton & the Conservatives Bill Clinton defeated George Bush in ’92 election Reduced federal deficit (surplus by 1998) Pushed for health care reform to cover most Americans, but Congress defeated it (too $ & intrusive) Conservatives Win Control –1994 congressional elections gave control of both houses to the Republicans (1 st time since ’50s) –“Contract With America”- Newt Gingrich’s plan to cut welfare & taxes, reduce environmental restrictions –Limited length of time someone could be on welfare in order to encourage people to find jobs Clinton’s Impeachment & Trial –While being investigated for real estate dealings as Gov. of AR, Pres. Clinton lied under oath about an improper relationship with a White House intern (Monica Lewinsky) –The House impeached him (only 2 nd time ever), but Senate acquitted him (most of voting was along party lines)

President Bill Clinton: · Pres. Clinton won the election of 1992 on the hopes that he could help the nation’s troubled economy. Clinton went on to win reelection in 1996 as well.

· In 1996, Republicans, led by Newt Gingrich, took control of both houses of Congress and challenged the President on tax increases and spending programs. Newt Gingrich, Time Magazine’s 1995 Man of the Year

D. The Bush II Era George W. Bush defeated Al Gore in the 2000 election by a very narrow margin –Gore won the popular vote, but disputed ballots in Florida, where Bush had a slim lead, caused the electoral vote to be in doubt (ironically, Gov. of FL was Bush’s brother) –The Supreme Court ruled to stop a recount, giving the election to Bush (majority of Court was conservative) Bush as Presid ent –No Child Left Behind Act for schools is very controversial (favors some schools over others?) –Sept. 11, 2001: terrorist attacks on the Pentagon and World Trade Center caused Bush’s popularity to soar –In 2002, Republicans control both houses & Presidency