The Conservative Counterrevolution in the Era of Reagan and Bush and The Policy Uncertainty of the Clinton Administration Text: The Reluctant Welfare State By: Bruce Jansson Reporters: Chic Gunderson Loida ruane

Reagan Administration: §Ascendancy of conservatism l Promoted the concept that social programs had not solved poverty l Did not favor social programs to aid the poor l Social spending was incompatible with economic growth l Did not support federal civil rights

Factors That Contributed to the Ascendancy of Conservatism §Declines strengths of Democrats §White backlash led to widespread opposition to affirmative action §Continuing shift of population to the suburbs §Maturing of war-baby generation

Legitimation of Conservatism §Conservative ideology emerged §Conservative think-tank established §National TV show: ”Firing Line” presented conservative views §Top positions in government given to conservatives §Criticism of intellectuals to Democratic Party and Great Society reform §Grassroots following within fundamentalist religious groups §Formation of New Religious-Political Right (NRPR)

The Triumph of Conservatism §Three themes of obsession of Reagan 1. Lower Taxes 2. Increase Defense 3. Social Spending Reduction

Lower Taxes §1981: Economic Recovery Tax Act (ERTA) - Reduced personal and corporate taxes §Tax reform in Drastically reduced the tax rate of affluent Americans - Encourage economic activity *Omnibus Budget Reconciliation Act (OBRA) of Deep tax cuts in social spending and increase in military spending.

Increase Defense §“We’re not building missiles to fight a war. We’re building missiles to preserve peace.” – Reagan OBRA of 1981 Defense budget: $142B $ 368b

Social Spending Reduction §Omnibus Budget Reconciliation Act (OBRA) Eliminated 57 social programs and folding them into 7 block grants : Social Security amendments increase retirement age and reduce some benefits - Steward Mckinney Homeless Assistance Act of 1987: focus was on construction of shelters

Bush Administration: §Maintained defense a priority. §Modest tax increase in 1990 §Minimal increase in social spending §Civil Rights Act of 1991: Anti-discrimination Act §Rodney King case: forced Bush to provide allocation for inner-city programs

Legacy of Reagan and Bush §$4.5 trillion federal debt §Deficit: Reagan $50B/yr while Bush had $352 B in 1992 §Economic situation of the poor worsened §Erosion of real value of paycheck §Over-all tax rates of the poor and working person increased §Many affluent Americans increased their wealth §Labor force was gender segregated.

Social Problems §Lack of medical insurance §Homelessness §AIDS §Growing economic inequality §Poor schools §Poverty in the inner cities §Family violence §Feminization of poverty §Gang warfare

Outgroups §People of Color §Immigrants §Gay men and lesbians §People with disabilities §Women §Children §Aging Americans §Homeless

Social Work Profession §Private practice §Advocacy

Clinton Administration: 1992 – 2000 §The Clinton Presidency: The first two years §1992: Clinton won the election without a mandate - 3-way race, Perot siphoned votes - Tried to institute liberal policies. - Social investments - Health reforms and others - Resurgent Republican minority - Aligned with moderate and conservative Democrats - Americans tired of government gridlock - Made many errors in this period

1993 §Clinton announces tax increases and spending cuts §Places Hillary in charge of task force to develop health reform proposal §Family and Medical Leave Act enacted §Signs the Omnibus Reconciliation Bill, which cuts the deficit, raises taxes, and increases the EICT §Clinton presents ambitious plan to reform health care §North America Free Trade Agreement enacted §Federal policy on gays in the military is modified

1994 §Congress enacts legislation that makes it a federal crime to intimidate abortion clinic workers and clients by force or threat of force §Crime Bill enacted §Some republican leaders issue contract with America §Republicans obtain control of both Houses of Congress

The Third Year: The Newt Gingrich Era §1994: victories of both Houses by conservative Republicans and their “Contract with America” §Clinton gave in to most of Republican budget demands §Spending cuts analogous to Reagan only Congress not President §Clinton successful in slowing down Newt’s agenda

1995 §Congress enacts Omnibus Reconciliation Act which seeks to eliminate the entitlement status of AFDC, Medicaid, and Food Stamps §Clinton vetoes Omnibus Reconciliation Act as well as specific appropriation bills §Government shuts down §Citizens blame Congress not President

1996 §Clinton wins reelection landslide over Dole §Budget stalemate between Clinton and Congress continues §Enactment of the Personal Responsibility and Work Opportunities act §Domestic discretionary spending remained capped §Reelection helps Democrat regain seats §Welfare reform predicted to cause millions of children to fall deeper into poverty

1997 §Balanced Budget Act enacted with extension of caps on discretionary spending §Impeachment of Bill Clinton

1998 §Emergence of federal budget surpluses §Resignation of Newt Gingrich announced

Outgroups §Affirmative action §Immigrants §Children §Women §Gays and lesbians