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

THE REPUBLICAN RESURGENCE, America: Past and Present Chapter 32

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

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%

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

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

Recession and Recovery unemployment hits 10% economic recovery rise in consumer spending prices remain level worldwide decline in energy prices

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

U.S. Budget Deficits,

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

Share of Aggregate Household Income by Quintiles,

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

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

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

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

Trouble Spots in the Middle East

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

Trouble Spots in Central America and the Caribbean

Trading Arms for Hostages Advanced weapons sold to Iran for influence in freeing American hostages November, 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”

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

Social Dilemmas AIDS epidemic Drug abuse

The AIDS Epidemic 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 appointment of AIDS commissioner

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

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

The Changing Palace Guard 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

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

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

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

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

The End of the Cold War

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

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.