1. Ronald Reagan

2. Rise of Conservatism
1970s: Steady political shift to the right, away from liberalism of 1960s
Economic and political conservatives, religious fundamentalists, and political action committees (PACs) became the driving force in American politics
These groups opposed big government, New Deal liberalism, gun control, feminism, gay rights, welfare, affirmative action, sexual permissiveness, abortion, and drug use
Believed these issues were undermining family and religious values, work ethic, and national security

3. Leading Issues: Taxpayers’ Revolt
1978: Proposition 13 passes in California
Sharply cut property taxes
Conservatives promoted the belief that tax cuts would increase government revenue
Legislation that reduced federal taxes by 30% became the basis for the Reagan tax cuts

4. Leading Issues: Religious Revival
Moral decay was the weekly theme of televangelists in the 1980s
1980: televangelists had a combined weekly audience of million viewers
Campaigned for the return of prayers and creationism in public schools
Right-to-life movement began in response to the Roe v. Wade decision

5. Leading Issues: Elimination of Racial Preference
LBJ committed the government to a policy of affirmative action
Making sure underprivileged minorities and women had equal access to education, jobs, promotions
Economic hardships of the 1970s caused many whites to blame their troubles on affirmative action
“reverse discrimination”
Conservatives intensified campaign to end all preferences based on race and ethnicity

6. Leading Issues: De-Regulation of Business
Business interests were successful in curtailing regulations, achieving lower taxes, and weakening labor unions
Created “think tanks” to promote free- market ideas
U.S. Chamber of Commerce lobbied for pro-business legislation

7. Reagan and the Election of 1980
Made a career as a movie star
Served as governor of California
Almost defeated Ford for the nomination in
Easily won the nomination in 1980
Attacked Democrats for expanding the government and undermining U.S. prestige abroad
“Are you better off now than you were four years ago?”

8. Reagan and the Election of 1980
Rejection of Carter and growing conservative mood gave Reagan 51% of the popular vote, 91% of the electoral vote
Republicans gained control of the Senate for the first time since 1954 and gained 33 seats in House
Along with conservative Democrats, this gave them a working majority in both houses on major issues
1980 election ended a half-century of Democratic dominance in Congress

9. The Reagan Revolution
On the same day Reagan was inaugurated, the 52 American hostages were released by the Iranians
Gave his presidency a very positive start
Two months later, Reagan survived an assassination attempt
Handled the situation with humor and charm, which made him even more popular
Pledged to lower taxes, cut government spending on welfare, build up the armed forces, and create a more conservative federal court
Delivered on all four promises, with some costs

10. Supply-Side Economics (“Reaganomics”)
Argued tax cuts and reduced government spending would increase investment by the private sector
Would lead to increased production, jobs, and prosperity
Contrasted Keynesian economics
Relied on government spending during down- turns to boost consumer income and demand
Critics argued this “trickle-down” economics would mostly benefit the wealthy

11. Federal Tax Reductions under Reagan
Economic Recovery Act of 1981 included a 25% decrease in personal income taxes over three years
Cuts in corporate income, capital gains, gift, and inheritance taxes ensured the greatest tax relief went to the wealthiest Americans
Top income tax rate was reduced 28%

12. Cuts in Federal Spending and Regulation
Republicans cut more than $40 billion from domestic programs like food stamps, student loans, mass transit
These savings were completely offset by massive increases in military spending
Reagan also followed through on his promise to reduce regulations on businesses and industry
Restrictions were eased on savings and loan institutions, mergers and takeovers by large corporations
Loosened environmental protections
Reduced regulations on emissions and auto safety
Opened federal lands for coal and timber production, and offshore waters for oil drilling

13. Labor Unions
Reagan was the former president of the Screen Actors Guild, but took a tough stance against unions
Fired thousands of striking federal air traffic controllers and decertified their union; encouraged businesses to hire strike replacement workers
Anti-union policies led to a decline in union membership from 30% in 1962 to only 12% in the late 1990s
Recession of 1982 and foreign competition hurt workers wages and ability to strike/protest

14. Recession & Recovery
1982: Nation suffered worst recession since the 1930s
Unemployment reached 11%
Recession and a drop in oil prices helped bring inflation down to 4%
As Reagan’s tax policies took hold, the economy began to recovery
Recovery only widened the income gap between rich and poor
Wealthiest Americans benefitted from tax cuts and a deregulated market while standards of living for middle class remained stagnant or declined

15. Social Issues
Reagan followed through on his promise to appoint more conservative justices to the Supreme Court
Sandra Day O’Connor became the first woman on the Supreme Court
This more conservative court scaled back affirmative action and limited Roe v. Wade
Allowed states to place certain restrictions on abortions

16. The Election of 1984 Republicans re-nominate a popular Reagan
Jesse Jackson became the first serious African American candidate to run for the presidency
Democrats nominated Carter’s V.P. Walter Mondale
Geraldine Ferraro became the first woman to run for vice president on a major party ticket

17. The Election of 1984
Reagan took every step except Minnesota (Mondale’s home state)
Two-thirds of all white male voters voted for Reagan
Analysis of the 1984 election revealed only two groups still favored the Democrats:
African Americans
Those who earned less than $12,500 a year

18. Budget & Trade Deficits
Reagan tax cuts and increased military spending created federal deficits of more than $200 billion a year
During Reagan’s two terms, the national debt tripled from $900 billion to $2.7 trillion
Tax cuts designed to increase investment only increased consumption, especially among foreign goods/services
Trade deficit reached a staggering $150 billion a year
Trade imbalance of $1 trillion during the 1980s contributed to more foreign ownership of U.S. real estate and industries
1985: for the first time since the WWI era, the U.S. became a debtor nation

19. Impact of Reaganomics
Tax cuts and reduced regulations put more money in the hands of investors, wealthy Americans
Reductions in government spending contained the growth of New Deal and Great Society welfare programs
The huge federal deficits accumulated during Reagan’s presidency changed future political discussions about federal spending
Instead of asking what new programs might be needed, Reaganomics changed the debate to which government programs to cut and by how much

20. ?
What were the four leading issues for conservative voters during the early 1980s?
What two factors ensured Reagan’s victory in the 1980 election? What was the significance of this election?
What was the fundamental idea behind supply-side economics (Reaganomics)?
What happened to federal spending under the Reagan administration?
How did the economic recovery after the 1982 election affect the differences between wealthy and poor Americans?
What was the effect of Reagan’s conservative appointments to the Supreme Court?
What did an analysis of the 1984 election reveal about voter demographics?
Why did the national deficit and debt increase under the Reagan administration?
What was the result of trade deficits and imbalances in the 1980s?
How did Reaganomics change future political discussions about federal spending?