1. The Rise of the Modern Conservative Movement
Ronald Reagan
The Rise of the Modern Conservative Movement

2. Ronald Reagan Born in Illinois, 1911 Active in college.
Lifeguard, Radio Announcer
Went to California to launch an acting career during the Great Depression
Successful actor
Eventual president of the Screen Actors Guild (Union for Actors)
Became increasingly conservative in face of radical socialists and communists in the movie industry
Switched from Democratic to Republican Party in the late 50s/early 60s

3. Modern Conservative Evolution 1930s-1960s
New Deal opponents
Eisenhower and ‘Modern Republicanism’
Barry Goldwater (AZ) conservative Senator.
Opposed government activism
Opposed social security
Opposed Federal Civil Rights laws (not necessarily local or state)
Demanded military buildup to defend against Soviet attack
Opposed Great Society - extension of New Deal.
Overextension of what needs government could or should meet

4. Conservative Evolution and Organizations
Young Americans for Freedom
William F. Buckley
Barry Goldwater
Disenchanted Southern Democrats
Some ‘fringe’ organizations
John Birch Society (though most - including Reagan, et al - distanced themselves from this group)

5. Richard Nixon & the Welfare State
Trimmed social welfare programs of the Great Society
Did not cut them altogether
Established OSHA (Office of Safety and Health Administration)
Established EPA (Environmental Protection Agency)
NEW FEDERALISM - Re-distributed federal monies to states
Covertly gutted high $ federal programs of their ‘liberal’ intent by redirecting funding
Source: Schulman 1970s, Restless Giant by James T. Patterson

6. Social Issues and Conservatism
Rapid cultural change of the 1960s
Opposition to Warren Court decisions
‘criminal rights’
Church-state issues like school prayer
Privacy rights/issues
Rock music
Openly sexual, drug-oriented, rebellious
Widespread Use of illegal drugs

7. Social Issues and Conservatism
Radical and increasingly violent student protests
Reagan strongly opposed FSM (Free Speech Movement - radical) on UC-Berkeley campus
Dismissed UC president
Opposed ‘sexual’ revolution
Said Birth control pill encouraged promiscuous behavior

8. Social Issues and Conservatism
1973 Roe v. Wade Supreme Court decision
Legalized abortion by striking down state laws prohibiting abortions
Launched modern pro-life movement (aka ‘anti-abortion’)
Opposed emerging gay rights movement
Opposed radical feminism
Blamed these for decline of traditional nuclear family
Rising divorce rate
‘No-fault’ divorce laws (ironically passed during Reagan’s term in California)

9. Social Issues and Conservatism
Civil Rights:
Federal government laws = end of state mandated segregation
Opposed forced and unreasonable integration (forced busing)
Opposed Affirmative Action quotas - said it was reverse discrimination
Democratic Blue Collar Workers - called “Reagan Democrats”

10. The 1980 Election

11. The New Conservative Coalition The NEW RIGHT
The NEW RIGHT - a political coalition of:
Conservative evangelical Christians
Moral Majority founded by Rev. Jerry Falwell - Baptist minister (founder - Liberty University - Lynchburg, VA)
To restore Christian Values in America
Southern Democrats
Reduction of Social Programs
Called for reduction in size and scope of government
“Reagan Democrats”
Favored return of US military prominence
Patriotic focus

12. The 1980 “Revolution”
Nixon Victories in 1968 and 1972 early indicators of change
Carter’s series of ‘Unfortunate’ Events
Carter’s perceived mishandling of major challenges
Reagan’s ability to communicate - “The Great Communicator”
Few simple well-articulated idea

13. The Country Turns to the Right.
1980’s: Ronald Reagan
The Country Turns to the Right.

14. The Reagan Revolution 1980-1988
Ronald Reagan took office in 1981 defeating Carter and based his political ideals on positions of the conservative movement.

15. Conservative Coalition
Reagan appealed to Evangelicals- Christians who emphasize the authority of the bible
Moral Majority- Political lobbying group headed by Jerry Falwell in 1979 who wanted their voices heard “pro-life, pro-family, pro-moral, and pro-America”
New Right- Political Movement which focused on conservative causes

16. Map 30.4 Presidential Election of 1980 (p. 903)

17. The Reagan Revolution and the First Inaugural Address
“In the days ahead I will propose removing the roadblocks that have slowed our economy and reduced productivity. Steps will be taken aimed at restoring the balance between various levels of government. Progress may be slow, measured in inches and feet, not miles, but we will progress. It is time to reawaken this industrial giant, to get government back within its means, and to lighten our punitive tax burden. And these will be our first priorities, and on these principles there will be no compromise.” - Ronald Reagan 1981

18. Reagan almost dies….
1981- attempted assassination by a mentally unbalanced man, John Hinckley Jr.
Reagan was shot but recovered rather quickly.

19. Reagan’s Plan Reducing the size of the Federal government
Lowering government spending
promoting traditional morality and values
stimulating business by reducing government
regulations and lowering taxes
strengthening the national defense

20. Supply-Side Economics a.k.a “Reaganomics”
Cut taxes to put more money into the hands of businesses
Cut taxes on the wealthiest Americans
Lower taxes = more investment in the “supply side” of the economy
Would:
promote and create new jobs
encourage capital investment, and
lead to stimulated industrial growth

21. Supply Side Economics “Trickle Down” affect
The idea is that:
large tax cuts on investments would give more money to the wealthy
in turn the wealthy would invest their money in new businesses in order to make more money
the new businesses would create new products and services creating more jobs for workers
more workers would be making more money creating more taxpayers
more taxpayers would increase federal revenues

22. Cutting Government Regulation - “deregulation”
Continued Carter’s programs to deregulate key industries
Energy, Transportation and Banking Industries
Challenged Air Traffic Controllers in Fired those who refused to go back to work after a strike.

23. The Results of Reaganomics
1982 -initially high interest rates caused a severe recession
1986 – inflation dropped to 4% (1980 = 14%)
GNP increased by 10%
Unemployment declined
Stock Market soared

24. 1987 – market crashed due to automated and computerized selling controls
1988 – economy recovered and continued to be a “Bull Market”

25. Cost of Reaganomics National Debt soared to $4 trillion (1992)
(1980 = $900 billion)

26. Reagan did not cut “entitlement programs”
Social Security
Veteran’s pensions
Medicare

27. Programs cut: ($40 billion)
urban mass transit
food stamps
welfare benefits
job training
Medicaid
school lunches
student loans

28. Reagan: Economic Recession, and Recovery
Inflation slowed, consumer spending increased
Stock market grew
Federal deficit grew even as domestic spending decreased
National debt = $909 billion in $3.2 trillion in 1990

29. Social Concerns continued…
Education
A Nation at Risk Americans lagged behind other industrialized nations (23 million could not fill out a job application)
Challenger Explosion January 28th
URBAN Crisis- Rodney King Riots

30. Social Concerns of the 1980’s
Health Issues
AIDS- acquired immune deficiency syndrome
Drug Abuse- possibly legalized to reduce gang activity
Reagan started his war on drugs campaign “Just Say No”

32. Equality
Equality
National Rainbow Coalition- political organization which advocated social progress and equal rights for women, gays, and people of color led to the Gay Rights Movement
Women, African Americans, Latinos, Native Americans, Asian-Americans
New Jersey v T.L.O- students belongings may be searched with reasonable cause “school rules”
Immigration Reform and Control Act- increased border patrol
Abortion- Roe v Wade 1973 legalized

34. Slowed Federal Growth - New Federalism (Reagan-style)
Limiting government
Eliminated public service jobs,
reduced unemployment compensation,
lowered welfare benefits,
raised fees for Medicare patients
Federal domestic spending still grew for a couple of years

35. Reagan and Military Buildup
Sharp increase in military spending = buildup
New weapons and new technology
Neoconservatives (Neo-cons = Dick Cheney, Don Rumsfeld, Paul Wolfowitz, Condoleeza Rice, Richard Armistead, Colin Powell, etc.)
Strategic Defense Initiative (SDI) = better known as Star Wars

36. Military Spending
Between 1981 and 1984 the defense budget almost doubled
“Star Wars” program (aka) Strategic Defense Initiative- created a missile shield to protect the US from a nuclear attack by “knocking down incoming missiles

37. Battling Communism in Central America and the Caribbean
Reagan Doctrine- provide aid to support anticommunist insurgents and movements
Sandinistas and Contras fighting in Nicaragua- US backed Contras fighting against communist Sandinistas (illegal covert actions had taken place and would get Reagan involved in a scandal)
Grenada- US invaded and took over (looked down upon by many other nations)

38. Iran Contra Scandal
In 1983 Iranian terrorist took many American’s hostage until president Reagan had approved the sale of arms to Iran. Reagan’s staff sent part of the profits from the illegal arms to the Contra’s in Nicaragua which was a violation of the Boland Amendment, many of Reagan’s staff members were found guilty and fined for their actions.

39. Election of 1984

40. Patriotic Renewal “It’s Morning in America, Again” 59% of popular vote
Second largest electoral victory in history
1984 Olympics in Los Angeles
Communist-bloc countries boycotted
th anniversary of Statue of Liberty
th anniversary of the Constitution

41. Other issues 1984-1988 AIDS Awareness
Women’s Movement stalled (ERA failed in 1982)
Supreme Court conservatives
Sandra Day O’Connor
Anthony Kennedy
Antonin Scalia
Chief Justice William Rehnquist

42. More issues: 1984-1988 Farm Crisis - foreclosures
Manufacturing shift - from metal and textiles (overseas = outsourcing due to labor costs)
Service sectors continued to grow
Wealthiest Americans flourished in the 1980s
Jan 28, Space Shuttle Challenger exploded shortly after take off

43. Scandal
S & L Crisis
Savings and Loan institutions deregulated and some corrupt individuals used this to make huge personal fortunes
S & L’s collapsed in late 1980s
$2.6 billion in savings lost
Iran Contra Scandal
Selling arms (to Iran) for the release of hostages to support Nicaraguan Contras
Covered up
Reagan admitted covering up
No long term impact
“Teflon” president.
The savings and loan crisis of the 1980s and 1990s (commonly dubbed the S&L crisis) was the failure of 1,043 out of the 3,234 savings and loan associations in the United States from 1986 to 1995: the Federal Savings and Loan Insurance Corporation (FSLIC) closed or otherwise resolved 296 institutions from 1986 to 1989 and the Resolution Trust Corporation (RTC) closed or otherwise resolved 747 institutions from 1989 to 1995.[1]
A savings and loan or "thrift" is a financial institution that accepts savings deposits and makes mortgage, car and other personal loans to individual members (a cooperative venture known in the United Kingdom as a building society). By 1995, the RTC had closed 747 failed institutions nationwide, worth a total possible book value of between $402 and $407 billion. In 1996, the General Accounting Office estimated the total cost to be $160 billion, including $132.1 billion taken from taxpayers.[2][3] The FSLIC and RTC were created to resolve the S&L crisis.
In 1979, the Federal Reserve System of the United States doubled interest rates that it charges its member banks in an effort to reduce inflation. The building or savings and loans associations (S&Ls) had issued long-term loans at fixed interest rates that were lower than the interest rate at which they could borrow. In addition, the S&Ls had the liability of the deposits which paid higher interest rates than the rate at which they could borrow. When interest rates at which they could borrow increased, the S&Ls could not attract adequate capital, from deposits to savings accounts of members for instance, they became insolvent. Rather than admit to insolvency, lax regulatory oversight allowed some S&Ls to invest in highly speculative investment strategies. This had the effect of extending the period where S&Ls were likely technically insolvent. These adverse actions also substantially increased the economic losses for the S&Ls than would otherwise have been realized had their insolvency been discovered earlier.[4] One extreme example was that of financier Charles Keating, who paid $51 million financed through Michael Milken's "junk bond" operation, for his Lincoln Savings and Loan Association which at the time had a negative net worth exceeding $100 million.[5]
Others, such as author/financial historian Kenneth J. Robinson or the account of the crisis published in 2000 by the Federal Deposit Insurance Corporation (FDIC), give multiple reasons as to why the Savings and Loan Crisis came to pass.[6] In no particular order of significance, they identify the rising monetary inflation beginning in the late 1960s spurred by simultaneous domestic spending programs of President Lyndon B. Johnson's "Great Society" programs coupled with the military expenses of the continuing Vietnam War that continued into the late 1970s. The efforts to end rampant inflation of the late 1970s and early 1980s by raising interest rates brought on recession in the early 1980s and the beginning of the S&L crisis. Deregulation of the S&L industry, combined with regulatory forbearance, and fraud worsened the crisis.[7]

44. Reagan and the Cold War Called Soviet Union the “evil empire”
Reagan - Cold Warrior
Lebanon
Libya
Grenada
El Salvador
Nicaragua (Contra rebels supported by US)

45. Foreign Policy and the Cold War
Mikhail Gorbachev Soviet Union leader
Glasnost- (openness) allowed for Soviet Government to have freedom of the Press
Perestroika- Government having less control
INF (Intermediate-Range Nuclear Forces) treaty-eliminated two classes of weapons systems in Europe

46. Gorbachev
1991- Gorbachev resigned as president and the Soviet Union dissolved (tearing down of the Berlin Wall)
CIS (Commonwealth of Independent States) created
1992- George Bush and Boris Yeltsin (Russian President) issued a formal statement the Cold War was over and signed STARTT Pact- which cut both nations arsenals by 2/3’s

47. Communism in China
Tiananmen Square demonstrations in Beijing by students demanding freedom of speech
China’s Premier, Le Peng, ordered the military to stop the protestors while the rest of the world was left to watch these events unfold