1. How do conservative domestic policies under Reagan change America?
The Reagan Revolution
How do conservative domestic policies under Reagan change America?

2. 1980 Election: Conservative Revolution
Jimmy Carter challenged in own party by Ted Kennedy
Conservative coalition of “Reagan Democrats” & “Moral Majority” help Reagan win easily election
Reagan wants to fix America with “new right” ideas:
1) Shrink size of federal government by cutting entitlements
2) Promote family values
3) Promote patriotism & strengthen national defense
Discuss: Why do you think Reagan won in 1980?

3. Supply Side Economics aka Reaganomics
Reagan’s budget director David Stockman believed “trickle down economics” would get “welfare state” under control
Supply Side Economics aka Reaganomics
1) Cut personal taxes (wealthiest Americans get largest tax cut)
2) Cut the capital gains and estate taxes
3) Cut taxes on corporations
4) Cut Fed budget for mass transit, food stamps, welfare, Medicaid, mental health & job training but increase defense sp.

4. Reagan’s ideas are criticized as the rich are getting richer and poor getting poorer, Nancy Reagan’s luxuries compound this
Plan backfires, recession hits hard from July 81- Nov 82, Reagan must raise some taxes
However, with low oil prices, higher interest rates, stronger dollar and less inflation economy begins to recover by 1983

5. Deregulation
Reagan begins to deregulate businesses by removing govt controls on banks, businesses and stock market
Results: 1) Prices fall w/ more competition 2) Corporate profits & stocks rise 3) More bank failures as banks take more risks
Reagan appoints more conservative justices(many pro-business)

6. Reagan Rolls Back 70s reforms
In his goal to reduce role of govt in people’s lives, Reagan rolled back many 1970s reforms
Environment: James Watt as head of Dept of Interior
Watt will begin to sell of protected land to oil and timber companies, Reagan also cuts EPA budget
Affirmative Action: Reagan actively fights to reduce program
Dept of Education: less fed guidelines, more local control

7. Air Traffic Control Strike
Critics accused Reagan’s policies of being pro-business and anti-union/worker – union membership declines in 80s
Air traffic controllers go on strike, claim wages have been flat, issue: public safety vs. right to strike, Reagan fires strikers
Discuss: Explain if Reagan did the right thing by firing the striking air traffic controller?

8. 1984 Re-election
1984: economy booming, Democrats challenging Reagan incl: Sen Gary Hart, ex-VP Walter Mondale, & Rev Jesse Jackson
Mondale wins nomination picks Geraldine Ferraro as VP nom.
Reagan wins a landslide re-election