1. Carter, Reagan

2. Carter Presidency Carter: little known former governor of Georgia Democrat Carter fought with Republican congress: little domestic progress Camp David agreement: Israel and Egypt at peace, US aid to both Oil crisis: –Saudi oil Embargo due to US support for Israel –Gas prices rose dramatically –1978-80: high inflation, high unemployment Iran hostage crisis: 1979 fall of Shah, Iranians stormed US embassy; hostages kept 444 days Increased attention on environment and alternative energies

3. Reagan: Supply Side Economics Ronald Reagan: former film actor, CA governor, president 81-89: “Great Communicator” Culturally conservative Republican, elected on promise of tax cuts, anti- soviet rhetoric, popularity “Reaganomics:” Steep tax cuts, cut gov spending; cut taxes on wealthy, so wealth would “trickle down” through society Economic results: increased consumer spending, rising GDP, but huge increase in national debt and gap between rich & poor Raised taxes when deficit grew

4. Reagan: Nuclear Buildup Reagan dramatically increased production of nuclear weapons –Supporters claim this nuclear arms race bankrupted USSR –Critics claim the fall of USSR was due to internal structural problems Anti-USSR rhetoric and arms build-up led to protests across US

5. Reagan: End of Cold War 1985: Reagan visited USSR; friendship with Gorbachev Negotiated arms reduction and removal of weapons from Europe “Mr. Gorbachev, tear down this wall.” 1989-91: (Under Bush Sr.) Cold War ended with fall of Berlin Wall and collapse of Poland, East Germany, Hungary, Czechoslovakia, Romania and USSR

6. Reagan: Iran-Contra Affair Nicaraguan revolution: “Sandinistas” overthrew US- supported Samoza dictatorship US-supported “Contras” fought Sandinistas Congress outlawed further US support for contras Reagan continued secret support for Contras, funded through arm sales to Iran and probably cocaine sales Reagan denied involvement on TV to nation In last year of presidency, Reagan suffered Alzheimer’s, and Iran- Contra affair became public, with limited prison sentences and limited public disclosures