1. The 1980s: THE REAGAN & BUSH ADMINISTRATIONS

2. Americans Respond Won easily against Carter in 1980 election –Carter’s failure to resolve the hostage crisis contributed to Reagan’s win “The Great Communicator” = simplified issues & had clear-cut answers“The Great Communicator” Restored PRIDE & HOPE to Americans –After 15 yrs. of growing negativity and cynicism

3. REAGAN’S AMERICA Committed to mil. & econ. strength; restored PRIDE & PATRIOTISM to America –Removed neg. self-image from 1970s –Inherited weak econ. & Iranian Hostage Crisis New Path = Less gov., lower taxes & trad. values Strongly reelected in ‘84

4. “REAGANOMICS” New econ. policies on size of fed gov., tax & budget cuts & defense spending Part 1: Smaller gov. → budget cuts to gov. social programs (ex. welfare benefits, mass transit, school lunches) “We can lecture our children about extravagance until we run out of voice and breath. Or we can cure their extravagance by simply reducing their allowance.”

5. cont. Part 2: Tax cuts & less fed. control –Cut back fed. regulation in certain industries = deregulation Increased competition which meant lower prices for consumers –Allowed oil drilling in Alaska & off-shore = cut dependency on foreign oil –Unemployment  Econ. Recovery due to tax cuts,  interest rates, &  inflation

6. Supply-side Economics If biz. paid fewer taxes, they would save more $$ Biz invest in resources & jobs Biz supply of goods would ↑ making prices ↓ Consumers buy more making a stronger econ.

7. cont. Part 3: ↑ military spending to combat Cold War –Strategic Defense Initiative (SDI) = military systems to keep U.S. safe from enemy missiles (aka Star Wars) –Cost trillions

8. WINS REELECTION - 1984 Easy reelection win –Strong economy; supported small biz. & farmers –Limited the size & power of fed. gov. Geraldine Ferraro (D) – 1 st female on a presidential election ticket –Lost to Reagan/Bush ticket

9. REAGANOMIC PROBLEMS Too many tax cuts hurt gov. (not bringing in a lot of $$); welfare cuts hurt poor Deficit spending! –Nat. debt nearly doubled by ‘84

10. Foreign Policy: From Communism to Terrorism 1981: Nicaragua – supported Contras (against communism) in civil war there 1983: Greneda – 1 st large scale invasion since Vietnam; overthrew pro- Commie gov. Libya -

11. Cold War Cracks & Crumbles 1985: S.U. almost bankrupt & union near collapse 1985: New leader = Mikhail Gorbachev INF Treaty w/Gorbachev –Eliminated arms Gorbachev developed pos. relationship w/U.S. & G.B. –More openness towards the West

12. Cold War Ends 1988-1989: Satellite states start fighting for independence from S.U. Nov. 1989: Berliners bring “The Wall” down

13. Domestic Issues AIDS – epidemic brings focus on prevention & cure Education gap = within and outside of U.S. Urban Crisis conts. Drug Abuse – influx of drugs from cartels; Reagan launched “war on drugs”; First Lady Nancy Reagan targeted school children w/her “Just Say No” campaign

14. 1988 Presidential Election George H.W. Bush (R) (Reagan’s V.P.) won (#41) –Ran on Reagan’s legacy; voters saw no reason to change –Promised to “not raise taxes” but recession economy & deficits forced him to by 1990

15. Foreign Policy Cont. to reassert Superpower status started under Reagan 1989: Panama – overthrow & arrest Manuel Noriega (military dictator & drug trafficker) 1990: Persian Gulf War Terrorist actions new focus

16. SUMMARIZE & HIGHLIGHT Recap what you have learned about the domestic & foreign policies/actions of the Reagan & Bush administrations in the 1980s.