Carter, Reagan

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

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

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

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

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