Download - THE REPUBLICAN RESURGENCE, 1980-1992
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THE REPUBLICAN RESURGENCE, 1980-1992
America: Past and PresentChapter 32
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Reagan in Power• Roosevelt coalition continues to splinter• Republican party picks up pieces
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The Reagan Victory• Carter’s negatives
• Iranian hostage crisis• economic ills
• Reagan’s positives win the election• warm telegenic personality• optimistic message• draws Jewish, working class vote
• Republicans win majority in the Senate
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Cutting Spending and Taxes
• Reagan’s premise: cut spending to encourage private investment
• Reagan cuts over three years• federal spending by more than $40 billion• social services included in cuts • taxes cut by 25%
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Limiting the Role of Government
• Environmental regulations relaxed• Attempted cuts in Social Security• Neglect of interest-group opponents
• labor hurt in air traffic control firings• lack of support for civil rights legislation• women ignored in judicial appointments
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Reaganomics• Reagan’s reductions in spending and
taxes prompt conflicting expectations• Supply-side economists expect
economic growth• Reagan’s critics expect massive
deficits, economic stagnation
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Recession and Recovery
• 1981-1982--unemployment hits 10%• 1983--economic recovery
• rise in consumer spending • prices remain level• worldwide decline in energy prices
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The Growing Deficit
• Basis for the Reagan prosperity includes• massive deficit spending • massive inflows of foreign investment
• 1983--federal budget deficit $200 billion• Spending caps on defense, services• 1985--U.S. becomes a debtor nation
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U.S. Budget Deficits, 1980-1997
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The Rich Grow Richer• Gains of Reaganomics
• inflation reduced to 4%• employment grows after 1982• growth in service sector jobs
• Losses of Reaganomics• high-paying manufacturing jobs decline• increasing social inequality
• wealthy benefit• poor left in poverty• middle class hurt
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Share of Aggregate Household Income by Quintiles, 1975-1995
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Reagan Affirmed• Perception of improving economy• 1984 election
• Reagan trounces Walter Mondale• Republicans lose seats in Congress
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Reagan and the World• Reagan determined to restore
America's international position• Steep increase in military spending• Aggressive foreign policy
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Challenging the "Evil Empire"
• Reagan: Soviet Union the "focus of evil in the modern world"
• Unfavorable deals on arms reductions• U.S. response to Russian refusal
• deployment of cruise missiles in Europe• development of anti-missile system
• Russians build up nuclear arsenal
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Turmoil in the Middle East
• 1982--Israeli invasion of Lebanon• International response
• U.S., France send troops to maintain order • PLO evacuates Beirut
• 1984--200 U.S. Marines killed in terrorist bombing
• U.S. evacuation of Lebanon
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Trouble Spots in the Middle East
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Confrontation in Central America
• Intervention against Latin American leftist insurgents
• Covert subversion of Sandinistas • October, 1983--invasion of Grenada
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Trouble Spots in Central America and the
Caribbean
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Trading Arms for Hostages
• Advanced weapons sold to Iran for influence in freeing American hostages
• November, 1986--Iran-Contra scandal• profit from Iran arms sales to Contras• funding violates Congressional prohibition• Reagan escapes impeachment
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Reagan the Peacemaker
• 1985--Mikhail Gorbachev assumes power in Russia
• 1985-88--Reagan-Gorbachev summits• 1987--destroy intermediate range missiles• 1988--Afghanistan evacuated
• Foreign policy triumphs restore Reagan’s popularity
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Social Dilemmas• AIDS epidemic • Drug abuse
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The AIDS Epidemic• 1981--AIDS first detected
• apparent confinement to homosexual men results in early public inaction
• spread to drug users, recipients of blood transfusions prompts panic
• Reagan Administration’s response• fund research• little funding for education, prevention• 1987--appointment of AIDS commissioner
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The AIDS Epidemic (2)• 1996--500,000 infected
• majority homosexuals, drug users• 15% heterosexual, non-drug abusers
• 1996--AIDS death rate begins dropping • new drugs• safer sexual practices
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The War on Drugs• Mid-1980's--crack cocaine introduced
• addiction spread through all classes• exploding crime rate
• Reagan attempts interdiction of supply• Bush, Clinton continue Reagan policy• At the end of the century there seemed
to be no end to the war on drugs
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Passing the Torch to Bush
• Republicans hope for major political realignment
• Factors reinforcing trend• 1980s economic boom• promise of the end of the Cold War
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The Changing Palace Guard
• 1985--Donald Regan chief of staff• Second-term victories
• tax reform package• appointment of conservatives
• Changes in the Supreme Court• Senate blocks Bork appointment to Court• Bush appointments help turn the Court
more to the right
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The Election of 1988• Republican George Bush• Democrat Michael Dukakis• Bush television ads attack Dukakis as
soft on crime, unpatriotic• Bush wins White House• Republicans lose seats in Congress
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Bush’s Domestic Agenda
• Problems of 1989• savings and loan industry facing collapse• ballooning federal deficit
• Bush’s deficit reduction• raise taxes• cut military expenditures
• Economic recession increases deficit
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The End of the Cold War
• June, 1989--Tiananmen Square• November, 1989--Berlin Wall torn down• 1991-1992--U.S.S.R. dissolved,
Communist Party outlawed in Russian Republic
• Cautious response by Bush
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The End of the Cold War
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Waging Peace• 1989--U.S. invasion of Panama • August, 1990--Iraq occupies Kuwait • January, 1991--Operation Desert Storm• Outcome of Desert Storm
• February 24--Iraqi force collapses• Bush’s approval hits 90%
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Republican Economic Woes
• 1990 budget deal violated Bush’s “no new taxes” pledge
• Also failed to reduce budget deficits• Economic recession prolonged