The Conservative TideCh. 31

Consider this:

• As the 1980 presidential election approached, why was America a nation ready for change?

• What was the Reagan revolution, and who supported it?

• What were the key ideas of Reagan’s economic plan, and what were its effects?

The Reagan Revolution

• What is it?• The nickname for Ronald Reagan’s

presidency because it was seen to cause a political realignment in both domestic and foreign affairs

• It also favored his brand of conservatism and a free market economy.

Background Reagan

• Born in Tampico, IL 1911• Alma Mater – Eureka College• Actor• Began as a New Deal Democrat; became a

Republican in 1950s• “I didn’t leave the Democratic Party; the party left

me.”

• Became governor of CA in 1966• Ran for president in 1976 and 1980 (won in

1980)• Nickname: “The Great Communicator”

Reagan Quote!

• It will be my intention to curb the size and influence of the Federal Establishment and to demand recognition of the distinction between the powers granted to the federal government and those reserved to the states or to the people”

• What does it tell us of his policies?

Conservative Movement Emerges

• Included…• The New Right• The Conservative Coalition• The Moral Majority

Proponents of:

-Deregulation

-Lowering taxes

-Small government

-Strong military

-Religion in public places

Opponents of:

-Gun control

-ERA

-Homosexual rights

-Abortion

-School busing

-Nuclear disarmament

Election of 1980

• Jimmy Carter (D)• Stiff, nervous• Economy/Iran hurt

him

• Ronald Reagan (R)• Relaxed, charming• Used weak economy

and Iran hostage crisis to his advantage

• Support of New Right, CC, and MM

Reagan Quote! 2.0

• “A recession is when your neighbor loses his job. A depression is when you lose yours. And recovery is when Jimmy Carter loses his."

-1980 presidential election

So how did the election turn out for the

incumbent?

Reagan’s First Administration

4 major goals:• Shrink the federal government - lower

spending • Promote traditional morality and values

• Outlaw abortion, Affirmative Action• Stimulate business by reducing

government regulations and lowering taxes

• Strengthen the national defense• Hard Line towards USSR

Conservative Supreme Court

• Chief Justice William Rehnquist • Sandra Day O’Connor (First Woman to

be a justice)

Domestic Affairs

Reaganomics:• Budget Cuts• Reduce Taxes• Deregulate Economy

• This would also lead to a balanced budget

• Increase Defense Spending

Reaganomics – Cut Spending

• Proposed 35 million in budget cuts• Most of it will come by slashing federal

funding of Entitlement programs: food stamps, job-training centers, urban mass transit, welfare benefits, school lunches, student loans (much of LBJ’s great society)

Reaganomics – Reduce Taxes

• 25% tax cut across the board in 3 years• Eliminated federal estate tax • Lowered individual tax rates • Tax free saving plans for small investors • Advisors said cutting spending and cutting

taxes would:• stimulate new investment, boost productivity,

and foster dramatic economic growth

Reaganomics – Reduce Taxes

Supply-side economics:• People pay fewer taxes, save more money• Banks lend more money to businesses• Businesses more productive• Supply up, prices down, demand/spending

up

Reaganomics – Deregulate Economy

• This means to…• Reduce the size and power of the federal

government largely by cutting back on (or deregulating) federal government regulation on industry and business

• RESULT: increases competition and prices lower

Reaganomics – Increase Defense Spending

• 1981 to 1984 defense budget doubles

• Revival of MX missile and B-1 Bomber• SDI – Strategic Defense Initiative

• aka Star Wars• Proposed defense system to keep US safe

from enemy missiles (built in space)• Cut would cost US trillions of dollars

B-1 BOMBER

MX MISSILE

SDI

1981 – Assassination Attempt

The Story• WHO: John Hinckley

• WHAT: shot Ronald Reagan, who suffered a punctured lung

• WHEN: March 31, 1981

• WHERE: Washington Hilton Hotel (DC)

• WHY: Obsessed with actress Jodie Foster; saw the film Taxi Driver, identified strongly with Travis Bickle, the lead character; in film, Bickle attempts to protect a 12-year-old child prostitute (Foster) by attempting to assassinate a United States Senator who is running for president. Convinced becoming a national figure would make him equal to Foster, Hinckley began stalking then-President Jimmy Carter — his decision to target presidents was also likely inspired by Taxi Driver, but eventually went for Reagan.[5]

1983 – Economic Recovery

HOW?• Interests rates fell, stock market soared,

producing a long period of economic growth • Inflation rate dropped from 14% in 1980 to

4% in 1988 • Attributed to a consumer spending spree due

to a new confidence in the economy• However, for the first time in the 20th

century…• The pay gap widened, meaning the rich got richer

and the poor got poorer

Reagan and the Cold War

• First term• Reagan rejected the policies of containment and

détente; he wanted to destroy communism• Position worsened with the Soviets• Critics of his policy called Reagan reckless

• Reagan obtained massive increases in military spending.

• Much of the new spending went to nuclear weapons. • Promoted the Strategic Defense initiative (SDI)—a shield

in space to protect the United States against incoming Soviet missiles.

• Critics called this Star Wars and said it wouldn’t work.

Cold War Tensions Still High!

WHY?• Impossible to deal with

• 3 Prime Minister died in 3 Years • USSR shot down Korean Airliner

• Americans killed

• Continued War in Afghanistan• USA stopped SALT talks • USSR boycotted Summer Olympics in LA

Cold War Tensions Decrease…

• Mikhail Gorbachev – leader of the USSR in 1985, wanted to help Soviet economy, so created new, more democratic policies

• New Soviet Policies: From Communism to Capitalism (Sort of……)• Glasnost: openness in discussing social

problems – air out the secretive, stilted, repressive, Soviet society and introduce the concept of free speech – allow political liberties

• Perestroika: economic and bureaucratic restructuring – wake up soviet economy – free market –profit rather that state control

• Breakthrough with INF Treaty – eliminated 2 classes of weapons systems and allowed for each country to make on-sight inspections of the other country’s weapons

Reagan Quote! 3.0

• “Mr. Gorbachev, open this gate. Mr. Gorbachev, tear down this wall!”

- June 1987, Berlin

Fall of the Soviet Union

• Nov. 9, 1989 – Berlin Wall torn down in Germany• End of Communism in the state

• Dec. 1991 – 14 republics of the USSR declare themselves independent states

• Feb. 1992 – US and USSR officially declare the Cold War is over

Round 2!!!

• 1984 Election• Reagan/Bush v. Mondale/Ferraro

• Geraldine Ferraro is the first woman to be on a major ticket for the vice presidency

• And the results are…

Reagan’s Focus for His 2nd Term

• Foreign Affairs• Especially in Central America and the

Middle East

• The Reagan Doctrine• Believed that it was necessary for the

United States to combat the spread of Soviet-backed Marxist and leftist regimes throughout the globe.

Central America Policy

• Areas of Interest:• Grenada• Panama • Nicaragua

Grenada (1983)

• Direct military force • After coup had killed the prime minister

and brought communism to power

• Dispatched 2,000 troops to the island in 1983

• They found several hundred Cuban soldiers and a stockpile of soviet made arms

Panama (1989)

• 20,000 soldiers and marines into Panama to overthrow and arrest General Manuel Antonio Noriega on charges of drug trafficking • Convicted and sentenced to 40 years in

prison

Nicaragua (1981-1990)

• 1981 - Reagan charged that Nicaragua was a Soviet outpost that was exporting revolution to other central American countries • Sent “Military Advisors” to shore up pro-American

government in America • Reagan cut all aid to the Sandinista government • Threw his support Contras = Anti-Communist rebels

• 1983 – the Contra army had grown to nearly 10,000 men, and CIA officials had moved into direct operation in Nic. without Congressional approval

• In response – Congress banned military aid to the Contras for 2 years – BUT – Reagan’s administration still managed to get support to them

• To be continued…

Middle East Policy

• Areas of Interest:• Lebanon• Iran• Iraq

Iran-Contra Affair

• 1983 – Hezbollah – a terrorist group, loyal to Iran, took Americans hostage

• Reagan denounces Iran and urges US allies to not sell arms to Iran for its war vs. Iraq

Reagan Quote! 4.0

• “America will never make concessions to terrorists.”

-1985

HMM…

Iran-Contra Affair

• 1986 – US sold arms to Iran in exchange for the release of the 7 American hostages in Lebanon• Used the money to illegally fund the

Contra in Nicaragua (even though Congress told him he could not do that)

• Summer 1987 – Congress held special joint session to investigate• Some of Reagan’s administration

convicted; later pardoned by Bush

Reagan’s Legacy - Good

• Got the economy back on track• Ended Cold War• Conservatives felt he helped them• Businesses loved deregulation

Reagan’s Legacy - Bad

• Iran-Contra Affair• SDI• Income gap