The Reagan Revolution

Jimmy Carter and Iran

• Iranian Revolution– 1979 – US Support Shah overthrown• 1953 CIA Sponsor overthrow of Mohammed

Mossadegh Government

– Ayatollah Ruhallah Khomeini • Fundamentalist Muslim • Orthodox Islami Values over western influences• Created new Islamic Nation

Continue • Iranian Hostage Situation – US Embassy in Tehran seized by fundamentalist mob

on November 4, 1979• Khhomeini Endorsed, demanded return of Shah and all his

wealth – 52 Hostages Taken

– Failed Rescue• Helicopter crashed

– Hostage Release • January 20, 1981

– 444 days of captivity – Released in exchange for release of Iranian funds

– Made Carter look week in foreign policy • Ronald Reagan elected president during crisis

Election of 1980• Ronald Reagan – Actor turned Political Speaker• Campaigned for GM and Republican candidates

– Liberal turned conservative• Gained fame in his support for Berry Goldwater in 1964

– California Governor• Elected in 1966• Served 8 Year• Promised return to traditional values and morals • Countered the Counter-Culture of the 1960’s and

1970’s

Continue • Revival of Evangelical Religion – Became nationalized in 60’s and 70’s

• Radio and television • Colleges and Universities

– Jerry Falwell’s Moral Majority• By 1980 had 4 million members • Became strong financial supports of Ronald Reagan

– Carter was a Born Again Christ and active in church – Reagan not an active church member and once divorced

» Demonstrates the impact of social/economic issues on the election

• Expressed the political Goals of the Religious Right – Free Enterprise = no regulation of economy – Reduce the size of government – Repeal of Row vs. Wade– Ban on teaching Darwinian Evolution – Reintroduce Prayer in School – Strong opposition to Soviet Communism

Continue • Election Day – Reagan won in a landslide

• 9,000,000 more then Carter • 489 electoral votes to 49

– Won all but four states

– Low voter turn out • Only 53% of voters went to the polls

– Most traditional Liberal/Democratic voters stayed home

• Reagan Appealed to the Moral Majority – Social/Economic issues dominated election – Disenchanted Liberal/democratic voters felt neither

party reflected their values

Reaganomics • Ronald Reagan’s economic policies – Objective was to reduce the size of government and

promote business• “Government is not the solution to our problems”• “Government is the problem”

– Supply-side Economics• Belief that economy would benefit best from reduction of

regulation and increase of the free market – Trickle Down Theory

• More money in the hands of the affluent/wealthy would create better economy– Wealthy would invest/spend money

– Tax cuts to reduce the size of government and put more wealth in the hands of Americans • Economic Recovery Tax Act • Reduced personal income tax on the wealthy and cut capital gains

tax

Continue – Spending Increase

• Increase in defense spending – Created unbalanced budget – Tax cuts and defense spending drove up the national debt – Reagan deficits more then all previous presidents combined

– Budget Cuts • $35 Billion cut from public assistance to help the poor

– Education, cultural programs, housing, food stamps, and school lunches» Social safety nets » Increase of poverty and decrease in support for the poor and

children

– Debt Crisis • 1980’s saw a dramatic increase in debt

– Personal, Corporate government» Caused unstable economy in the late 1980’s