Unit 10 Day 3 Ronald Reagan

Reagan & the Economy ▫President Reagan’s plan to fix the economy was nicknamed Reaganomics. He kept interest rates high and asked Congress to cut taxes.  “Trickle-down Economics”: people believed Reagan was helping the wealthy and only a little would trickle down to the average person ▫Cut social programs back to keep the budget deficit under control and removed price controls on oil. Economy booms as a result

Other Domestic Impacts of Reagan Wanted to pack the Supreme Court with conservatives so he nominated Sandra Day O’Connor (1 st woman on the Supreme Court) Chose ultra-conservative William Rehnquist to be the Chief Justice Reagan builds up the U.S. military to it’s largest peace-time size in history Strategic Defense Initiative (nicknamed “Star Wars”)—called for development of weapons that could intercept and destroy incoming missiles

Reagan’s International Events The Reagan Doctrine: The U.S. should support guerrilla forces trying to overthrow Communist regimes ▫Sent aid to Afghan rebels, and to the “Contras” fighting the “Sandinistas” in Nicaragua Iran-Contra Scandal ▫Congress prohibited further aid to Nicaragua, but officials in Reagan administration continued to illegally support the contras ▫Secretly sold weapons to Iran in exchange for the release of American hostages. Sent the $$ to the contras. ▫Marine Colonel Oliver North and others testified guilty and admitted to covering up their actions

Collapse of the Soviet Union 1985: Mikhail Gorbachev became leader of the Soviet Union and wanted to make changes to help Soviet economy. ▫Reagan demanded Gorbachev prove his desire for change by tearing down the Berlin Wall ▫In 1988, George H.W. Bush replaces Reagan and takes office ▫Gorbachev orders the Berlin Wall to be torn down at midnight, November 9 th, 1989  Because of his efforts to westernize, Gorbachev was overthrown by Communist officials in a coup  Boris Yeltsin, the Russian President, defied the coup with the support of the U.S.  The coup collapsed, and Gorbachev was restored to power  As a result, all 15 Soviet republics declared independence and Yeltsin outlawed the Communist Party in Russia  December 1991: Gorbachev declared the end of the Soviet Union