APUSH Chapter 40: The Resurgence of Conservativism  When did the modern conservative movement begin?  What events contributed to the rise of conservative politics?

1980 Election “Its morning in America”

Where is Uncle Leo???

What caused this shift in American political thought?

1980s American Politics  “Supply Side” Economics - Trickle Down?  “Reaganomics”  Neoconservatives  Reagan Democrats  Cold War Thaw?  Star Wars – SDI: orbiting battle satellites & lasers  Iran Contra Scandal

The Regan Revolution A major goal of Ronald Reagan was to reduce the size of the government by shrinking the federal budget and cutting taxes A major goal of Ronald Reagan was to reduce the size of the government by shrinking the federal budget and cutting taxes He proposed a new federal budget that called for cuts of $35 billion, mostly in social programs He proposed a new federal budget that called for cuts of $35 billion, mostly in social programs Food stamps Food stamps Federally-funded job-training centers Federally-funded job-training centers On March 6, 1981, Reagan was shot. 12 days later, Reagan recovered and returned to work On March 6, 1981, Reagan was shot. 12 days later, Reagan recovered and returned to work

New Economic Consequences For the first time in the 20 th century, income gaps widened between the rich and the poor For the first time in the 20 th century, income gaps widened between the rich and the poor Some economists located the sources of the economic upturn in the massive military expenditures Some economists located the sources of the economic upturn in the massive military expenditures Reagan allocated nearly $2 trillion to the Pentagon in the 1980s Reagan allocated nearly $2 trillion to the Pentagon in the 1980s Gov’t deficit grew rapidly – most since the New Deal Gov’t deficit grew rapidly – most since the New Deal

1.American hostages in Lebanon 2.Communist Sandinistas in Nicaragua 3.American weapons sold to Iran – hostages released 4.$$$ from Iran funneled to Contras in Nicaragua 5.Reagan denies knowledge - Why no 2 nd Watergate?

Reagan's Economic Legacy Ronald Reagan had taken office vowing to stimulate the American economy by rolling back government regulations, lowering taxes, and balancing the budget Ronald Reagan had taken office vowing to stimulate the American economy by rolling back government regulations, lowering taxes, and balancing the budget Supply-side economic theory had promised that lower taxes would actually increase government revenue because they would stimulate the economy as a whole Supply-side economic theory had promised that lower taxes would actually increase government revenue because they would stimulate the economy as a whole The combination of tax reduction and huge increases in military spending caused $200 billion in annual deficits The combination of tax reduction and huge increases in military spending caused $200 billion in annual deficits

Reagan's Economic Legacy The large deficits of the Reagan years were financed by many foreign countries, esp. Japan The large deficits of the Reagan years were financed by many foreign countries, esp. Japan Greater dependence on foreign investment for domestic economic stability – legacy? Greater dependence on foreign investment for domestic economic stability – legacy? By appearing to make new social spending both practically and politically impossible for the foreseeable future, though, the economic deficits served their purpose By appearing to make new social spending both practically and politically impossible for the foreseeable future, though, the economic deficits served their purpose They achieved Reagan's highest political objective: the containment of the welfare state They achieved Reagan's highest political objective: the containment of the welfare state

The Religious Right In 1979, Reverend Jerry Falwell founded a political organization called the Moral Majority In 1979, Reverend Jerry Falwell founded a political organization called the Moral Majority He preached with great success against sexual permissiveness, abortion, feminism, and the spread of gay rights He preached with great success against sexual permissiveness, abortion, feminism, and the spread of gay rights Collecting millions of dollars and members, the organization became an aggressive political advocate of conservative causes Collecting millions of dollars and members, the organization became an aggressive political advocate of conservative causes Jerry Falwell