Table of Contents Left Hand 59 The Story of Stuff Right Hand ■Reagan

RONALD REAGAN Did the policies of the Reagan administration strengthen or weaken the United States?

The New Right ■American discontent with the Watergate scandal, the economy, energy crisis and Iran hostage crisis. ■Reagan whose background as an actor brings a stage presence and infectious optimism ■The New Right was against gun control, abortion, homosexual rights, school busing, Equal Rights Amendment, affirmative action and nuclear disarmament ■Jerry Falwell’s Moral Majority pushed these values through media.

Reaganomics 1.Lower taxes (for the wealthy) 2.Smaller government (cut social spending and government regulation of industry and environment) 3.Strong military (return to American exceptionalism--“We are today, the last best hope of man on earth.” 4.Conservative moral values

Supply Side Economic Theory or Trickle Down Economics Trickle Down Economics ■Tax cuts to the wealthy and business incentives will stimulate investment ■Greater investment would lead to an increase supply of good and services (more jobs) ■More jobs would lead to an increase in taxes.

Military spending ■Some cuts in government spending, but spending actually increases because of military spending ■First Term: “Evil Empire” –Largest military spending from $150 to $250 billion –Strategic Defense Initiative— ”Star Wars” ■Second Term –Pressure on Reagan for a “nuclear freeze” –Gorbachev suggest banning all ballistic missiles, but Reagan could not let go of SDI

Debt ■Tax rate for the wealthiest Americans dropped from 70% to 28%Tax rate ■Less taxes and greater spending lead to skyrocketing budget deficit. ■ US suffers a severe recession ■Federal Reserve raises interest rates to reduce inflation and the GNP begins to turn around

The Story of Stuff

Negative Impacts ■incinerator emissions of toxins like dioxin ■pollution and carbon dioxide emissions from transportation ■increased ecological footprint ■migration to urban slums ■school dropouts ■toxics in air and water ■decreased natural resources ■toxics in our products ■accumulation of toxins in consumers ■low wages and reduced health care benefits for retail workers ■declining happiness of consumers ■trash exported to poorer countries ■credit card debt ■loss of wildlife habitat ■unsafe conditions for factory workers ■more time spent working, less leisure time

Drivers/causal Factors ■Externalize the costs –Exploit land resources –Exploit human resources ■Designed obsolescence ■Perceived obsolescence –Commercials –Ritualized buying ■The Golden Arrow