RAH Day 25 Enduring Understanding(s) Ronald Reagan’s presidency marked the victory of the “New Right” and led to conservative economic and social values Essential Questions Compare Reagan and Carter during the 1980 election. How were they similar and different? Describe “Reaganomics” and the main components of this policy. Explain the impact Reagan’s fiscal policies had different sectors of society. Describe the effects of government deregulation in terms of business and the environment How do Regan’s policies reflect the American Paradox?

1980 Election Complete Graphic Organizer (packet pg. 1) Work in your groups Pgs. 328-333 of your textbook As you finish, answer EQ1 at the bottom of the page.

Compare Reagan and Carter during the 1980 election Compare Reagan and Carter during the 1980 election. How were they similar and different? Similar Different Religious Washington “Outsiders” Governors (Georgia & California) Reagan wanted less gov’t Reagan wanted more military spending, Carter wanted less Reagan gained the support of conservative/evangelical Christians in election Reagan seemed more like a leader

Reading (PSSA preparation) Readings on pg. 5-10 of your packet First Reading: Regan’s Inauguration Second Reading: A Troubled Economy Then complete multiple choice questions on pg. 3-4 These readings will give a broader understanding of Reagan’s goals and his economic policies If you finish move on to G.O. on pg. 2 of packet and fill out the top three boxes (pg. 340-342

Multiple-Choice Answers Reading #240 1-B, 2-D, 3-A, 4-D Reading #254 1-C, 2-A, 3-C, 4-D, 5-D, 6-D, 7-A, 8-B EQ2: Describe “Reaganomics” and the main components of this policy.

Reaganomics Policy Results Tax Cuts Income tax cuts mostly for the rich and for businesses Reduce Gov’t Spending Cut social programs that benefited the poor, $41 billion Tight Monetary Policy Limited amount of money in the economy through federal reserve Results Reduced top level of income tax from 70% to 30% over course of his time in office, but tax rates for most Americans stayed mostly level Cut programs like food stamps/housing assistance/Medicaid but kept Social Security and Medicare Inflation

Supply-Side economics = Reaganomics Cut gov’t spending, especially entitlement programs Cut taxes, especially on businesses and the wealthy Simplify the depreciation schedule Cut business regulations including environmental enforcement Improve monetary policy Promote confidence in the US Cut and limit government activity related to business Keynesian policy Government $$$ - welfare, jobs, housing subsidies, food stamps Goods/services Goods/services Producer/supplier of goods and services Consumer of goods and services $ $ $ $ $ $

Supply-Side economics = Reaganomics Cut gov’t spending, especially entitlement programs Cut taxes, especially on businesses and the wealthy Simplify the depreciation schedule Cut business regulations including environmental enforcement Improve monetary policy Promote confidence in the US Cut and limit government activity related to business Supply side policy Government Business tax cuts, investment tax cuts, deregulation, lower interest rates Goods/services Goods/services Trickle $ $ $ Down Producer/supplier of goods and services Consumer of goods and services $ $ $ $ $ $

Reagan’s Domestic Policies Complete the rest of Domestic Policy G.O. (pg. 2 of packet) Work together with table groups Use pgs. 340-346 of packet

Comparing Quintiles Mean family income in current 2005 $ – US Census - CPS

Median family income in current 2005 $ – US Census Bureau Current Population Survey