ESSENTIAL QUESTIONS: How well did American leaders deal with the challenge of stagflation? Does America have a moral responsibility to be world’s policeman? Carter and Reagan

TEKS and Objectives We will… I will… (10B) describe Reagan’s leadership through Reaganomics and Peace through Strength (10D) describe U.S. involvement in the Camp David Accords, the Iran-Contra Affair, Marines in Lebanon, and the Iran Hostage Crisis (10E) describe the Heritage Foundation, the Moral Majority, and the National Rifle Association (11A) describe U.S. involvement in world affairs (13A) analyze causes and effects of migration from Rust Belt to Sun Belt (17C) describe the impact of defense spending on the economy (24B) evaluate the contributions of Sandra Day O’Connor Summarize the political achievements of Carter and Reagan Presidencies

(1977-1981) The Carter Presidency

Election of 1976 Gerald Ford (R) Jimmy Carter (D) Replaced Nixon Plagued by Watergate scandal Jimmy Carter (D) Former Governor of Georgia Promised to end corruption and “clean up” Washington Defeated Ford

Domestic Policy The Energy Crisis Stagflation Created Department of Energy Congress denied him the power to tax large automobiles and ration gas Stagflation Cut federal spending in 1979 Inflation did not come down until 1981 under Reagan

Domestic Policy The Environment Diversity Cleaned up toxic dumpsites Created the Nuclear Regulatory Commission Diversity Appointed women/minorities to government posts Sponsored bill to instruct students in native language

Foreign Policy – Camp David Accords Israel Established as homeland for Jews after the Holocaust Many Palestinian Arabs living in the area Israel received economic/military aid from U.S. Egypt and Israel warring since 1948

Foreign Policy – Camp David Accords Anwar Sadat President of Egypt Menachem Begin Prime Minister of Israel Camp David Presidential retreat Face-to-face negotiations between Carter, Sadat, and Begin

Foreign Policy – Camp David Accords Israel returned Sinai Peninsula to Egypt Egypt established diplomatic relations with Israel Ended 20 years of warfare between Egypt and Israel

Foreign Policy – Panama Canal The Panama Canal Treaty (1977) Returned control of the canal to Panama by the end of the century

Foreign Policy – Soviet Union Afghanistan Invaded by USSR Increased tensions between U.S. and Soviets Carter halted grain sales to Soviets, boycotted 1980 Olympics in Moscow, and postponed ratification of SALT II

Foreign Policy - Iran Iranian Revolution Ayatollah Khomeini Revolution broke out against his brutal dictatorship U.S. supported Shah (ruler) Shah fled the country Ayatollah Khomeini Took control of Iran Hostile to Western influence Resented U.S. for helping Shah and supporting Israel

Foreign Policy - Iran U.S. Embassy Seized Shah entered U.S. for medical treatment Iranian students held embassy staff hostage for more than a year Carter unable to negotiate release Hostages released the day Reagan took office

(1981-1989) The Reagan Presidency

Election of 1980 Jimmy Carter (D) Ronald Reagan (R) Plagued by inflation and Iranian Hostage Crisis Ronald Reagan (R) Popular Hollywood actor George H. W. Bush, VP Landslide victory

In his Inaugural Address of 1981, Reagan explained his views on government: “In this present crisis, government is not the solution to our problem; government is the problem. From time to time we’ve been tempted to believe that society has become too complex to be managed by self-rule, that government by an elite group is superior to government for, by, and of the people. Well, if no one among us is capable of governing himself, then who among us has the capacity to govern someone else? All of us together, in and out of government, must bear the burden. The solutions we seek must be equitable, with no one group singled out to pay a higher price.” Based on his Inaugural Address, how did Regan view government? Why does Reagan’s view of government continue to appeal to many citizens today?

The New Conservatism National Rifle Association (NRA) Created to promote rifle shooting and marksmanship Opposed Gun Control Act of 1968 after assassinations of JFK, Robert Kennedy, and MLK Endorsed Reagan in 1980

The New Conservatism The Moral Majority Composed of Fundamentalist Christians Founded by Evangelist, Jerry Falwell Favored a strict interpretation of the Bible Opposed ERA Helped Reagan get elected

The New Conservatism Heritage Foundation Believe in free-enterprise, limited government, individual freedom, and strong national defense Greatly influenced Reagan’s policies

Reaganomics Tax Cuts and Domestic Spending Reagan cut taxes on businesses/wealthy Tax cuts would “trickle down” (supply-side economics) to other groups Reduced federal welfare programs to offset tax cuts

Reaganomics Deregulation Increased Military Spending Reagan eliminated many regulations on businesses Relaxed enforcement of anti- trust laws Increased Military Spending Borrowed money for military spending Stimulated the entire economy

Reaganomics Other Factors World oil prices stabilized Computer programming/healthcare industries created new jobs Reagan acted against unions (i.e. fired air traffic controllers on strike)

The Federal Deficit and the National Debt What a country spends beyond what it collects in taxes Increased greatly during Reagan’s term because of tax cuts National Debt More than doubled during Reagan’s term Because of military spending

Reagan and Trade Trade Imbalance Americans bought more goods/services from other countries than they sold overseas Led to the loss of millions of jobs, closing steel mills/auto plants

Immigration Policy Mazzoli-Simpson Act (1986) “legalized” illegal immigrants living in the U.S. since 1981

U.S. Supreme Court Sandra Day O’Connor First woman Justice of U.S. Supreme Court Appointed by Reagan

Migration Patterns Midwest “Sun Belt” Hot summers/cold winters Home to most Americans until 1970 “Sun Belt” Southeast and West Too hot/humid Too dry/remote

Migration Patterns Technological Developments Government-built dams made more water available in West Air conditioning/hydro- electric power kept homes/offices/factories cool in summer

Migration Patterns From “Rust Belt” to “Sun Belt” Factories abandoned in the Midwest to move to the “Sun Belt” Population increased sharply Regions became more urbanized

Foreign Policy The Reagan Doctrine Communists tried to take Caribbean island of Grenada Reagan sent U.S. Marines to protect Americans on island and stop Communism Reagan stated U.S. would aid anti-Communist “freedom fighters” in Afghanistan, Angola, Nicaragua, and Cambodia

Foreign Policy Peace through Strength “Let he who desires peace prepare for war.” Best way to prevent war is to make enemies think U.S. had means/willingness to stop aggression Increased military spending Proposed Star Wars (using lasers to stop missiles)

The Threat of Terrorism Lebanon Civil war between Christians and Palestinians in 1982 U.S. Marines/French paratroopers sent to restore order Suicide bomber killed 241 Americans/58 French

The Threat of Terrorism Reagan’s Reaction Pulled troops from Lebanon Vowed he would not negotiate w/terrorists Muammar Gaddafi Leader of Libya Supported terrorists attacks in Berlin Admitted responsibility for blowing up Pan Am flight in 1988 Reagan bombed 2 Libyan cities

The Iran-Contra Affair “Contras” in Nicaragua Anti-Communist rebels Congress prohibited U.S. aid to Contras Reagan Administration Sold arms to Iran in exchange for American hostages in Lebanon Money sent to Contras

Iran Contra-Affair Reagan Effects Failed to monitor actions of top officials Cleared of any wrong-doing Several officers sent to prison Effects Led many citizens to seriously question their trust in the government

The Triumph of Democracy Mikhail Gorbachev Became head of USSR in 1985 Introduced political and economic reforms Withdrew troops from Afghanistan Improved relations with U.S.

The Triumph of Democracy Reagan and the End of the Cold War Critics don’t think he deserves credit for ending Cold War Supporters believed he placed military/economic pressure on Soviets

In June 1987, Reagan gave a speech near the Berlin Wall In June 1987, Reagan gave a speech near the Berlin Wall. Many saw this address as the beginning of the end of the Cold War and the fall of Communism. “We hear much from Moscow about a new policy of reform and openness. Some political prisoners have been released. Certain foreign news broadcasts are no longer being jammed. Some economic enterprises have been permitted to operate with greater freedom. Are these the beginnings of profound changes in the Soviet state? Or are they token gestures, intended to raise false hopes in the West? We welcome change and openness; for we believe that freedom and security go together. There is one sign the Soviets can make that would be unmistakable, [and] advance the cause of freedom and peace. General Secretary Gorbachev, if you seek peace, if you seek prosperity for the Soviet Union and Eastern Europe: Come her to this gate! Mr. Gorbachev, tear down this wall!...”