Conservatives 1 Democrats-often labeled liberals, those who support government intervention in society. Republicans-labeled conservative, those who support limited government into lives of people. Liberals: support social programs for disadvantaged, protect minority rights, regulate business & industry, rely on diplomacy to solve problems, higher taxes.

Conservatives 2 Conservatives: Limit wasteful government spending, reduce taxes, deregulate business & industry, rely on strong national defense. Conservatives viewed liberal programs such as welfare and busing as a threat to the American dream. They felt taxes were too high. The Democratic Party suffered in the 1960’s and 1970’s due to urban riots, Vietnam War, the oil crisis, and the Iran Hostage crisis.

Conservatives 3 New Right developed, a new conservative movement made up mainly of Republicans. New Right believed government was taxing too much and created unfunded mandates-programs required but not paid for by government. They also criticized LBJ’s Great Society as hurting family values and raising government spending. Religious groups backed the New Right.

Conservatives 4 Moral Majority-political group formed by Rev. Jerry Falwell that worked for religious goals. The Republican Party grew as many white southerners, angered by Civil Rights of the 60’s, joined the Republican Party. In 1980, Republican Ronald Reagan ran for President asking Americans “Are you better off today than you were four years ago?” NO. Reagan defeated President Carter in debates and in the election. He won by a huge landslide as Carter only carried 4 states.

Conservatives 5 The U.S. Senate also went Republican by a majority in the election. Reagan’s election was known as the Reagan Revolution. He supported supply-side economics: lower taxes result in greater spending which stimulates the economy. Economic Recovery Act of 1981: cut taxes by 25%, largely for the wealthiest. Cut $40 billion from the federal budget, largely from social programs of liberals.

Conservatives 6 He deregulated industry and banking. He viewed government as not as the source to fix America’s problem, but government was the source of America’s problems. His economic program was called Reaganomics. The bad recession of the 1970’s continued into 1982. 10% unemployment, especially in blue-collar jobs. More became poor and it seemed the rich became richer.

Conservatives 7 Reagan believed that the wealthy would take their money and invest, building businesses and creating jobs. That money would trickle down to the lower income people. It worked, as the recession ended in 1983. Yet despite some budget cuts, budget spending increased for the military. Budget deficit grew from $79 billion in 1982 to $221 billion in 1986. National debt $2.5 trillion. Gramm-Rudman-Hollings Act-sought to reduce the deficit.

Conservatives 8 In 1989, the Savings and Loan crisis hit in which about 1000 S&L’s failed due to fraudulent and risky loans. The government spent $200 billion to assist. Many blamed Reagan’s deregulation which allowed them to make risky investments. Yet with the growing economy and new jobs, Reagan’s popularity soared. He appointed the first female to the Supreme Court, Sandra Day O’Connor.

Conservatives 9 He also promoted legislation that allowed religious groups to use public school facilities and allow students to pray. Reagan easily won the 1984 election. Reagan appointed other Supreme Court justices who often overturned previous liberal court rulings. His increased defense spending called for the Strategic Defense Initiative, SDI or Star Wars. SDI would provide for space missile systems to destroy incoming nuclear warheads.

Conservatives 10 Reagan sought to roll-back Soviet rule in Eastern Europe and that peace comes through strength. His increased military spending supported anti-communist groups around the world in Afghanistan, El Salvador, Grenada where he sent U.S. troops, and to the Contras in Nicaragua. He called Russia the Evil Empire. Mikhail Gorvachev became the President of Russia in 1985.

Conservatives 11 He promoted Glasnost-calling for Soviet openness and Perestroika-restructuring of the a weak Soviet economy. It was a move away from socialism and control in a new era of U.S.-Soviet relations. Russia could not afford to maintain all of its satellite nations. Reagan’s military buildup helped to collapse the Soviet economy. Reagan and Gorbachev met a agreed to reduce nuclear weapons.

Conservatives 12 In 1989, Eastern European countries began rebelling against Communist rule. Russia let them go and the Berlin Wall was removed, signaling the end of the Cold War and Communism in Europe. Iran Contra Affair-a political scandal under Reagan in which money from secret arms sales to Iran was used to support the Contras in Nicaragua. Since Iran was considered a terrorist country it was illegal to deal with them.

Conservatives 13 This was in direct violation of Reagan’s promise not to deal with terrorists. Reagan was never charged with wrongdoing as there was never any proof that he authorized such dealings with Iran. Some of Reagan’s staff were convicted of wrongdoing. Reagan’s Vice President was George Bush who won election in 1988, promising a kindler, gentler nation.

Conservatives 14 He promised not to raise taxes. He faced growing national debt, rising social security costs, and public education weaknesses. He called for volunteerism and supported vouchers for public school in which parents could use government funds to put kids in private schools. The Cold War completely ended under Bush as he continued to sign nuclear reduction treaties with Gorbachev and his replacement Boris Yeltsin with Russia ending Communism in 1991.

Conservatives 15 U.S. continued to have problems in the Middle East with Iran, Libya, and Iraq. With the fall of Russia, America was the world’s only superpower. Panama’s dictator Manuel Noriega was drug trafficking and threatening the U.S. Bush sent troops and captured him. In China, protesters for freedom rallying in Tiananmen Square and were crushed by Chinese troops and tanks.

Conservatives 16 In South Africa, Apartheid was the segregation system that had existed for years despite protests. Private businesses began divesting and the U.S. pushed for greater equality. In 1990, Nelson Mandela was finally released from prison after being arrested for the antiapartheid movement in 1962. He was elected President of South Africa in 1994 and received U.S. recognition.

Conservatives 17 Bush assumed the role of international peacekeeper and sent troops to Yugoslavia and Somalia to establish cease-fire in civil disruptions in Operation Restore Hope. Biggest challenge in foreign policy was in the Persian Gulf. Saddam Hussein of Iraq invaded neighboring Kuwait to take over their oil. This threatened the entire Middle East. Diplomacy and sanctions failed.

Conservatives 18 With UN support, America led Operation Desert Storm-attack on Iraq January 16, 1991. Military operation lasted 5 weeks with devastating aerial bombing of Iraqi forces. Coalition ground troops stormed into Kuwait on February 23, 1991. Within 5 days, Iraq agreed to a UN cease-fire and withdrew from Kuwait. Saddam Hussein was permitted to take his forces and go back to Iraq, though he lost 25,000 soldiers.

Conservatives 19 The war was short with few U.S. causalites. Many criticized Bush for not capturing Saddam Hussein. War would again happen 20 years later under his son George W. Bush. Bush had recognized an education weakness in America with the book A Nation At Risk. He also raised taxes despite his promise not to do so. With the broken promise and a short recession, Bush lost his re-election to Bill Clinton in 1992.