Ronald Reagan And the 1980s

Ronald Reagan – President #40 1981-1989 Governor of California – Optimistic and charismatic ”Great Communicator” – Peace through strength Figurehead of growing ”New Right” coalition Endorse school prayer, lower taxes, strong military deregulation, small gov’t Opposed abortion, gay rights, funding for social programs – welfare, and big gov’t “Reagan Revolution”

Liberalism vs. Conservatism Gov’t intervention to help poor, unemployed, and elderly big gov’t regulates industry Foreign policy – cooperation and diplomacy Laws that protect rights of minorities and women Free market economy, private organizations, individual choice – liberal policies of the 60s = inflation Traditional Christian values Foreign policy – no détente, more action Social programs gave poor an easy way out, and were too expensive

Sunbelt Southeast and southwest – grew in population to surpass industrial regions of the northeast Cheap labor, great weather Hostile towards federal regulations and social programs Supported conservatism

Moral Majority Founded by Rev. Jerry Falwell Religious group Evangelical Christians and TV preachers – “televangelists” Condemned liberal view and called for restoration of traditional morals and values “Moral Majority” - Raised money to support conservative candidates

Supply-Side Economics & Reaganomics 1st year of Reagan’s presidency was the worst economically since 30s Supply-side economics – economy is weak because taxes were too high Reduce taxes = more spending = economy will grow In theory, would promote and create new jobs, encourage capital investment, lead to industrial growth Reaganomics - Cut taxes on the wealthiest Americans – wealth would “trickle down” to lower classes Results – Stock market surged, unemployment declined, budget deficit Reagan spent a lot of money – led to $3.2 trillion federal debt by 1990

Small Gov’t in Action Reduced unemployment compensation Reduced student loan programs, school lunch funding Lowered welfare benefits Raised fees for Medicare patients Deregulated savings and loans industry – increased competition and resulted in lower prices Cut budget of EPA

Iran-Contra Scandal – 1986-87 Congress banned all aid to Nicaraguan rebels (contras) and upholds arms ban against Iran – “Terrorist state” Reagan supported the rebels who fought by kidnapping, torturing, and executing hostages Terrorist group (Hezbollah) held American hostages in Lebanon – US sells weapons to Iran in exchange for their release. Lebanese press released info, which Reagan originally denied – but Iran confirmed deal The money made from deal was used to fund the Contras 14 gov’t officials indicted for crimes – most pardoned by HW Bush Worst scandal of Reagan’s presidency

Reagan and the Cold War Reagan increased military spending by 35% Strategic Defense Initiative (Star Wars) – provided shield to block incoming missiles – made Soviets panic New Soviet leader – Mikhail Gorbachev (1985) – Pledged new reforms to make communist gov’t more open Reagan – “Mr. Gorbachev, tear down this wall” – wall gates open Nov 9 1989, torn down soon after USSR officially falls in 1991 after his resignation = end of Cold War Funded anti-communist groups in Latin America and Asia – “Cold Warrior”

End of the Cold War By the late 80s Soviet economy was suffering. Gorbachev instituted perestroika – Restructuring – allowed some private enterprise and profit-making Also implemented glasnost – openness – allowed more freedom of religion and speech allowing people to openly discuss politics In 1989 revolutions replaced Communist rulers with democratic governments in Bulgaria, Czechoslovakia, Hungary, Poland and Romania 1991 – Communist officials and army officers arrested Gorbachev and sent troops into Moscow – coup is defeated – Gorbachev resigns, Soviet Union dissolves. Boris Yeltsin, supported by the US, is president of Russia from 1991-99

Other Conflicts Tiananmen Square - China’s communist leaders determined to stay in power. May 1989 students and workers held demonstrations for democracy in Tiananmen Square, Beijing. June – gov’t tanks and soldiers entered the square – many died, hundreds arrested US and other countries stopped arms sales and reduced diplomatic contacts with China Panama – dictator General Manuel Noriega President Bush ordered an invasion. Noriega was sent to the US to stand trial for drug charges. Troops helped Panamanians organize a new gov’t and hold elections

Persian Gulf War President Bush’s biggest crisis. August 1990, Iraq’s dictator, Saddam Hussein invaded oil-rich Kuwait. US feared Iraq’s ultimate goal was Saudi Arabia. United Nation’s imposed economic sanctions on Iraq and demanded their withdrawal from Kuwait Jan. 16, 1991 coalition forces launched Operation Desert Storm – attack killed thousands of Iraqi soldiers, hundreds of thousands surrendered. Kuwait liberated in just 100 hours.