America in the 1980s and 1990s (1980-1999) Lesson 2 The Reagan Era

America in the 1980s and 1990s (1980-1999) Lesson 2 The Reagan Era Learning Objectives Analyze Reagan's economic policies as President. Examine Reagan's leadership and how he strengthened the conservative movement. Evaluate the steps taken to address various issues in the 1980s and early 1990s. supply-side economics deregulation budget deficit national debt Savings and Loan crisis Sandra Day O’Connor vouchers Acquired Immunodeficiency Syndrome (AIDS)

A New Direction for the American Economy Tax Cuts and Deregulation “Reaganomics” – reduce taxes for the upper class. 1. Reduce government spending 2. reduce federal income tax 3. reduce government regulation 4. control money supply, reduce inflation Economic Recovery Act 1981 Deregulation – removal of federal control over economy Riches Americans received largest tax cuts Reduce spending on social programs Cut taxes + reduce federal spending Supply-Side Economics “trickle down” More money to the rich Create more jobs, more money to spend, = increased economy. Regan Revolution

Problems with Deficit Federal Budget Deficit – government spending more money than it takes in. ($79 B in 1981 - $221B in 1986) Reagan spent money on the military/ while reducing taxes Gramm Rudman-Hollings Act – federal government reduce spending once the deficit reaches a certain limit Savings and Loan Crisis – many banks failed Fraudulent behavior + too many risky loans People blame Reagan for deregulation Federal Government bails our banks Social Security Reform Act – 1983 (SS = national retirement system ) Raised min retirement age Increased payroll taxes for social security

A New Direction for the American Economy Trade with Japan Japan came to dominate the American Economy Cars, TV’s, Technology Decline in American made cars, electronics Reagan imposed a tariff on Japan imports Increased prices of products. (tariff eventually removed) Organized Labor More conservative / anti-labor movement Air Traffic Controllers go on strike Reagan fired the federal workers instead of negotiating

A New Direction for the American Economy Ronald Reagan had to find a way to deal with inflation and stimulate the economy. Analyze Data How effective were Reaganomics in tackling inflation?

Analyze Information According to the theory of supply-side economics, how can tax cuts stimulate the economy?

Conservative Momentum Continues Reagan increased popularity – strengthen conservatism America reelects Reagan -1984 election Conservative Court Sandra Day O’Connor + Antonin Scalia + Anthony Kennedy First Female Justice Upheld Roe v. Wade Equal Access Act Allow any group to form in secondary schools (religious) Board of Ed of Westside Community v. Mergens George H.W. Bush + Election of 1988 VP for Reagan for 8 yrs Continue conservative movement in Government ADA – American with Disabilities Act - 1990 People with disabilities receive same opportunities Employment, education, access to public facilities

Culture, Challenge, and Change 1980’s Divided Nation - Cultural/economic/race/ethnicity/gender “Yuppies” + Material Generation Americans born baby boom post WWII Possessions became an obsession “Fit” – healthy lifestyles + looking good People focused on improving themselves not improving society NASA + Space Challenger – shuttle exploded after take off. 1986 Christa McAuliffe – school teacher (first private citizen to go to space) History.com Challenger

Cold War and 1980’s Challenges at home 1984 Olympic Games – L.A. USSR and other communist countries boycott Challenges at home Education + Drugs + Health “Nation at risk” – students scored lower on standardized tests Vouchers – government checks people used to send their kids to private schools Problem: take funding away from public schools Drug epidemic – increased drug smuggling into the USA Mexico + Cuba Health – AIDS No known cure