Reagan “Return of the Right”

Jimmy Carter High Unemployment Energy Crisis of 1979 High Inflation Labor Force Participation Rate was 63.3% Human Rights Camp David Peace Accords Increased Hostilities towards USSR Iran Hostage Crisis Jimmy Carter

An actor, host of a popular TV show, and former Governor of California Reagan had a very appealing side. 1980 the U.S. was plagued by high inflation, high unemployment, a contracting economy, and soaring energy prices. Internationally the United States was battling with the Iranian Hostage Crisis and the Cold War. Ended the 1980 debate with the question “Are you better off than you were four years ago?” Reagan defeated Carter 489 – 49 Electoral College; Republicans also won the Senate and made significant gains in the House. Will win reelection in 1984 by capturing 525 Electoral College votes losing only Minnesota and D.C. (most in American History). Road to the White House

Reagan in the White House Great use of the media to get his message out. Reagan firmly believed that government taxed them too much and wasted their tax dollars. “Government is not the solution to our problem; Government is the problem.” Expanded the policy of New Federalism begun by Richard Nixon. Handed over many programs in health, education, and welfare to the states. To help the states pay for these social programs he used block grants. Block Grants – lump sum payments that states could use as they wished. Gave states more flexibility to allocate resources. Reagan in the White House

To meet the economic challenges he promised to stimulate the economy by cutting taxes and promoting private enterprise. Plan is known as Reaganomics. Supply-side economics – growth depends on increasing the supply of goods and services. Lower tax rates will leave more money in the hands of individuals and businesses providing an incentive for them to save and invest. Nearly, all Americans received at least a 30% tax rate cut. Unemployment will fall from 10.8% to 5.2% Reagan’s Tax Cuts

Large increase in defense spending (will eventually bankrupt the Soviet Union) Defense spending will increase nearly 85%, mostly used for military and defense. Will lead to modern day weapons that are saving American life's every day. Deregulation – reduction or removal of government “red tape” Promote economic efficiency and stimulate free enterprise. Reaganomics Cont…

Strategic Defense Initiative STRATEGIC DEFENSE INITIATIVE AKA “STAR WARS” was a defense strategy to shoot down missiles using our satellites. Strategic Defense Initiative

Reagan’s Social Policies Reduced spending on Social Welfare Social Welfare stifled personal initiative and produced a dependence on government aid. HIV / AIDS Emerge “Just Say No” Campaign Started DARE New Jersey vs. T.L.O. – school officials can search your belongings w/o a warrant if “there are reasonable grounds for suspecting that the search will turn up evidence that the student is violating the law. Angered Civil Rights Leaders Immigration Reform Reagan’s Social Policies

The 1980s saw pervasive racial discrimination by banks, real estate agents and landlords, unmonitored by the Reagan administration. Community groups uncovered blatant redlining by banks using federal Home Mortgage Disclosure Act information. But Reagan’s HUD and justice departments failed to prosecute or sanction banks that violated the Community Reinvestment Act. By the end of Reagan’s term in office federal assistance to local governments was cut 60 percent. Reagan eliminated general revenue sharing to cities, slashed funding for public service jobs and job training, cut the anti-poverty Community Development Block Grant program and reduced funds for public transit. These cutbacks had a disastrous effect on cities with high levels of poverty. many of which depended on federal aid. In 1980 federal dollars accounted for 22 percent of big city budgets. By the end of Reagan’s second term, federal aid was only 6 percent. The consequences were devastating to urban schools and libraries, Fire Departments, clinics, sanitation, Police Dept and Mental Wards – many of which had to shut their doors thus displacing mental patients on the streets.

INF (Intermediate-Range Nuclear Force) Treaty with Russia – Agreed to remove and destroy all missiles with a range of between 300 and 3400 miles. While Reagan was being inaugurate in 1981, the American hostages in Iran were flying home. Reagan began pressuring Soviet leader Gorbachev to reform and end the U.S.S.R. He gave a speech in Berlin where he stated, “Mr. Gorbachev, tear down this wall!” Foreign Involvement

Iran Contra Incident: Senior administration officials secretly facilitated the sale of arms to Iran, the subject of an arms embargo. Some U.S. officials also hoped that the arms sales would secure the release of several hostages and allow U.S. intelligence agencies to fund the Nicaraguan Contras. Under the Boland Amendment, further funding of the Contras by the government had been prohibited by Congress. Iran-Contra Scandal

Provided the foundation for success in the 1990s under George H Provided the foundation for success in the 1990s under George H. Bush and Bill Clinton America had increased her international standing again / was respected internationally again. New Businesses and Technology were growing because of R&D investments High Unemployment, Inflation, a contracting economy, and disparity were replaced with lower unemployment numbers, lower inflation rates, a booming economy, and a sense of pride to be an American Increased consumerism led to increase use of credit Increased government spending and debt. First time American debt reached over a trillion Legacy