Ronald Regan January 20, 1981 – January 20, 1989

Ronald Regan Hollywood Actor in 1937; made 53 films Although Reagan began his political life as a Democrat, by 1962 he found his home in the Republican Party. In 1966 he became the governor of California. Had trouble meeting his goals for cutting the size of government After two terms as governor, he wanted to run for the presidency Reagan was the hero of a growing movement called the New Right. His powerful personality, optimism, and acting skills drew many Americans—even Democrats—to his side. Reagan’s wife, Nancy Reagan, was one of his greatest allies.

Realignment New Deal Coalition Reagan Coalition Democratic South African-Americans Union members Urban North Immigrant/newer ethnic groups Farmers Reagan Coalition Midwest small towns Wealthiest Americans Hawks on foreign policy Blue Collar in North and Midwest (Regan Democrat) White Southerners Evangelicals Regan Democrat: Democratic voters, especially white working-class Northerners, who defected from their party to support Republican President Ronald Reagan in both the 1980 and 1984 elections.

Reagan’s Presidential Agenda Reduce the federal bureaucracy Deregulate certain industries (problematic) Cut taxes Increase the defense budget, Take a hard line with the Soviets Appoint conservative judges In his first few months as president, Reagan got much of what he wanted. Image grew stronger as he survived an assassination attempt on March 30, 1981 by John Hinckley Jr. How Regan used the Presidency Bully Pulpit Stage Events in Controlled Settings Feed the Media Consistency of Message Selling the President Popularity is Power Limiting government Eliminated public service jobs, reduced unemployment compensation, lowered welfare benefits, raised fees for Medicare patients Federal domestic spending still grew for a couple of years DEREGULATION: Continued Carter’s programs to deregulate key industries Energy, Transportation and Banking Industries Challenged Air Traffic Controllers in 1981 - Fired those who refused to go back to work after a strike. S & L Crisis Savings and Loan institutions deregulated and some corrupt individuals used this to make huge personal fortunes S & L’s collapsed in late 1980s $2.6 billion in savings lost Increase the Defense Budget Sharp increase in military spending = buildup New weapons and new technology Neoconservatives (Neo-cons = Dick Cheney, Don Rumsfeld, Paul Wolfowitz, Condoleeza Rice, Richard Armistead, Colin Powell, etc.) Strategic Defense Initiative (SDI) = better known as Star Wars Supreme Court conservatives Sandra Day O’Connor Anthony Kennedy Antonin Scalia Chief Justice William Rehnquist

Reagan’s Foreign Policy The Main Idea: President Reagan took a hard line against communism around the world. Called Soviet Union the “evil empire” Reagan - Cold Warrior Lebanon Libya Grenada El Salvador Nicaragua (Contra= Anti-Communist Insurgents) Between 1974 and 1980, while the United States wallowed in post-Vietnam angst, 10 countries had fallen into the Soviet orbit: South Vietnam, Cambodia, Laos, South Yemen, Angola, Mozambique, Ethiopia, Nicaragua, Grenada and Afghanistan.  Iran Contra Scandal Selling arms (to Iran) for the release of hostages to support Nicaraguan Contras Covered up Reagan admitted covering up No long term impact “Teflon” president. scandal that erupted after the Reagan administration sold weapons to Iran in hopes of freeing American hostages in Lebanon; money from the arms sales was used to aid the Contras (anti-Communist insurgents) in Nicaragua, even though Congress had prohibited this assistance. Talk of Reagan's impeachment ended when presidential aides took the blame for the illegal activity.

Reagan and the Cold War Reagan rejected the policies of containment and détente; he wanted to destroy communism. Position worsened relations with the Soviets Critics of his policy called Reagan reckless Reagan obtained massive increases in military spending. Much of the new spending went to nuclear weapons. Promoted the Strategic Defense initiative (SDI)—a shield in space to protect the United States against incoming Soviet missiles. Critics called this Star Wars and said it wouldn’t work

A Thaw in the Cold War The Soviet Union By the late 1970s the Soviet economy was shrinking. Industrial and farm production, population growth, education, and medical care all fell. The Soviet Union started importing food The communist Satellite Nations of the Soviet Union begin to demand political and economic reforms U.S.-Soviet Relations Mikhail Gorbachev: becomes Soviet leader in 1984; reform minded Economic (perestroika), Social (glasnost), Military (diplomacy), and Political (democratization). Reagan and Gorbachev sign Intermediate-Range Nuclear Forces (INF) Treaty in 1987 Fall of the Berlin Wall Nov. 1989 n “evil empire,” one that the United States not only had a foreign-policy duty to oppose but a moral duty to compete with as well.

Economic Philosophy OLD Keynesian Economics “Demand Side” Economics New Deal NEW Reaganomics (The Reagan Revolution) “Supply Side” Economics Trickledown Economics

Supply-Side Economics a.k.a “Reaganomics” Cut taxes to put more money into the hands of businesses Cut taxes on the wealthiest Americans Lower taxes = more investment in the “supply side” of the economy Would: promote and create new jobs encourage capital investment, and lead to stimulated industrial growth

Art Laffer = Laffer Curve