Reagan’s Policies (1980-1988)

Reaganomics 1. Deregulation: Cut back on the Federal Government = let businesses have more freedom. Good – prices fall = more money to spend, increased competition Bad – no regulation on the environment, Funding cut to programs that helped the poor, ex: food stamps, welfare, etc.

2. Supreme Court Chief Justice Burger retires Appoints: conservatives Rehnquist & Scalia first female Sandra Dey O'Conner moderate Kennedy during last year

B.) Election 1984 Regan / Bush vs. Walter Mondale/ Geraldine Ferraro (1st woman major party Presidential Ticket) Reagan won every state, but Minnesota.

Reaganomics 3. Increase Defense Spending: 1981-84 = doubled defense budget Fear of the USSR Strategic Defense Initiative (SDI) “STAR WARS” = keep us safe from other countries missiles.

4. Reagan Doctrine Support Guerilla groups, who werer fightin to overthrow communism Afghanistan – 370 million to help fight the soviets Nicaragua – money to Contra from arms sold to Iran to help the Sandanista Grenada – overthrow Marxists

George H.W Bush USSR Collapses: Glasnost (openness = freedom of speech) spreads, overthrow communist throughout Europe Berlin Wall torn down Communist stay coup, arrest Gorbachev Yelstin defies coup with troops, Coop collapse Communist outlawed, USSR collapse Bush Reaction: Supported by USA

Tiananmen Square Demonstration for Democracy in Beijing, Communist China capital Army sent against own people, hundreds killed or arrested Bush Reaction Stop arm sales and contact with china Bush resist harder measures believing that trade and diplomacy will change China’s behavior

Panama Canal US will give control back in 2000, want to make sure country stable Noriega stops cooperating, aiding drug runners and harassing US military Bush Reaction Sends troops in, arrested Noriega Troops then help establish new government

Persian Gulf Saddam Hussein invade Kuwait (oil) Fearing Iraq trying to control all the oil Bush Reaction: Economic sanctions US & UN troops force removal Operation Desert Storm 100 hrs after ground war Kuwait liberated

Economy Recession caused by less defense spending Unemployment increase as companies downsize Government had to take out high interest loans As government slowed banks that had been deregulated by Reagan failed Bush reaction: Tries to cut capital gains (tax on sales), defeated by congress Broke pledge to raise taxes to try and fix economy

1992 election Economy major concern Bush’s reaction: Bush gets blame for situation Clinton wins