The “Reagan Revolution”

The Charismatic President

BUT… Reagan - Domestic Deregulation “Supply-Side” Economics (“Reaganomics”) Deregulation Economy did begin to recover because of several reasons Money policies of the Federal Reserve Board helped lower inflation Weakening strength of OPEC Consumer spending & Investment increased BUT… National Debt was growing rapidly…WHY? Entitlement Programs (S.S. & Medicare) Reagan Tax Cuts (largest in U.S. history) Massive increase in military spending

Ronald Reagan Evil Empire Speech Reagan - Foreign Ronald Reagan Evil Empire Speech REAGAN DOCTRINE The U.S. would support opponents of communism anywhere in the world even if the regimes they were challenging had no ties to the Soviet Union (example  Grenada) COLD WARS Not such a long time ago in a country not far away at all… SDI: Strategic Defense Initiative

America and the Waning of the Cold War

The Fall of the Soviet Union Berlin Wall comes down; every communist state in Europe overthrows its gov’t or forces change Mikhail Gorbachev becomes leader of the Soviet Union 1987 1991 1985 1989 The Soviet Union officially dissolves “Tear Down This Wall” Speech

The Fading of the Reagan Revolution Savings and Loan Crisis Iran-Contra Scandal

George H. Bush DOMESTIC FOREIGN Won the election of 1988 Faced a huge federal deficit In campaign – “Read my lips, no new taxes” Won the election of 1988 DOMESTIC FOREIGN Tax hikes violated campaign promise The U.S. was the only superpower left in the world Faced a recession in 1990 First Gulf War following Iraq’s invasion of neighboring Kuwait

“It’s the economy, stupid” The Election of 1992 Bill Clinton (D) Wins “It’s the economy, stupid”