How do conservative domestic policies under Reagan change America? The Reagan Revolution How do conservative domestic policies under Reagan change America?

1980 Election: Conservative Revolution Jimmy Carter challenged in own party by Ted Kennedy Conservative coalition of “Reagan Democrats” & “Moral Majority” help Reagan win easily election Reagan wants to fix America with “new right” ideas: 1) Shrink size of federal government by cutting entitlements 2) Promote family values 3) Promote patriotism & strengthen national defense Discuss: Why do you think Reagan won in 1980?

Supply Side Economics aka Reaganomics Reagan’s budget director David Stockman believed “trickle down economics” would get “welfare state” under control Supply Side Economics aka Reaganomics 1) Cut personal taxes (wealthiest Americans get largest tax cut) 2) Cut the capital gains and estate taxes 3) Cut taxes on corporations 4) Cut Fed budget for mass transit, food stamps, welfare, Medicaid, mental health & job training but increase defense sp.

Reagan’s ideas are criticized as the rich are getting richer and poor getting poorer, Nancy Reagan’s luxuries compound this Plan backfires, recession hits hard from July 81- Nov 82, Reagan must raise some taxes However, with low oil prices, higher interest rates, stronger dollar and less inflation economy begins to recover by 1983

Deregulation Reagan begins to deregulate businesses by removing govt controls on banks, businesses and stock market Results: 1) Prices fall w/ more competition 2) Corporate profits & stocks rise 3) More bank failures as banks take more risks Reagan appoints more conservative justices(many pro-business)

Reagan Rolls Back 70s reforms In his goal to reduce role of govt in people’s lives, Reagan rolled back many 1970s reforms Environment: James Watt as head of Dept of Interior Watt will begin to sell of protected land to oil and timber companies, Reagan also cuts EPA budget Affirmative Action: Reagan actively fights to reduce program Dept of Education: less fed guidelines, more local control

Air Traffic Control Strike Critics accused Reagan’s policies of being pro-business and anti-union/worker – union membership declines in 80s Air traffic controllers go on strike, claim wages have been flat, issue: public safety vs. right to strike, Reagan fires strikers http://www.youtube.com/watch?v=Dc8brHWFZMY&safe=active Discuss: Explain if Reagan did the right thing by firing the striking air traffic controller?

1984 Re-election 1984: economy booming, Democrats challenging Reagan incl: Sen Gary Hart, ex-VP Walter Mondale, & Rev Jesse Jackson Mondale wins nomination picks Geraldine Ferraro as VP nom. Reagan wins a landslide re-election