War on the Welfare State Trattner 16. Reagan elected 1980 Time of grass roots tax revolts Republicans won new groups of voters  Northern white Catholics.

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Presentation transcript:

War on the Welfare State Trattner 16

Reagan elected 1980 Time of grass roots tax revolts Republicans won new groups of voters  Northern white Catholics  Working class and lower middle class Southern Whites Both groups unhappy about taxes, affirmative action Religious right major factor in election

Religious Right Moral Majority led by Jerry Falwell Favored  Abolition of abortion  Censorship to limit pornography  Prayer in public schools

Reagan’s philosophy Government should not regulate citizens (health & safety, curbs on business) Taxes should basically support only defense: tax cuts important Civil rights should not be a Federal matter Women should perform mainly domestic tasks Self sufficiency important

Interpreted his election as mandate to dismantle the welfare state Detested big government Wanted reduced federal government spending for social programs Wanted to increase defense spending

Reagan’s changes in 1981 Favored supply-side economics To get economic growth, wealthy persons and corporations must invest in job- creating businesses Cut taxes so that there will be more money to invest Much larger cuts to affluent than to middle and working class

Between 1981 and 1985 Taxes on lowest 20% of Americans went up average of $137 Taxes on highest 20% of Americans went down by average of $2,531

More changes Deep cuts in social programs 57 programs turned into block grants (less for each) AFDC, Food Stamps, work incentive cut Denied benefits to disabled SSI recipients Regulations reduced in equal opportunity, health and safety, civil rights and social programs

Bi-partisan social security reform group did begin taxing social security for higher income recipients Major recession in Reelected in 1984 Second term largely a stalemate

Second term Congress fended off other proposed cuts Denial of SSI benefits to disabled reversed & restored in many cases

Bush I Peace dividend not invested in social programs Major social welfare accomplishment: Americans with Disabilities Act was passed. Recession – budget deficit In % of nation was in poverty

End of Reagan/Bush I Era Major increases in defense spending Increase in deficit Major cuts in social programs Increase in income inequality Policy role of government reduced Appointment of conservative judges Resistance to civil rights activities