The Reagan Revolution

Jimmy Carter and Iran Iranian Revolution – 1979 – US Support Shah overthrown 1953 CIA Sponsor overthrow of Mohammed Mossadegh Government – Ayatollah Ruhallah Khomeini Fundamentalist Muslim Orthodox Islami Values over western influences Created new Islamic Nation

Continue Iranian Hostage Situation – US Embassy in Tehran seized by fundamentalist mob on November 4, 1979 Khhomeini Endorsed, demanded return of Shah and all his wealth – 52 Hostages Taken – Failed Rescue Helicopter crashed – Hostage Release January 20, 1981 – 444 days of captivity – Released in exchange for release of Iranian funds – Made Carter look week in foreign policy Ronald Reagan elected president during crisis

Election of 1980 Ronald Reagan – Actor turned Political Speaker Campaigned for GM and Republican candidates – Liberal turned conservative Gained fame in his support for Berry Goldwater in 1964 – California Governor Elected in 1966 Served 8 Year Promised return to traditional values and morals Countered the Counter-Culture of the 1960’s and 1970’s

Continue Revival of Evangelical Religion – Became nationalized in 60’s and 70’s Radio and television Colleges and Universities – Jerry Falwell’s Moral Majority By 1980 had 4 million members Became strong financial supports of Ronald Reagan – Carter was a Born Again Christ and active in church – Reagan not an active church member and once divorced » Demonstrates the impact of social/economic issues on the election Expressed the political Goals of the Religious Right – Free Enterprise = no regulation of economy – Reduce the size of government – Repeal of Row vs. Wade – Ban on teaching Darwinian Evolution – Reintroduce Prayer in School – Strong opposition to Soviet Communism

Continue Election Day – Reagan won in a landslide 9,000,000 more then Carter 489 electoral votes to 49 – Won all but four states – Low voter turn out Only 53% of voters went to the polls – Most traditional Liberal/Democratic voters stayed home Reagan Appealed to the Moral Majority – Social/Economic issues dominated election – Disenchanted Liberal/democratic voters felt neither party reflected their values

Reaganomics Ronald Reagan’s economic policies – Objective was to reduce the size of government and promote business “Government is not the solution to our problems” “Government is the problem” – Supply-side Economics Belief that economy would benefit best from reduction of regulation and increase of the free market – Trickle Down Theory More money in the hands of the affluent/wealthy would create better economy – Wealthy would invest/spend money – Tax cuts to reduce the size of government and put more wealth in the hands of Americans Economic Recovery Tax Act Reduced personal income tax on the wealthy and cut capital gains tax

Continue – Spending Increase Increase in defense spending – Created unbalanced budget – Tax cuts and defense spending drove up the national debt – Reagan deficits more then all previous presidents combined – Budget Cuts $35 Billion cut from public assistance to help the poor – Education, cultural programs, housing, food stamps, and school lunches » Social safety nets » Increase of poverty and decrease in support for the poor and children – Debt Crisis 1980’s saw a dramatic increase in debt – Personal, Corporate government » Caused unstable economy in the late 1980’s