Ronald Reagan 40th President of the United States 1981 – 1989 Do Now p.969: Liberalism vs. Conservatism

1980 Presidential Campaign His campaign stressed some of his fundamental principles: lower taxes to stimulate the economy less government interference in people's lives states' rights a strong national defense

Domestic Policy supply-side economic policies, “Reaganomics” included the largest tax cut in American history increased defense spending Notable events included: his firing of nearly 12,000 striking air traffic control workers and appointing the first woman to the Supreme Court bench, Sandra Day O'Connor. He believed in federalism, passed policies to encourage development of private business He greatly accelerated the nation's War on Drugs.

Supply-side Economics reduce the growth of government spending reduce marginal tax rates on income from labor and capital reduce regulation control the money supply to reduce inflation

Reaganomics When Reagan entered office, the country faced the highest rate of inflation since 1947 (11.83% in Jan. 1981) double-digit unemployment high interest rates. These were considered the nation's principal economic problems, and are all components of "stagflation."

Assassination Attempt On March 30, 1981, only 69 days into the new administration, John Hinckley, Jr. shot: President Reagan, Press secretary James Brady, Washington police officer Thomas Delahanty Secret Service agent Timothy McCarthy The attempt had great influence on Reagan's popularity; polls indicated his approval rating to be around 73%. Reagan believed that God had spared his life so that he might go on to fulfill a greater purpose.

Air traffic controllers' strike Federal air traffic controllers went on strike, violating a regulation prohibiting Government unions from striking. Reagan announced that the situation had become an emergency as described in the 1947 Taft Hartley Act Reagan stated that if the air traffic controllers "do not report for work within 48 hours, they have forfeited their jobs and will be terminated.“ on Aug. 5, 1981, Reagan fired 11,359 striking air traffic controllers who had ignored his order to return to work

Strategic Defense Initiative The intended goal was to make the US invulnerable to a Soviet missile attack by placing missiles in space This would be done by a laser guidance system, which grew into a series of systems that turned into a layered ballistic missile defense Dubbed "Star Wars" by the news media, many wondered if the technological objective was attainable.

Strategic Defense Initiative

War on Drugs President Reagan signed a large drug enforcement bill into law in 1987 it granted $1.7 billion to fight drugs, and ensured a mandatory minimum penalty for drug offenses. "Just Say No"

Iran–Contra Affair Senior Reagan administration officials secretly facilitated the sale of arms to Iran, the subject of an arms embargo Some U.S. officials also hoped that the arms sales would secure the release of hostages Allow U.S. intelligence agencies to fund the Nicaraguan Contras. Under the Boland Amendment, further funding of the Contras had been prohibited by Congress.