Objectives:  What are the differences between conservatives and liberals?  Why did the conservative movement gain so much influence during the 1980s?  What is Reaganomics and was it effective in reducing unemployment, inflation and the size of government?

“Government is not the solution to our problem. Government is the problem.” “Supply creates its own demand.” "Only by reducing the growth of government can we increase the growth of the economy.” (All of these quotes are by Ronald Reagan)

Basic Differences  the government should regulate the economy to protect people from the power of large corporations & wealthy elites  The gov’t should help disadvantaged Americans through social programs and by making the wealthy pay more taxes  Support high taxes on the wealthy = taxes weaken the power of the rich and the gov’t can transfer the wealth to others to keep society equal  Opposed to the gov’t supporting or endorsing religious beliefs  Believe that most social problems are caused by economic inequality  The government should stay out of regulating the economy because it makes it less efficient, causing less wealth and more poverty  Oppose high taxes that transfer the wealth from the rich to those who are less wealthy  That taxes and gov’t programs take away people’s incentive to work harder  Believe that religious faith is important in sustaining society and that most social problems result from issues of morality and character Liberals believe:Conservatives believe:

The Sunbelt = new industrial region in the West and Deep South -Move there b/c there is less unemployment and pollution there -Americans in the Sunbelt oppose high taxes and federal regulations that interfere with their region’s growth The Sunbelt

Conservatism Gains Support  The New Right = turn to conservatism because they fear society has lost its traditional values  Oppose the passage of Roe v. Wade, oppose limiting prayer in school, and oppose the feminist movement  Televangelists = evangelical ministers who participated in a religious revival after WWII with the use of the television Pat Robertson, Jerry Falwell Help bring new voters to the conservative side

Between 1937 and 1962, Reagan made over 50 movies -Learned skills like how to speak publicly and project an image Ran for governor of California in 1966; won the election and was reelected in 1970

1980 Election  Campaign tactics:  1) Appeal to those who are frustrated with the economy  2) Promised to cut taxes, increase defense spending, and support a constitutional amendment to ban abortion Helped him win conservative voters  Won 51% of popular vote and 489 electoral votes  Republicans also gained control of the Senate

2 Ideas for Fixing the Country’s Economy  Monetarists = inflation was caused by too much money in circulation = fix it by raising interest rates  Supply-side Economics = economy was weak because taxes were too high, so lowering taxes will boost the economy  people will invest and have more $$ to spend  Reaganomics is a combination of both

Reaganomics  1) Budget Cuts:  Deregulation = cutting back the Federal Government = letting businesses have more freedom  Funding cut to programs that helped the poor, ex: food stamps, welfare  2) Tax Cuts:  Cut taxes by 25% = increases the budget deficit = when you spend more than what you have coming in  3) Increase Defense Spending:  doubled defense budget  Strategic Defense Initiative (SDI) = nicknamed “Star Wars”= Keep us safe from other countries’ missiles

Reaganomics  Reaganomics, Good:  People had new confidence in Reagan and the economy = went out and spent $$, economy improved  Reaganomics, Bad:  Tax cuts = usually helps the rich while budget cuts hurt poor people  “trickle-down economics” = help out businesses and the rich = only a little bit of wealth would “trickle down” to average Americans

Election of 1984  1981 = assassination attempt  Reagan helped the economy = very popular  Reagan/Bush vs. Walter Mondale/Geraldine Ferraro (1 st woman on Presidential Ticket)