The Reagan Revolution The conservative political philosophy of Reagan prompted a re- evaluation of the size and role of the federal government in the economy and society of contemporary America. His political changes brought forth: A.Tax cuts, largest cuts for the wealthy and big business B.Transfer of responsibility to state governments. Less money for the states!!! Why? C.Appointed judges who exercised “judicial restraint” D.A reduction in the number of government programs and business regulations E.Strengthening the US military F.His policies had a definite impact on the relationship between federal and state governments.

The Reagan Revolution continued well beyond the Regan Presidency. A. His vice President, George HW Bush, won the White House in 1988 B. Democrat Bill Clinton had to become more centrist in his liberal views C. George W. Bush became President in 2001.

US goals and policies in the post-Cold War era? Foreign aid Humanitarian aid Support for human rights

George H. W. Bush George H. W. Bush, Fall of Communism in Eastern Europe -Reunification of Germany -Collapse of Yugoslavia -Breakup of the Soviet State Persian Gulf War Operation Desert Storm (Saddam Hussein vs. the UN - led by the US) -First war where American women served in a combat role.

Bill Clinton William J. Clinton, North American Free Trade Agreement (NAFTA) -Full Diplomatic Relations with Vietnam -Lifted economic sanctions against South Africa when its government ended the policy of apartheid -NATO action in former Yugoslavia (air strikes to end its civil war)

George W. Bush George W. Bush, Terrorist attacks on United States soil (9/11/2001) War in Afghanistan War in Iraq Trying to eradicate Al Qaeda

The Supreme Court

U.S. Supreme Court promoted equality and extended civil liberties. The 1940’s, 1950’s, and 1960’s provided a model that other groups have used to extend civil rights and equal justice. It identified a Constitutional basis for a right to privacy that is protected from government interference. Unenumerated rights are not listed in the Bill of Rights like the right to privacy, but the 9 th amendment protects rights not listed in the Bill of Rights. The U.S. Supreme Court invalidates legislative acts and executive actions that the justices agree exceed the authority granted to government officials by the Constitution of the United States - That’s called judicial review! Hey, mama, what’s the name of that case where John Marshall created Supreme Court’s power of Judicial Review? The U.S. Supreme Court protects the individual rights enumerated in the Constitution of the United States – what are the five rights found in the first amendment?

Sandra Day O’Conner

Ruth Bader Ginsberg

Sonia Sotomayor

Elena Kagan

Clarence Thomas

Immigration Why come to the US? – Political freedom – Economic opportunity Where are they coming from? – Latin America – Asia Problems associated with modern immigration – Strain on government services – Filling low paying jobs in the United States – Border Issues – Pathway to citizenship – Bilingual education – Increasing cultural diversity Immigrant contributions – Diversity in music, the arts, and literature. – Role in labor force. – Expanded source of scientist and engineers.

Technology A. American Space Program 1.Dr. Jonas Salk successfully created the vaccine for polio. 2.In the early 1960’s, president John Kennedy pledged increased support for the American space program. The race to the moon continued through the 1960’s. 3.U.S. astronaut John Glenn was the first American to orbit the earth. 4.In 1969, American astronaut Neil Armstrong was the first person to step onto the moon’s surface. He proclaimed, ”That’s one small step for a man, one giant leap for mankind.” 5.Sally Ride was the first female astronaut in the United States.

Jonas Salk

John Glen

Neil Armstrong

Sally Ride

Hubble Space Telescope

Technology and Media B. Technology and Media 1. Over the past three decades improved technology and media have brought about better access to communication and information for rural areas, businesses, and individual consumers. As a result, many more Americans have access to global information and viewpoints.

Technology C. Changes in work/school/health-care: 1.Telecommunicating 2.Distance Learning 3.Growth of service industries 4.Breakthroughs in medical research, including the development of the vaccine for polio by Dr. Jonas Salk 5.Outsourcing and off-shoring of services. Both are done to save the company many

The Role of the Federal Government on the US Economy The federal or national government can and does influence the economy in order to achieve high employment and low inflation by analyzing economic indicators such as: – Gross Domestic product (GDP) – the value of all US goods and services produced in a years time – Exchange Rates – how much the dollar is worth compared to other currencies – Rate of Inflation – how much value does our dollar actually have – Unemployment rate – the percentage of people w/o a job

VIII. Government & the Economy A. Monetary policy is controlled by the Federal Reserve Bank. Its decisions control the supply of money and credit to expand or contract economic growth. The Federal Reserve bank can raise or lower the federal funds rate, thereby affecting how much Americans can borrow at the bank. Above is the federal funds rate that the federal reserve charges banks. When the rate is low, banks pay less to the federal reserve. The banks then pass this savings on to consumers with lower interest rate on mortgages and personal loans. Thus a lower funds rate increases the buying power of the nation.

Fiscal Policy B. Fiscal policy is controlled by the nation’s budget (Congress and the President). The Budget determines the levels of government taxation and spending which influences how much money people spend on everyday items. Lower taxes means more money for citizens, but?? Translation: the government regulates the economy in many ways.