RAH Day 35 Agenda Goal – to understand how Ronald Reagan was both similar to and different from previous presidents. To understand how his views of foreign policy differed from others and the effects these policies had. Review last few questions about Reaganomics Complete p 20 – analyze the cartoon about Reagan’s policies – answer the attached 3 questions Complete p 22 about social situation in 80s (see some video) Complete p 23 foreign policy under Reagan and Bush 41 Complete p 24 and 25 about the middle east

From Hype to Fear Paul Krugman – New York Times, Jan 7, 2008 Not to put too fine a point on it, Barack Obama won his impressive victory in Iowa with a sunny, upbeat message of change. But there’s a powerful political faction in this country that understands very well that any real change will create losers as well as winners. In particular, any serious progressive reform of health care, let alone a broader attempt to reduce middle-class insecurity and inequality, will have to mean higher taxes on the affluent. And members of that faction will do whatever it takes to scare people into believing that change means disaster for the economy.

Goal: stimulate economystimulate economy Method: cut gov’t spending on social programs and lowered income taxes Result: Slashed poverty programs like Women, Infant and Child (WIC) program cut even though 22% of all US children lived in poverty, cut school lunch program and student loans.poverty programs No spending on AIDS research until after 1986 Massive Tax cuts for the rich - top tax rate decreased from 70% in 1980 to 50% in 1982 to 28% in 1988 while the tax rate for the median income 1980 – 28%, %, 1988 – 28% Gap between rich and poor got wider, cities got poorerrich and poor Little change in SS & Medicare Recession until 1982, then significant GDP growth to 1989, decrease in inflation, increase in jobs, wages, and confidence in economy Massive increase in national debt and federal government yearly deficits, Trade deficit p 8 - Conservative Policies Under Reagan and Bush - Reaganomics

Reagan’s solutions to the above problems Supply-Side economics = Reaganomics 1.Cut gov’t spending, especially entitlement programs 2.Cut taxes, especially on businesses and the wealthy 3.Simplify the depreciation schedule 4.Cut business regulations including environmental enforcement 5.Improve monetary policy 6.Promote confidence in the US 7.Cut and limit government activity related to business Producer/supplier of goods and services Consumer of goods and services Keynesian policy Government $$$ - welfare, jobs, housing subsidies, food stamps

1.Cut gov’t spending, especially entitlement programs 2.Cut taxes, especially on businesses and the wealthy 3.Simplify the depreciation schedule 4.Cut business regulations including environmental enforcement 5.Improve monetary policy 6.Promote confidence in the US 7.Cut and limit government activity related to business Reagan’s solutions to the above problems Supply-Side economics = Reaganomics Producer/supplier of goods and services Consumer of goods and services Supply side policy Government Business tax cuts, investment tax cuts, deregulation, lower interest rates Trickle $ $ $ Down

Goal: stimulate economy Method: increase spending on military Result: new weapons systems like MX nuclear missile, the B-1 long- range bomber Plans for the Strategic Defense Initiative SDI otherwise known as Star Wars Huge budget deficits and national debt increases Goal: promote traditional values and morality Method: naming conservative judges to federal judiciaryconservative judges Results: overturned or weakened laws about abortion (but it remained legal today), affirmative action, civil rights for women, criminal rights and discrimination protections (especially for gays and women) Other methods – pushing for tougher laws against drugs, indecency p 8 - Conservative Policies Under Reagan and Bush

Goal: reduce the size and power of federal gov’t Method: deregulate savings and loan industry (and other industries) Results: huge screw up in the S and L industry leading to massive bankruptcies of these institutions and the FSLIC bailout of over $200 billion Increases in mergers and acquisitions leading to massive new companies but also new innovations and competition leading to lowered prices and better products Method: cut EPA Result: severe decrease in environmental prosecutions, increased logging, grazing and mining and sale of public lands leading to increased pollution and habitat loss p 8 - Conservative Policies Under Reagan and Bush

Mean (average) family income in current 2005 $ – Piketty and Saez (2006)

Bottom Quintile Mean family income -current 2005 $ – US Census Bureau CPS

2nd Quintile Mean family income -current 2005 $ – US Census Bureau CPS

3rd Quintile Mean family income -current 2005 $ – US Census Bureau CPS

4th Quintile Mean family income -current 2005 $ – US Census Bureau CPS

Top Quintile Mean family income -current 2005 $ – US Census Bureau CPS

Top 5% Mean family income -current 2005 $ – US Census Bureau CPS

Comparing Quintiles Mean family income in current 2005 $ – US Census - CPS

NationsKey peopleEventstrends USSRMikhail Gorbachev Boris Yeltsin Perestroika, Glasnost, START, INF, Fall of USSR Democratization, capitalism, failure of communism, warming of relations PolandNew constitution, fall of communism Democratization, capitalism GermanyFall of Berlin wall Reunification Democratization YugoslaviaSlobodan MilosovicBalkanization and 2 civil wars Democratization, capitalism, genocide ChinaDeng Xioaping, Li Peng Tiananmen Square Economic reform Strengthening authoritarianism, capitalism, GDP growth NicaraguaSomoza, Ortega, chamorro, contras, Sandanistas Civil war, CIA activities, aid to contras, Boland A. Democratization,

NationsKey individualseventsTrends PanamaNoriega, Bushdrug dealing Invasion of panama, arrest of Noriega War on drugs, yankee imperialism IranAyatollah Khomeini, Reagan, Ollie North, Larry Walsh Iran-Iraq War, Hostages & civil war in Lebanon, trading guns for money for hostages Lying to Congress, law breaking, hypocrisy IraqSaddam Hussein, GHW Bush, Colin Powell, Norman Schwartzkopf War with Iran, money and weapons for Hussein, war against Iraq War and mistakes

Locations of CIA covert operations to overthrow unwanted leftist governments $ $

Median family income in current 2005 $ – US Census Bureau Current Population Survey