The Reagan Revolution The Triumph of Conservatism

The Carter Presidency Embattled 1. Economy – sluggish economy, double-digit inflation 2. Iran Hostage Crisis & the failed rescue attempt 3. Poor judge of the public mood 4. Crisis of Confidence

“Revolution of Ideas” In contrast to President Jimmy Carter, Ronald Reagan sought to unleash the capitalist spirit, restore national pride and international respect. “America Stand Tall Again” Increase military spending Increase military spending Dismantle the “bloated” federal bureaucracy Dismantle the “bloated” federal bureaucracy Reduce taxes Reduce taxes Undo the welfare state Undo the welfare state “old time morality” – anti-abortion, school prayer “old time morality” – anti-abortion, school prayer

The Making of a President Born in 1911 in Illinois, graduated from Eureka College Was a radio announcer and sportscaster before heading to Hollywood in 1937 B-Movie actor Political Beginnings: Was initially a New Deal Democrat Become a Republican after WWII President Screen Actors Guild – Red Hunter 1964 – Barry Goldwater speech “A Time for Choosing” “A Time for Choosing”“A Time for Choosing” Governor of California

The Move to Reagan By the eve of the 1980 election, Reagan had become the beneficiary of three developments that made his conservative vision of America more than just a flirtation with nostalgia. 1. Demographic shift in America -pop. was aging and shifting to the Sunbelt 2. Evangelical Awakening -Jerry Falwell’s “Moral Majority” “Moral Majority”“Moral Majority” -return to traditional or family values 3. Feminist Backlash -Phyllis Schlafly – “Women who Want to be Women”, “Females Opposed to Equality” Phyllis Schlafly Phyllis Schlafly -Feminists were “anti family, anti children, and pro abortion”

Reaganomics Reagan suggested that Stagflation was the result of government intrusions in the marketplace and from excessive taxes. Therefore, the solution was to… …slash taxes, deregulate industries, laissez-faire approach, and “supply side economics”

Election of 1980 Only 53% registered voters voted – Reagan got 28% of total registered voters

First Term “Government is not the solution to our problem; Government is the problem” Government is the problem” -abandoned price controls on oil -ended the wheat embargo on the Soviet Union -increased defense spending -reduced social spending -tax reform Economic Recovery Act (1981) - cut personal income taxes by 25%, lowered the maximum rate from 70% to 50%, cut capital gains taxes by 1/3 Reminiscent of Alexander Hamilton and Andrew Mellon

Budget Cuts $35 million in budget cuts – education, social programs, welfare, housing War on Welfare – Reagan wanted to remove the “safety net” of the federal government and preserve welfare for only those who truly needed it. Poverty Rates rose – 11.7% to 15.3% in $110 billion $203 billion The economic slump continued through unemployment at 10.4%

The Teflon President James Watt James Watt – Secretary of the Interior – Castigated environmentalists for hindering the commercial use of timber and mineral resources James Watt 200 Reagan appointees were accused of unethical or illegal activities In 1981, Reagan fired over 11,000 members of the Professional Air Traffic Controllers who went on strike Opposed feminism, abortion, affirmative action cut funds for civil rights enforcement, EEOC and initially opposed renewing the EEOC and initially opposed renewing the Voting Rights Act of 1965 How was Reagan able to remain shielded from blame?

America is Back Reagan’s Second Term Challenger: Former Minnesota Senator Walter Mondale and Geraldine Ferraro Democratic Missteps: -Ferraro’s husband -Mondale “Mr. Reagan will raise taxes, and so will I” and so will I” Support for Reagan -AFL-CIO -NAACP -National Organization of Women

Election of 1984

An Economy Driven by Debt Debt – personnel, corporate, governmental – increased significantly During the 1960s people saved 10% of their income, in the 1980s less than 4% Between 1981 – 1987, the federal debt soared to $1.4 trillion Yuppie - culture of greed and self-absorbed materialism *money *status*goods Black Monday – Oct. 19, Dow Jones plummet 508 points or 23%. Double the 13% plunge the market took in 1929! -Lost confidence in Reaganomics -Reagan agreed to work with Congress on deficit reduction -recession

Reagan’s Legacy “curb the size and influence of the federal government” R. Reagan, welfare remained-huge budget deficits -dept. budgets grew: Dept. of Education-income gap -federal budget as a % of the GDP increased -social agenda was held in check -redefine the national political agenda -renewed America’s sense of possibilities -brought inflation under control -nuclear disarmament -longest peacetime prosperity