Reagan’s Popularity  Optimism and Hope “Stand Tall in the World”  Charismatic  Great public speaker  Skilled at media relations  Belief in greatness of America  Ability to articulate the beliefs of many Americans  Quick recovery after assassination attempt

Reagonomics  Compare Supply Side & Keynesian Economics:  tax cuts vs. government spending to spur the economy  Reagonomics  supply side economics  Tax cuts  Trickle-Down Economics  Spending cuts for social welfare programs  Deregulation of Business

Era of Prosperity Era of Prosperity  Overall, the economy was doing well  Volcker’s policies reduced inflation  Productivity growing (GNP)…  Unemployment fell…  However…  Budget Deficit increased dramatically (due to tax cuts & increased military spending)  Number of poor people increased?  Biggest gains for wealthiest Americans  1989 – Savings & Loan Crisis  1000 banks failed.  Deregulation allowed risky and fraudulent investments  $200 billion bailout  Derivatives were also deregulated during Reagan’s term….  Read the opposing views articles on Reagan  Question: Were Reagan’s economic policies good or bad for the country?

Peace Via Strength  Massive military build-up  Deficit spending  Outspend the Soviets  Strategic Defense Initiative (“Star Wars”)  Network of land and space-based lasers to destroy missiles  Not fully developed, but basis for some missile defense systems

Cold War Ends…  Causes?: Economy, USSR overextended, Afghanistan, Eastern European resistance, Solidarity, Gorbachev, Reagan’s Military Buildup  Met with Reagan four times from 1985 to 1989  1987 – Reagan’s Speech at Berlin wall Speech at Berlin wall Speech at Berlin wall  Fall of the Berlin Wall  1989 – Poland, Hungary, Czechoslovakia, Afghanistan, Bulgaria, Romania  1991 – Yeltsin rallies supporters to defend Gorbachev against a coup; Soviet Union dissolves & Yeltsin bcms Pres.

Iran-Contra Affair  1979: Sandinistas control Nicaragua  1984: Congress outlaws aid to Nicaraguan rebels (Contras) “Boland Amendments”  US covertly sells arms to Iran for help with hostages in Lebanon  Violates Reagan’s stated policy against negotiating with terrorists  Profits used to fund Contras in hopes of overthrowing Sandinista govt.  How much did Reagan know?  Ordered support for Contras  Knew about arms-for-hostages deal  Unclear whether he knew of $ exchange  11 Convicted; 6 pardoned by Pres. HW Bush  North and Poindexter’s convictions overturned  SOURCE: The National Security Archive, Col. Oliver North takes the blame

Iran-Contra Questions  Was the Iran Contra Scandal a testament to our Constitution and our system of checks & balances?  Should Reagan have been impeached?  Should there be checks on the President’s ability to direct covert operations without the approval of Congress?  Should people associated with the scandal be able to serve in public office again?  Elliott Abrams: Pres. George W Bush’s National Security Advisor on “Global Democracy Strategy”  Poindexter: Directed Pentagon’s Total Information Awareness Program under Pres. George W Bush  Negroponte: Ambassador to Iraq in 2004; Director of National Intelligence in 2005  Reich: oversaw Latin America policy in 2002

Cold War Coups & Covert Activities  1953 – Iran (Eisenhower)  1954 – Guatemala (Eisenhower)  1963 – Vietnam (Kennedy)  1964 – Vietnam & Brazil (Johnson)  1969 & ‘73 – Cambodia & Chile (Nixon)  1970s – Carter – human rights  1980s – Iran-Contra, Iraq, Afghanistan, El Salvador (Reagan)  Source: The National Security Archive,  QUESTIONS:  1) In each instance, what should the U.S. have done?  2) In each instance, should Congress have been consulted?  3) What impacts have these events had? On taxpayer $? On trust in government? On the Cold War? On democracy? On international human rights? On terrorism? Saddam Hussein greets Donald Rumsfeld, then special envoy of President Ronald Reagan, in Baghdad on December 20, 1983

As you watch The Century clip…  What major issues developed as part of the Cold War in the 1980s?  How were those issues resolved?  To what extent were Reagan’s Cold War policies/decisions responsible for the end of the Cold War?  To what extent were additional factors responsible for the end of the Cold War?