1. Reagan Revolution

2. Today’s Objective  After today’s lesson, students will be able to…  Assess Reagan’s presidency in both the domestic and foreign sectors  Essential Skill:  Explicitly assess information and draw conclusions

3. Briefing  Proactive alternative to 1970s malaise  Optimistic & confident  Skillful orator (actor)  Reenergized America  Answer for stagflation…

4. The Reagan Background  Hollywood Actor in 1937, made 53 films  Although Reagan began his political life as a Democrat, by 1962 he found his home in the Republican Party  In 1966, he became the governor of California  Had trouble meeting his goals for cutting the size of government  After two terms as governor, he wanted to run for the presidency  Reagan was the hero of a growing movement called the New Right  His powerful personality, optimism, and acting skills drew many Americans – even Democrats – to his side  Reagan’s wife, Nancy Reagan, was one of his greatest allies.

5. “New Right” Conservative Shift  Scope of government should be as small as possible; “necessary evil.”  Free market economy: minimal regulation and intervention  Reduce taxes; eliminate wasteful social programs  Cold warrior “hawks”; defense spending  Emphasize traditional moral values and Christian religion

6. Reaganomics  Regan’s plan for tax and spending cuts  Two goals  Reduce taxes to stimulate economic growth  Cut the federal budget  Based on supply-side economics  A theory that says breaks for businesses will increase supply of goods and services, aiding the economy

7. Reaganomics  Free from the burden of heavy taxes and government regulation, American capitalism would surge to new heights  25% income tax cuts for individuals and businesses  Reduce government spending; cut social welfare program  Deregulate private business  Raise interest rates (and limit amount of the money in circulation) to reduce inflation  Results:  Initial recession and then growth  Budget deficits and disparity of wealth

8. Unemployment

9. Income Tax Rate  How does income tax rate impact the government’s budget?  How does income tax rate impact government spending>

10. Peace via Strength

11. Strategic Defense Initiative  Announced in March 1983  AKA “Star Wars”  Sought to develop a system to destroy incoming missiles

12. Latin America & Middle East Policy  El Salvador  Violent civil war between Marxist guerillas and government troops supported by armed extremist groups  Reagan administration supported Jose Napoleon Duarte – a moderate leader who won the 1984 election

13. Latin America & Middle East Policy  Nicaragua  US backed Anastasio Somoza Debayle was ousted by the Sandinistas – a Marxist group  Reagan cut off aid to Nicaragua saying that the Sandinistas were backed by the USSR  Reagan then allowed the CIA to equip and train a Sandinista opposition group called the Contras  Boland Amendment : Congress banned all further direct or indirect U.S. support of the Contras

14. Latin America & Middle East Policy  Grenada  Island was tied to Communist Cuba  Reagan sent 2,000 troops in 1983 to overthrow the pro-Cuban government  18 U.S. soldiers die

15. Latin America & Middle East Policy  Lebanon  Muslim and Christian groups waged a civil war  Israel invaded Lebanon to expel the PLO  US sent 800 peacekeepers  A suicide bomber killed 241 marines  Reagan withdrew the troops

16. Iran-Contra Affair  1979: Nicaraguan Civil War  1984: Congress banned aid to Contras  US covertly sells arms to Iran in order to get US hostages released in Lebanon  Violated Reagan’s policy against negotiations  1987 – Profits used to fund Contras in order to overthrow Sandinistas  How much did Reagan know?  Ordered support for Contras, knew about arms-for- hostages deal, unaware of Contra funding  11 Convicted & 6 pardoned by President H.W. Bush

17. Changes in the Soviet Union  Mikhail Gorbachev: General Secretary of the Communist Party, 1985-91.  Sought better relations with the West  Pursued internal reforms (perestroїka, glasnost).

18. Cold War Ends  Causes  Mikhail Gorbachev, Afghanistan, E. Europe demands change, massive U.S. military buildup  1987 – Reagan’s speech at Berlin Wall  1989 – Fall of the Berlin Wall  1989 – Poland, Hungary, Czechoslovakia, Afghanistan, Bulgaria, Romania  1991 – USSR dissolves