1. Ronald Reagan Administration

2. Reagan’s First Term Domestic Policies
Supply–side economics: Cut taxes of businesses and individuals – so they can reinvest in business’ who will hire more workers & increase production
Claims Supply–side economics will end inflation without increasing the national debt–becomes known as Reaganomics
Reduced many social programs in an effort to balance the budget – but national debt continued to rise

3. “Star Wars”- In the Strategic Defense Initiative (SDI) Reagan pushed for the creation of a massive satellite shield to destroy any incoming Soviet missiles

4. Farming Surpluses Farmers faced massive surpluses
Administration paid farmers not to plant on millions of acres
It was hoped that the supply would be reduced & prices would rise
Plan fails
Sound Familiar?!?!

5. Immigration Reform & Control Act (1986)- forbids employers from hiring illegal immigrants

6. Reagan’s First Term Foreign Policy
Reagan takes a hard line toward Détente calling for economic sanctions on Poland
Reagan provided aid to Latin American nations facing communist takeovers:

7. El Salvador: Sent weapons, military advisors to help prevent a communist takeover in a civil war
Nicaragua: Communist Sandistas overthrew an anti-communist dictator. Reagan supplied aid to the Contras through the CIA – 1987 Congress bans aid
Granada (1983): Reagan feared Granada may become a communist base – so he orders a surprise invasion

8. Prime Minister Eugenia Charles of Dominica
Reagan meets with
Prime Minister Eugenia Charles of Dominica
in the Oval Office about ongoing events in Grenada

9. Reagan sends marines into Lebanon to end fighting between Christians & Muslims- the peacekeeping effort fails
Concerns about terrorism begin to rise

10. Reagan’s Second Term Domestic Policy:
Attempted to balance the budget by cutting taxes & federal spending but a huge trade imbalance leads to increased national debt
Declares the “War on Drugs”

11. Reagan’s Second Term Foreign Policy
Iran - Contra Affair:
Top aides of Reagan administration sell weapons to Iran
Iran helps free American hostages in Lebanon
Money from arms sales is used to aid the Contras in Nicaragua
**Reagan was negotiating with terrorists & providing aid to the Contras was banned by congress**

12. Détente Returns:
- Détente is renewed when Soviet leader, Gorbachev, increases political freedom & allows free enterprise in the Soviet Union & Eastern Europe
- U.S. & Soviet Union agree to eliminate short & medium range land missiles

14. Berlin Wall Speech 1987

15. Reagan Berlin Clip
Reagan Clip

16. Other Foreign Policy Concerns:
Continued increase in terrorism
Drug Trade
Ending Apartheid (South Africa)