1. America in the 1980s and 1990s (1980-1999)
Lesson 2 The Reagan Era

2. America in the 1980s and 1990s (1980-1999) Lesson 2 The Reagan Era
Learning Objectives
Analyze Reagan's economic policies as President.
Examine Reagan's leadership and how he strengthened the conservative movement.
Evaluate the steps taken to address various issues in the 1980s and early 1990s.
supply-side economics
deregulation
budget deficit
national debt
Savings and Loan crisis
Sandra Day O’Connor
vouchers
Acquired Immunodeficiency Syndrome (AIDS)

3. A New Direction for the American Economy
Tax Cuts and Deregulation
“Reaganomics” – reduce taxes for the upper class.
1. Reduce government spending
2. reduce federal income tax
3. reduce government regulation
4. control money supply, reduce inflation
Economic Recovery Act 1981
Deregulation – removal of federal control over economy
Riches Americans received largest tax cuts
Reduce spending on social programs
Cut taxes + reduce federal spending
Supply-Side Economics “trickle down”
More money to the rich
Create more jobs, more money to spend, = increased economy.
Regan Revolution

5. Problems with Deficit
Federal Budget Deficit – government spending more money than it takes in. ($79 B in $221B in 1986)
Reagan spent money on the military/ while reducing taxes
Gramm Rudman-Hollings Act – federal government reduce spending once the deficit reaches a certain limit
Savings and Loan Crisis – many banks failed
Fraudulent behavior + too many risky loans
People blame Reagan for deregulation
Federal Government bails our banks
Social Security Reform Act – 1983
(SS = national retirement system )
Raised min retirement age
Increased payroll taxes for social security

6. A New Direction for the American Economy
Trade with Japan
Japan came to dominate the American Economy
Cars, TV’s, Technology
Decline in American made cars, electronics
Reagan imposed a tariff on Japan imports
Increased prices of products. (tariff eventually removed)
Organized Labor
More conservative / anti-labor movement
Air Traffic Controllers go on strike
Reagan fired the federal workers instead of negotiating

7. A New Direction for the American Economy
Ronald Reagan had to find a way to deal with inflation and stimulate the economy. Analyze Data How effective were Reaganomics in tackling inflation?

8. Analyze Information According to the theory of supply-side economics, how can tax cuts stimulate the economy?

9. Conservative Momentum Continues
Reagan increased popularity – strengthen conservatism
America reelects Reagan election
Conservative Court
Sandra Day O’Connor + Antonin Scalia + Anthony Kennedy
First Female Justice
Upheld Roe v. Wade
Equal Access Act
Allow any group to form in secondary schools (religious)
Board of Ed of Westside Community v. Mergens
George H.W. Bush + Election of 1988
VP for Reagan for 8 yrs
Continue conservative movement in Government
ADA – American with Disabilities Act
People with disabilities receive same opportunities
Employment, education, access to public facilities

10. Culture, Challenge, and Change
1980’s
Divided Nation - Cultural/economic/race/ethnicity/gender
“Yuppies” + Material Generation
Americans born baby boom post WWII
Possessions became an obsession
“Fit” – healthy lifestyles + looking good
People focused on improving themselves not improving society
NASA + Space
Challenger – shuttle exploded after take off
Christa McAuliffe – school teacher (first private citizen to go to space)
History.com Challenger

11. Cold War and 1980’s Challenges at home 1984 Olympic Games – L.A.
USSR and other communist countries boycott
Challenges at home
Education + Drugs + Health
“Nation at risk” – students scored lower on standardized tests
Vouchers – government checks people used to send their kids to private schools
Problem: take funding away from public schools
Drug epidemic – increased drug smuggling into the USA
Mexico + Cuba
Health –
AIDS
No known cure