1. Reagan and George H.W. Bush

2. What were the major characteristics of the conservative Reagan Revolution?
Conservatives celebrated the election of Ronald Reagan to the presidency, referring to it as the “Reagan Revolution.”
The Reagan Revolution brought a significant shift in the political direction of the nation.

3. Reagan based his economic policy on the theory of supply-side economics. He believed that lower taxes would increase spending.
Some people referred to his economic policies as Reaganomics.

4. Reagan’s Economic Recovery Act of 1981 cut taxes by 25 percent.
He convinced Congress to cut $40 billion from the federal budget, largely from social programs.
He brought deregulation to industries including the banking, telecommunications, and airline industries.

5. In spite of Reagan’s policies, the economy experienced a severe recession lasting from 1980 to 1982.
More than 10 percent of workers were unemployed.
Blue-collar workers were hit especially hard.
The number of poor people grew, while the richest percentage of Americans became richer.

6. The national debt rose to $2.5 trillion.
The recession ended in The economy began to rebound, but other economic problems persisted.
Reagan increased defense spending, but he did not persuade Congress to make huge budget cuts in other areas.
In 1985, Congress passed the Gramm-Rudman-Hollings Act, requiring automatic cuts in federal spending.
Nevertheless, the federal budget deficit grew from $79 billion in 1981 to $221 billion in 1986.
The national debt rose to $2.5 trillion. 6

7. In 1989, the Savings and Loan crisis occurred.
About 1,000 banks failed due to fraudulent behavior and risky loans.
The federal government spent more than $200 billion to bail them out.
Many blamed Reagan’s deregulation policies for allowing banks to make such risky investments.

8. Despite the deficit, the growing economy made Reagan a very popular president who strengthened the conservative cause.
He appointed conservative justices to the Supreme Court, including Sandra Day O’Connor, the first female justice.
He promoted legislation allowing religious groups access to public school facilities.
Reagan easily won reelection in 1984, but the Democrats retained control of the House of Representatives. 8

9. Reagan’s Vice President George H.W. Bush won the presidency in 1988.
He won by calling for a “kinder, gentler nation” and promising not to raise taxes. 9

10. Challenging issues from the 1980s would continue to confront Bush.
the rising costs of Social Security
the budget deficit
the failure of public education
Bush called for community volunteers to provide services for the needy. He supported the use of vouchers in public schools. 10

11. Another challenge faced the nation, in the form of a new disease called Acquired Immunodeficiency Syndrome (AIDS).
President Reagan responded slowly to the AIDS crisis. Funding for research on the disease rose during George H.W. Bush’s term.
Nevertheless, by 1994, AIDS had killed more than 250,000 Americans.