1. The Reagan Revolution
“After 200 years, two centuries, America is still a beacon, still a magnet for all who must have freedom. We’ve done our part, and as I walk off into the city streets, a final word to the men and women of the Reagan revolution, the men and women across America who for eight years did the work that brought America back. My friends… we did it” Ronald Reagan, Farewell Address Jan 11, 1989
Conservatives celebrated Ronald Reagan’s election to presidency as a fullfillment of their dreams. Some even referred to it as the “Reagan Revolution”. The would bring a significant shift in the political direction of the nation

2. Reaganomics guides the economy
Reagan based his economy of supply-side economics
If taxes are reduced people will have more money to spend
Longrun-this will help the economy to grow
In order to cut taxes, Reagan had to cut spending

3. New policies to boost economy
Economic Recovery Act of 1981
Reduced taxes by 25% over the next 3 years
Richest Americans would receive the largest cuts
Justified: wealthy would use the money they saved to invest in new business
Congress cut $40 billion from the federal budget by cutting social programs
Reduced governments role in the economy by deregulation
Removal of government control over industries like airlines, telecommunications, & banking
Congress approved most of Reagans plans to institute his supply-side economics

4. Recession and Recovery
severe recession
Unemployment rose to 10%
Hit blue-collar hard
Farmers lost their farms-after facing overseas competition
# of poor increased
Immigrants from Asia/Latin American poured into America
Meanwhile, the rich grew richer

5. Conservative Strength Grows
Reagan wins reelection in 1984
During his 2 terms he appointed judges who would reverse the liberal drift
Sandra Day O’Connor, Antonin Scalia, and Anthony Kennedy
Supported & promoted George H.W. Bush
Bush cemented his support among conservatives by promising not to raise taxes
Despite budget and debt problems, the economic recovery improved the national mood and helped Reagan’s popularity. He used this to strengthen the conservative cause

6. Confronting Challenging Issues
Air Controller Strike
Reagan refused to negotiate & fired air traffic controllers
Admirable, but some felt it was an assault on the labor movement
Social Security Reform
Raised minimum retirement age & increased payroll taxes
Did not solve the long-term problem
AIDS
1981-1st appeared in homosexuals and intravenous drug users
Quickly spread to other groups
No known cure. By 1994-killed 250,000 Americans

7. The Fall of Communism in Europe The End of the Cold War
Early 80s, Reagan began to build up America’s military
Soviets could not keep up
Mikhail Gorbachev reformed the Soviet Union and sought a better US relationship
1989-”Year of the miracle”
Nations in E. Europe experienced bloody revolutions
June 1989-Solidarity-Poland anti-communist party-led by Lech Walesa swept into power
Berlin Wall fell
Aug 1991-Millions of protestors led by Boris Yeltsin broke the Soviet Union
Yeltsin established a friendly relationship with the US