2. The Reagan Revolution How do conservative domestic polices under Reagan change America?

3. Conservative Revolution 1980 w/ help of a conservative coalition of “Reagan Democrats” & the “Moral Majority”, Gov. Reagan beats Carter Reagan wants to fix economy with “new right” ideas: 1. Shrink size of federal government 2. Cut entitlement programs & affirmative action 3. Promote family values, patriotism 4. Strengthen national defense

4. Supply Side Economics aka Reaganomics Reagan’s budget director David Stockman believed in “trickle down economics” and wanted to get “welfare state” under control 1) Cut taxes on businesses 2) cut the capital gains tax (allows more products to be made, which will drive down prices) 3) Cut taxes on the wealthy, middle class they will buy more products, which will then create jobs for the poor 4) Cut some govt spending

5. Reagan’s budget cut mass transit, food stamps, welfare, Medicaid and job training (all used by the poor) Reagan will not cut middle class programs like Social Security, Medicare or veteran’s benefits Reagan’s ideas are criticized as the rich are getting richer and poor getting poorer, Nancy Reagan’s luxuries compound this Recession hits hard from July 81- Nov 82 but as more middle class tax cuts happen, people went on a spending spree Inflation down, unemployment falls, stock market rises Reagan appoints James Watt to Dept of Interior, Watt allows more drilling & sells park land, Reagan also begins to cut the EPA

6. Deregulation Reagan removes lots of government controls on banks & businesses Reagan deregulates airline industry & fires striking air traffic workers VQ1) Why does Reagan feel ATC’s got a good deal? VQ2) What does Reagan say about striking federal employees? http://www.youtube.com/watch?v=Dc8brHWFZMY&safe=active Conservative Justices In an effort to reshape the court, Reagan appoints several conservative justices, including a few to the Supreme Court

7. 1984 Re-election As economy begins booming, Reagan runs for re-election Democratic primary includes for VP Walter Mondale, Sen Gary Hart and Rev Jesse Jackson Mondale, wins nomination picks Geraldine Ferraro as VP nom. Reagan wins a landslide re- election

8. War on Drugs Despite declines since the 70s, drug use begins to rise in the mid 1980s esp in inner city with introduction of crack cocaine Many argued drugs should be legalized/taxed to reduce crime Reagan Admin launches a war on drugs with aggressive prosecution, and long jail terms, esp for crack Nancy Reagan becomes spokesperson for “Just Say no”!

9. America United or Divided? Many lingering social problems in 1980s America 1. Women make less money than men – open book to page 842 -What job is nearly equal -Which job has biggest gap? 2. Af-Americans feel they are targets during Reagan Years, since more are sent to prison on drug charges, poverty increases 3. Huge increase in Latino pop w/ Reagan 1986 amnesty plan 1986: Sp Shuttle Challenger explodes after liftoff, Reagan’s speech rallies Americans together (known as Great Communicator) http://www.youtube.com/watch?v=qoQlkFryriQ&safe=active

10. AIDS Epidemic 1980s: new disease that effects immune system called AIDS Disease transmitted through bodily fluids, many early victims were homosexual or drug users Moral Majority leader Jerry Falwell says “AIDS is God’s way of punishing Homosexuals” However, the disease is also being transmitted through blood transfusions and heterosexuals 1987: Atty Geoffrey Bowers is fired by his law firm for having AIDS