1. Presidential Election 1980 Issues Iran Hostages Those Darn Russkies The Economy

2. Reagan Landslide

3. Election Results

4. The New Right "In this present crisis, government is not the solution to our problem; government is the problem.“ - Reagan’s inauguration speech

5. President Reagan given credit for bringing the hostages home January 1981

6. Dramatic Beginning

7. The Actor

8. California Cowboy

9. Reaganomics President Reagan’s Economic Plan

10. Economics The Social Science that analyzes the production, distribution and consumption of goods and services Economy System of production, distribution and consumption

11. Stagflation Stagnation Slow or no economic growth High unemployment Inflation High prices +

12. US Economy under Carter High interest rates High inflation OPEC’s oil embargo

13. Reagan’s economic solution Tax cuts Decrease – social spending Deregulation Increase – military spending

14. Supply-side economics How does it work? Supply creates its own demand Example: When Apple produces more ipads, the price goes down If the price goes down, demand goes up (more people will buy them) → Therefore, produce more to improve the economy More jobs, more money, more stuff

15. Trickle-down Economics More Production More JOBS = More Consumption More money moving around the system

16. The hike in defense spending, and vastly reduced tax revenues resulted in a skyrocketing federal budget deficit. Reagan’s goal to balance the budget by 1984 became infeasible.

17. Strategic Defense Initiative “Star Wars”

18. GDR West Germany Democracy Each person has a vote Individuality/Expression Rights Freedom of movement $ - Free Market economy Varies: wealthy, middle class, working class, poor Communism No voting (one party) State-run press/no expression Totalitarianism (Police state) Cannot leave $ - State controlled economy, Most are at the same level, NOT a good economy DDR East Germany

19. The Wall

20. Wiedervereinigungskater The hangover after reunification

21. Reactions in the US and Europe The United States A weakened USSR Democracy in Eastern Europe No opposition to a Unified Germany Europe Britain and France did not support reunification (Italy and the Netherlands agreed) Weak Soviets = no control over Germany Feared German aggression

22. The US and Germany NATO Trade EU – Germany keeps Britain and France from forming an alliance – German/US relations keep the US involved in Europe