Reagan- Clinton

1. Reagan- Clinton 1980-2000

2. Toward Conservatism The policies of Richard Nixon and Gerald Ford and the writings of political commentator William F. Buckley and economist Milton Friedman gave evidence of a steady shift to the right

3. Toward Conservatism By the 1980s, a loose coalition of economic and political conservatives, religious fundamentalists and corporate sponsored political action committees (PACs), had become a potent force for change

4. Toward Conservatism These groups hated big govt, New Deal liberalism, gun control, feminism, gay rights, welfare, affirmative action, sexual permissiveness and drug use, which, in their view, were responsible for undermining family and religious values, the work ethic and national security

5. Conservative Issues Taxpayer�s Revolt � 1978 � CA voters led the revolt with Prop. 13, cutting property taxes Arthur Laffer � promoted tax cuts would stimulate economic growth Jack Kemp and William Roth proposed legislation for 305 federal tax cut, which became the basis for Reagan�s tax cuts

6. Conservative Issues Moral Revival � Televangelists (Pat Robertson, Oral Roberts and Jim Bakker) had a combined weekly audience of 60-100 million Jerry Falwell founded the Moral Majority, graded candidates with a moral report card and financed campaigns to unseat liberal members of Congress

7. Conservative Issues Conservatives attacked feminist�s ERA Phyllis Schafly organized the Eagle Forum, which argued for the traditional, Biblical view of women�s role in society Religious fundamentalists attacked �secular humanism� as a godless greed taking over public education

8. Conservative Issues Conservatives campaigned for the return of prayer in schools Roe v. Wade, 1973, sparked the right-to-life movement who believed that life begins at conception

9. Conservative Issues Affirmative Action � In 1965, Pres Johnson committed the govt to a policy of AA to ensure the under-privileged minorities and women would have equal access to jobs, education and promotions Many white males charged �reverse discrimination� imposed by the govt�s support of racial and ethnic quotas

10. Conservative Issues Regents of the Univ. of CA v. Bakke, 1978 � The USSC ruled that college admissions could not be based on race along This encouraged conservatives to intensify their campaign to end all quotas and preferential treatment based on race or sex

11. Election of 1980 Democrats nominated Carter Republicans nominated Reagan Anderson, a republican, ran as an independent Carter represented liberal traditions and emphasized that he maintained peace, was experienced and said Reagan was �dangerous�

12. Election of 1980 Ronald Reagan, former CA governor and actor, blamed Carter for the double-digit inflation, heavy unemployment, high interest rates and America�s �humiliation� over the Iran hostage crisis Reagan pointed to the �misery index� (rate of inflation + rate of unemployment) of 28

13. Election of 1980 Reagan as the TV audience, �Are you better off now than you were four years ago?� Most of America said no Reagan took 51% of the popular vote and 91% of the electoral vote

14. Election of 1980 Blue collar workers left the Dem party, 50% voted for Reagan For the first time since 1954, Reps controlled the Senate, the Moral Majority helping defeat 11 liberal Democrats Republicans took 33 seats in the House, marking the end of Democratic dominance

15. Reaganomics On the day Reagan was inaugurated, the Iranians released the American hostages Two months later, he survived a serious gunshot, handling it with wit and charm from his hospital room

16. Reaganomics Reagan promised that his administration would lower taxes, reduce govt spending on welfare, build up the military, and create a more conservative court He delivered on all four promises

17. Reaganomics Supply-side Economics - Reagan�s director of the Office of Mgt and Budget advocated tax cuts and reduction in govt spending to increase investment by the private sector and lead to increased production, jobs and prosperity This contrasted with Keynesian economics favored by the Dems

18. Reaganomics Supply-side Economics reminded critics of the �trickle down� economics of the 1920s when the wealthy prospered and some benefited the middle class and poor

19. Reaganomics Federal Tax Reduction � In Reagan�s �First 100 Days� Congress passed almost al the tax cuts Reagan asked for � including a 25% cut over 3 years Cuts in corporate income tax, capital gains, gift and inheritance taxes were felt mainly by wealthy Americans

20. Reaganomics Federal Tax Reduction � Under Reagan, the top income earners received a 28% tax cut Small investors were helped by allowing them to invest up to $2000 each year in an Individual Retirement Account (IRA) without paying tax on the money

21. Reaganomics Spending Cuts � With the help of southern Democrats �boll weevils�, Rep cut over $40 billion from domestic programs such as food stamps, student loans and mass transportation and increased spending for the military No cuts in medicare or SS but Congress raised the retirement age

22. Deregulation The Reagan administration followed up their promise to reduce federal regulations on business and industry Restrictions were eased on savings and loans, mergers and takeovers by large corporations, and environmental protection To help the auto industry, emissions and safety were reduced

23. Deregulation Sec. of the Interior, James Watt, opened federal lands for increased coal and timber production and off shore waters for drilling Reagan allowed the Clean Water Act, 1972, to expire Congress overrode his veto and authorized spending $20 billion to clean up the country�s water

24. Labor Unions Reagan took a strong stand against unions, despite being the president of the Screen Actors Guild He fired thousands of Air Traffic Controllers (PATCO) for violating their contract by striking The govts stand against unions hastened their decline in the 80s

25. Recession and Recovery 1982 � worst depression since the 1930s Banks failed and unemployment was up to 11% Reagan�s policies took hold and recovery occurred The Japanese agreed to voluntary quotas on their cheaper imports

26. Recession and Recovery The recovery widened the gap between rich and poor The upper income earners, yuppies, (young, urban, professionals) enjoyed higher incomes and material benefits The standard of living for middle America remained stagnant

27. Household Income, 1975-1995