The Reagan Revolution

1. The Reagan Revolution Presidents Reagan & Bush (the Elder) Ch 32

2. Ronald Reagan • 1911-2004 – 40th President (1981-89) • Born & raised in IL, Eureka College, IL • Radio sports announcer in Iowa • 1937 signed w/ Warner Brothers Studio • Made more than 50 movies, “Knute Rockne,” “King’s Row” – many of them “B-movies” • President of Screen Actors Guild (SAG) • Testified at HUAC • Governor of California • Married twice – Jane Wyman – divorced 2 kids • Married Nancy Davis in 1952 – 2 kids

3. Return of Glamour to White House • “Hollywood on the Potomac” • Hosted more formal gatherings & parties • Nancy known for her designer gowns & dresses • Nancy also oversaw major redecorating at White House • Assassination Attempt – March 30, 1981 • John Hinckley, Jr. – history of psychiatric problems • Shot in lung, just missed heart • Jim Brady, White House Press Secretary, also shot & permanently disabled • “Brady Bill” – requirement for background checks

4. Rise of the Conservative Movement • Believed large gov’t endangered economic growth & individual choices • Goals: reduce taxes & limit gov’t regulations of industry to promote growth • Advocated by Economist Milton Friedman • Strongly anticommunists & strong defenses • Neoconservatives – some who believed the counterculture & new freedoms degenerated the youth & went against religious beliefs • By the 1980s, called the New Right • Bolstered by the Moral Majority • Founded by Jerry Falwell in 1979

5. “Reaganomics” • Followed theories of supply-side economics • Believes if taxes are reduced, people will work more & then spend more = economic growth thus more taxes to collect in long run • Economic Recovery Act of 1981 • Cut taxes by 25% over 3 years • Richest received biggest tax cuts • reduced federal spending by $40 billion to balance budget from cutting taxes – cut mostly social programs • Called for deregulation of airlines, banking & telecommunications, • Also cut agencies that oversaw these businesses

6. Results… • Severe recession continued into 1983 • Unemployment over 10% • Eventually economy began its turnaround • More Americans labeled “working poor” than ever before • Deficit got even larger • $79 billion in 1981, $221billion in 1986 • Gramm-Rudman-Hollings Act, 1985 – required balanced budget by 1990 • Savings & Loan crisis – 1,000 S&L banks failed • Critics blamed deregulation • Gov’t spent $200 billion to bail out depositors

7. Reagan’s other Domestic issues • Appointed 3 Justices to the Supreme Court • Sandra Day O’Connor (1st woman), Antonin Scalia, & Anthony Kennedy • Promoted William Rehnquist to Chief Justice • Equal Access Act, 1990 – allowed any group access to use public secondary schools • Increased retirement age for Social Security • Air Traffic Controllers Strike, 1981 • Reagan fired all striking workers citing that federal workers were not allowed to strike • “A Nation at Risk” – critical report from Ed Dept • Voucher plans gained momentum

8. AIDS Epidemic • Acquired Immunodeficiency Syndrome • Last stage of Human Immunodeficiency Virus (HIV) • AIDS 1st identified in 1981 • Initially seen mostly in homosexual men & IV drug users, so many in nation ignored issue • As AIDS/HIV spread to all groups of people, we paid more attention • By 1994, AIDS had killed more than 250,000 in US • As of 2009, over 600,000 have died • Reagan later criticized for slow response • Bush, 41 began push for research & treatments

9. Reagan’s Foreign Policy • Aim was to weaken communism w/o war • Built up US Military – largest in peacetime ever • Developed B-1 & B-2 bombers, missile systems • Placed newer nuclear missiles in Europe • Pushed for SDI – Strategic Defense Initiative • Land and space based lasers to destroy incoming missiles • Nicknamed “Star Wars” – never completed • Aided anticommunists to weaken the USSR • Mujahadeen – Afghanistan anti-Soviet guerrillas • Contras – Nicaragua anticommunist counter revolution • El Salvador – tied funding to human rights reforms • Invaded Grenada to stop communists from taking over • “protect the lives of American medical students there”

10. Meanwhile in the Soviet Union… • Premier Mikhail Gorbachev called for reforms • Glasnost – “new openness” – in foreign policy • Perestroika – reform of the Soviet system • Moved away from socialist controlled economy • Came because Soviet economy was horrible • Food shortages, factories couldn’t compete w/ world • Most of Soviet budget went to military • War in Afghanistan drained budget further • Realized could not compete with Reagan’s build up

11. The End of the Cold War • Reagan’s 2nd Term – 4 summits w/ Gorbachev • June 1987 at speech in Berlin he dared… • “Mr. Gorbachev, tear down this wall!” • Which began to happen Nov 1989 after fall of East German gov’t • Became symbol of end of communism in Europe • Communists lost power in Poland, Hungary, Czechoslovakia, Bulgaria, Romania, Albania, Yugoslavia • Soviet Union broke up after failed coup, Aug ‘91 • 15 new republics • Largest one – Russian Federation, Boris Yeltsin

12. Middle East troubles • Lebanon – sent in Marines to help bring peace in civil war • Truck bomb killed 241 Marines at base in Beirut • Libya – Muammar al-Qaddafi • Reagan blamed them for Berlin nightclub bombing & ordered airstrikes on Libya • Pan Am Flight 103 (London to NY) exploded over Lockerbie, Scotland – killed 259 on plane & 11 on ground – 189 from US • Confirmed Qaddafi ordered attack in 2003 • UN imposed sanctions against Libya

13. Iran – Contra Affair (2nd term) • US sold weapons to Iran • Iran promised to try to pressure terrorist groups holding Americans in Lebanon • Against policy to not negotiate with terrorists • Didn’t work anyway • Used $ from sale of weapons to fund Contra rebels in Nicaragua • Violated 1983 law banned sending $ to Contras • Reagan took responsibility for acts • Retained very high approval ratings • Oliver North, aide, convicted for scandal

14. George Bush • 1924 – still alive, 41st President (1989 – 1993) • Born in Mass, lived in Texas – oil industry • Combat pilot in WWII • Yale - Economics • 2 terms in House of Reps, UN Ambassador, Director of the CIA, Reagan’s VP • Married to Barbara, have 4 sons & 2 daughters • Has worked on fund raising causes • Katrina & Tsunami relief

15. Bush’s Foreign Policy • “war on drugs” – climax w/ invasion of Panama to arrest dictator Manuel Noriega • Convicted in US of drug trafficking – 40 yrs in jail • China- Tiananmen Square crackdown • Hundreds of protestors killed • US condemned the action & suspended arms sales • But kept economic & diplomatic ties • South Africa –1st steps of the end of apartheid • Bush met with Nelson Mandela after his release from jail • Somalia – sent in Marines to establish a cease-fire to deliver food to starving people

16. Persian Gulf War I • Caused by Iraqi invasion of Kuwait, Aug 1990 • Saddam Hussein wanted Kuwait’s oil & ports • Bush lobbied for a UN resolution & coalition • By fall of 1990, 700,000 troops (mostly US) were ready in Saudi Arabia • “Operation Desert Storm” • Led by Colin Powell & Gen. Norman Schwarzkopf • 5 weeks of air raids, then 5 days into invasion Iraq agreed to cease-fire • Iraqis lost 25,000 troops, US lost 148 • US helped enforce UN rules until Part II in 2003

17. Bush’s Other Major Policies • Americans with Disabilities Act, 1990 – ADA • Appointed Justices David Souter & Clarence Thomas • “no new taxes” – campaign promise, then signed budget w/ new taxes • Killed his chance for re-election • Also hurt by mild recession • Signed START w/ Gorbachev • Strategic Arms Reduction Treaty – 35% reductions • Negotiated the NAFTA treaty – North American Free Trade Agreement • Ratified by the Senate after push from Clinton