1945 and Beyond-5

1. 1945 and Beyond-5 Carter Reagan Bush

2. Election 1976 • Democrats: Jimmy Carter (Governor of Georgia) little political experience; an outsider. Proved to be an advantage. 297 • Republicans: Gerald Ford 240 • Independent Republicans: Ronald Reagan was unhappy with Nixon’s wage-price-rent controls and his Détente with the Soviets, visit to China was Laissez-Faire and did not want to negotiate with communists

3. Carter • Born-again Christian • Surrounded himself with Georgians= some resentment by other Democrats • Human Rights was big with Carter and his Sec. of State: Cyrus Vance • Carter Doctrine: Any country attempting to take the Persian Gulf would be repelled by any force necessary (note: NOT about containment)

4. Carter’s Successes • Camp David Accords: Brought a measure of peace to the Middle East • Won Carter the Nobel Peace Prize • Begin (Israel) returned territory to Egypt • Sadat (Egypt) gave recognition to Israel and was assassinated when he returned home

5. Carter • Established formal diplomatic relations with China (Deng Xiaoping) Mao gone since 1976 • Panama Canal Treaty: To return canal to Panama (most of our ships getting too big anyway) BUT big objections by the New Right • Worked on SALT II with Soviets (Brezhnev)

6. Carter: Economic Problems • Highest interest rates in U.S. history (20%) • Unemployment • Inflation soared (up 14%)..much due to OPEC and increased energy costs • 1979 Accident at Three Mile Island: 100,000 evacuated. Radioactive cloud released!

7. 1979 Afghanistan • 1979 Soviets invaded Afghanistan • Carter saw it as a violation of Human Rights • U.S. boycotted the 1980 Moscow Olympics • Many Americans VERY angry

8. The Hostage Crisis • Remember in the 50’s… • The U.S. Placed the Shah of Iran in Power • He modernized and westernized and earned the hatred of his people • 1979…a revolution in Iran • The Shah was ousted • The Ayatollah Khomeini took power • The Shah and his family fled to Mexico

9. The Hostage Crisis • In Mexico, the Shah was diagnosed with cancer • He wanted to come to the U.S. for treatment • Carter said OK • The Ayatollah demanded that the U.S. turn over the Shah • Carter refused • Nov 4, 1979 The U.S. embassy in Tehran took U.S. diplomats (53) hostage for 444 days

10. The Hostage Crisis • Attempted rescue was a disaster • Carter froze all Iranian assets in the U.S. • The hostages were released when Reagan was inaugurated • Though one of Carter’s last acts as President was to unfreeze Iranian assets. (They needed the $ for their war with Iraq: The Persian Gulf War 1980-1988)

11. Rise of the New Right • A new conservatism in California, Texas, California • Wanted to downsize the government • Sagebrush Rebellion: Opposed to environmentalism and conservation laws • Born-again Christian televangelists: Billy Graham, Oral Roberts, Jerry Falwell

12. The New Right • New Religions: Church of Scientology, Unification Church, People’s Temple • Pro: Prayer in School, traditional families • Denounced: abortion, divorce, feminism, homosexuality • The Sunbelt and the South resented liberalism and government restrictions

13. The Tax Revolt • 1978 in California: Howard Jarvis: referendum to roll back property tax rates (a limit on property taxes) • Attacking taxes = attacking government programs, SCHOOL FUNDING

14. Election 1980 • Republicans: Reagan (the New Right) 489 • Democrats: Carter 49 • Opposition to the Panama Canal Treaty contributed to Reagan’s popularity • Laissez-Faire • 1981 assassination attempt (Pope too)

15. Reaganomics • Also called Supply-side economics: tax cuts to the wealthy (hopefully they would spend what was not going to pay taxes to stimulate the economy) • Was called VOODOO economics by VP George Bush…later

16. The Economy • Drastic budget cuts • Gold drain (too many imports; not enough exports) • Deregulation of environmental agencies, Civil Rights Division of the Justice Department, SEC • Believed that getting rid of big government would speed economic revival

17. The Economy • 1982 Severe recession • Federal Reserve Board high interest rates • Raised the value of the Dollar • 11% unemployment • Some recovery after 1982 BUT • Reagan promised a balanced budget BUT • 1980 $907 Billion in debt; 1991 $3.5 Trillion!

18. Economics • Reaction to debt: cut programs to the poor • Major increase in Social Security taxes • NOTE: inflation NOT a problem during Reagan years • Big military spending • Cold war tensions heightened • Star Wars (SDI) Strategic Defense Initiative: too expensive; congress did not pass

19. Reagan Doctrine: • To oppose communism anywhere in the world whether it was associated with the Soviets or not • Troops and help to groups opposing communism and Marxism in L.A. • Global movement to nuclear freeze. 1982 one million demonstrated in Central Park

20. Iran-Contra Scandal • In Iran the Ayatollah Khomeini was calling on Muslims of the Middle East to overthrow their government and establish theocracies • 1979 Saddam Hussein rose to power in Iraq. He went to war with Iran for the sake of all Muslim governments in the Middle East and because Khomeini provided the Kurds with weapons to use against Iraq

21. The Persian Gulf War 1980-88 • Many Middle Eastern countries loaned or gave money to Iraq • The U.S. Supported Iraq (publically) as we considered Hussein to be the lesser of the 2 evils • U.S. was really concerned with maintaining a balance of power in the Middle East…avoid the emergence of a superpower

22. In the meantime • In Nicaragua, a Marxist regime led by the Sandinistas had taken power • The Contras (who Reagan called Freedom Fighter) were fighting the Sandinistas • The U.S> was sending aid to the Contras • THEN the American press reported that the Contras were committing more atrocities on the population than the Sandinistas

23. The Contras • The American People made it clear we did not want to aid rapists, murderers • The Boland Amendment (congress): The U.S. would not give military aid to the Contras • This frustrated Reagan and SOMEONE in his administration began to sell weapons to Iran (so they could fight Iraq!) and funnel the $ to the Contras secretly = • The Iran-Contra Scandal

24. The Teflon President • Reagan denied knowledge • Charges never stuck to Reagan (Teflon) • Lt. Oliver North took the blame • BUT Saddam Hussein KNEW that U.S. weapons were being used against him. • The Persian Gulf War ended with no winner. • Both Iran and Iraq were exhausted.

25. Election 1984 • Republicans: Reagan (Bush) 525 • Democrats: Mondale (Ferraro) 13 (first woman VP candidate for a major party) • NOTE: Reagan named first woman to the Supreme Court: Sandra Day O’Connor

26. The End of the Soviet Union • Gorbachev Berlin Wall Down • Glasnost: a new openness (freedom of speech, etc) • Peristroika: economic reform (did not work out) • 1989 Eastern European nations to independence • By 1991 the Soviet Union broke apart

27. Savings and Loan Scandal • Deregulation = collapse of Savings and Loan • Also largest single day drop in stock market in history • Sec. of Labor indicted for racketeering • Others resigned: questionable transactions • HUD mususe of funds • Over 100 members of the Reagan administration found guilty of wrongdoing (unethical or illegal behavior)

28. Election of 1988 • Republicans: George Bush 426 • Democrats: Dukakis 112 • Bush was elected largely due to Reagan’s success in promoting conservatism over liberalism • Bush Big on Drug Problem: Just say no

29. Operation Just Cause in Panama • Went after drug kingpin Noreiga..only killed 3,000 Panamanians to do it • Desert Storm: After Gulf War, Saddam Hussein broke • Went to the Middle Eastern countries who had loaned him $ and asked for the dbts to be forgiven…most did…not Kuwait (very wealthy)

30. The Gulf War • Hussein went home to sell oil so he could pay his debts. • Kuwait flooded the marked with oil and drove down the price • Made it impossible for Hussein • So Hussein attacked Kuwait

31. The Gulf War • The UN and U.S. Gave Hussein a deadline for getting out of Kuwait • Desert Shield: the Saudis asked for help just in case • Hussein ignored deadline • UN attacked (really U.S. (mostly) and other international troops)

32. The Gulf War • Hussein left Kuwait setting oil fields on fire on the way out…ecological disaster • War was quick…18 hours huge success • Iraqi losses: 70,000 • U.S. losses: 150

33. Bush very popular • The war a great success • THEN Severe recession 1991 • Lost popularity allowing Clinton to win in 1992 • BUSH: a thousand points of light: to inspire volunteerism • BUSH: Read my lips (said that he would not raise taxes but he did)

34. Clinton • Whitewater • NAFTA • Oslo Accords