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Chapter 32 Conservatism Revived, 1980–1992

Chapter 32 Conservatism Revived, 1980–1992. Ch. 32: Conservatism Revived, 1981–1993. Time of change in race/ethnicity: most new immigrants = people of color Gap between rich and poor widen Reagan supported by religious New Right Implement political/economic conservatism:

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Chapter 32 Conservatism Revived, 1980–1992

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  1. Chapter 32 Conservatism Revived, 1980–1992

  2. Ch. 32: Conservatism Revived, 1981–1993 • Time of change in race/ethnicity: • most new immigrants = people of color • Gap between rich and poor widen • Reagan supported by religious New Right • Implement political/economic conservatism: • result = massive deficits • Cold War tensions accelerate, then decline • USA remain active as sole superpower • esp. Middle East

  3. Ronald Reagan 1980-1988

  4. Reagan • Former New Deal Democrat turned conservative Republican – former Hollywood actor.

  5. Support came from the New Right, or Moral Majority – Fundamentalist Christians.

  6. Fig. 32-CO, p. 886

  7. I. Conservative Resurgence • 1970s dispirit many: • permit challenges to liberalism • By mid-1960s, Reagan: • leader in emerging conservative movement • Claim Great Society and “big government”: • = threats to liberty • 1980 campaign: • unite different types of conservatives

  8. II. The New Conservative Coalition • Political conservatives: • more defense spending • roll back New Deal/Great Society • Economic conservatives: • pro-business policies • deregulation, corporation/wealthy tax cuts • Reagan tap into tax revolt of 1970s: • gain support of white “Reagan Democrats” • Social conservatives = religious New Right: • restore “God’s America”/“family values”

  9. III. Reagan’s Conservative Agenda • Win 51% of vote • Begin era of Republican rule (1981 to ‘93) • Set overall agenda • Not active on daily issues • Effective communicator with simple stories • Reject liberalism: • USG active in economy and social welfare • Discount ability of USG to solve poverty • Tap white backlash (“welfare queen” story)

  10. III. Reagan’s Conservative Agenda (cont.) • Cut $25 billion from AFDC/ food stamps, ’81 • Face resistance to cuts in: • Social Security and Medicare • because benefit all Americans • To spur corporate profits, weaken: • environmental/health/safety regulations • Use USG to aid corporations: • Watt allow access to USG lands • reenergize environmental protest

  11. p. 891

  12. IV. Organized Labor;The New Right • Unions suffer because: • Reagan support management over labor • deindustrialization weaken unions • In 1980, campaign on “family values”: • support school prayer • oppose legal abortions • Make judiciary more conservative: • Court allow abortion restrictions (Webster, ‘89)

  13. V. “Reaganomics” • Simple answer to complex problem: • claim liberal policies cause stagflation • Embrace “supply-side” economics: • tax cuts for corporations and rich • will stimulate growth by • more investment/businesses/jobs • economic growth will balance budget • Massive tax cut ($750 billion): • “trickle down” theory

  14. V. “Reaganomics” (cont.) • Greatly expand defense spending • Result = huge deficits • Triple national debt to $2.9 trillion • 1992: budget deficit = 5 times 1980 amount • Transform USA (Figure 32.1): • world’s largest creditor to largest debtor

  15. Reagan increased defense spending but failed to win huge cuts in government spending in other areas. • This caused the federal deficit, or the shortfall between the amount of money spent and the amount of money taken in by the government, to skyrocket from about $79 billion in 1981 to more than $221 billion in 1986. • The national debt, the amount of money the federal government owes to owners of government bonds.

  16. Fig. 32-1, p. 894

  17. p. 895

  18. VI. Harsh Medicine for Inflation • Fed hike interest rates to 21.5%: • slow economy to halt inflation • In recession of 1981–82, unemployment: • highest level (10.8%) since 1940 • Heavy industry and agriculture in shambles • Poverty increase • By 1982, inflation drop: • Fed action • OPEC increase production to lower prices

  19. VII. 1984 Election; Deregulation • Reelection helped by: • economic growth by 1984 • drop in unemployment • Mondale worry about deficits and poverty • Reagan vastly expand deregulation: • cut SEC enforcement and regulation of Savings and Loans • result = wave of risky investments/ fraud • corruption in Savings and Loans cost taxpayers ½ trillion • Junk bonds accelerate “merger mania” • Economy grow, but: • many layoffs and big debt

  20. VIII. The Rich Get Richer • Bigger gap between rich and poor • Figure 32.2: • richest 1% gain 77% • bottom 40% get poorer • Massive increase in CEO salaries • Middle-class incomes stagnant • 1990: top 20% control 80% of wealth • Reagan increase tax rates for poor by 16%

  21. Fig. 32-2, p. 896

  22. IX. Reagan and the World;Soviet-American Tension • Promise more vigorous Cold War • A traditional Cold Warrior: • “evil empire” source of problems • USA can shape world • reject détente and human rights focus of 1970s • Largest peacetime buildup: • double military budget (1980 to 1985) • Spend billions more on SDI (1983): • assume build up and SDI will intimidate USSR

  23. Reagan Builds Up the U.S. Military

  24. X. Reagan Doctrine (1985) • View 3rd World via Cold War lens • Open help to anti-communist fighters to topple governments • Escalate aid to Mujahidin in Afghanistan • El Salvador: • rebels challenge • military government and its death squads • Reagan send $6 billion to government • civil war last till 1992

  25. Map 32-1, p. 898

  26. XI. Contra War in Nicaragua • Sandinistas (leftist nationalists): • topple pro-US dictator Somoza (1979) • want to reduce US influence in Nicaragua • Reagan’s CIA form contras in 1981 • Destructive civil war develop (30,000 die) • Reagan see Central America via Cold War • Critics downplay communist threat: • fear Vietnam repeat • Central American presidents end war (‘90)

  27. XII. Iran-Contra Scandal;South Africa • Breaks, 1986: • 1984, Congress ban funding to contras • Reagan authorize secret funding from others • illegal weapon sales to Iran also fund contras • destroy documents • lie to Congress • reduce Reagan’s popularity • Bush pardon those convicted, 1992 • Public pressure and Congress force Reagan: • accept sanctions on South Africa (1986)

  28. XIII. US Interests in the Middle East • Oil/ Israel/ blocking USSR • Growing Islamic fundamentalism • Israeli-PLO violence: • undermine peace hopes • Israel invade Lebanon (1982): • Reagan send Marines in • withdraw after 1983 bombing • Anti-Israel and anti-USA terrorism increase • Palestinian intifada start, 1987

  29. p. 899

  30. During the 1980’s, the US often clashed with Libya. Led by Muammar al-Qaddafi, whom Reagan described as “the mad dog of the Middle East,” Libya supported terrorist groups. After a bombing of a Berlin nightclub, which Reagan blamed on Qaddafi, US warplanes bombed Libya, killing one of Qaddafi’s daughters. Even though Qaddafi was unharmed, his criticism of the US dwindled. XIII. Trouble Persists in the Middle East

  31. XIV. Gorbachev, post-1985 • Reformers want to improve economy: • need to cut military spending • Reagan respond (Iran-Contra scandal) • Meetings reduce tension • 1987 INF Treaty: • ban some European missiles • Gorbachev act unilaterally to: • reduce military • withdraw from Afghanistan

  32. XVI. “Culture Wars” • Religious Right spark opposition: • People for the American Way (1982) • separation of church and state • religious freedom • stress tolerance and diversity • Women’s Rights Movement open new opportunities for women in ed and economy • New Right oppose feminism: • patriarchal families • block ERA

  33. XV. A Polarized People, 1980s; Religious Right • Social divisions deepen • Fundamentalist Christianity grow • Some enter politics: • Falwell (Moral Majority, 1979) • fight secularism • base society and public ed on “God’s law” • challenge teaching of evolution

  34. p. 902

  35. XVII. The New Inequality • Suburban whites/urban people of color gap • Most poor white • People of color = disproportionate share • Figure 32.3 on poverty (1980): • 10% of whites • 26% of Hispanics • 33% of blacks • Factors: • deindustrialization • racism

  36. Fig. 32-3, p. 904

  37. XVIII. Social Crises in American Cities • Child poverty grow: • esp. single-parent homes • 1990: 25% of children in homes without fathers • almost 50% of black children poor (1992) • Increasing inequality link with growing: • crime • drug abuse • homelessness • AIDS partly byproduct of drug crisis: • USG respond slowly

  38. XIX. New Immigrants from Asia • 1970–90: more than 13 million immigrants • Big increase in Asian immigration • 3 times to 3% of population by 1990 • Shift to South and Southeast Asia • Many skilled (Koreans and Indians) • Others unskilled (work in textiles)

  39. XX. Growing Latino Population • Fastest growing minority (1970–90): • immigration • high birth rate • 1990: 9% of population • Mexican Americans in southwest • Caribbean Hispanics on East Coast • Many legal and illegal immigrants because of: • poverty, civil war, repression • Luisa Orellana • Ethnic/ racial/ cultural diversity grow

  40. XX. Growing Latino Population (cont.) • So many plus economic change cause: • tension/violence toward newcomers • call for restriction • Immigration Reform and Control Act (1986): • seek to reduce illegal immigration • fine those who hire undocumented aliens • amnesty to illegal immigrants who arrive before 1982

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