The Reagan Era: Conservative Ascendancy and Reagan Revolution

1. Topic 28 The Reagan Era www.buschistory.netThe Conservative Ascendancy • Reagan – Bush 1981-1993

2. The Reagan Revolution *Following the stagflation of the Carter Years, the election of Reagan was a feel good victory for America *Reagan came into office as an Idealist -America was the best country on Earth -The USSR constituted an “Empire of Evil” -“Government it not the solution to our problem; government is the problem” http://www.youtube.com/watch?v=X39dGQmBEww

3. Economic Salvation *The Keynesianism of gov’t policy since JFK had lead to Stagflation *Reagan Cut taxes, in astronomical proportions and tax incomes doubled *Cut domestic Spending *Cracked down on unions *Broke the PATCO strike *Deregulated business *Raised interest rates to strangle inflation *After a brief (but harsh) recession, The economy recovered and underwent the greatest expansion of American History

4. Military Buildup *Sought to Restore American military capacity *Decided To overpower USSR through military spending *Increased Military arsenal, both nuclear and non-nuclear *Proposed Strategic Defense Initiative -Largely criticized by Americans -Scared the Soviets -Realized they couldn’t compete (Soviet military spending reached 80% economic output) *Gennady Gerasimov, the former top spokesman for the Soviet Foreign Ministry, ruefully acknowledged, “Reagan bolstered the U.S. military might to ruin the Soviet economy, and he achieved his goal.  Reagan’s SDI was a very successful blackmail.  The Soviet Union tried to keep up pace with the American military buildup, but the Soviet couldn’t endure such competition.”

5. Recession  Growth *To control Inflation – raised Federal overnight funds rate (as high as 21%) *Economy underwent harsh shrinkage *Cut Taxes in astronomical proportions *Slashed Federal domestic spending *Economy Underwent record growth *13 million new jobs created ’81 – ’86 *National debt increased *America (and Americans) became more wealthy than ever before been in history

6. Reagan Foreign Policy *”America is the strongest, greatest, most righteous country in the world” and he was out to prove it * “Peace through Strength” *Reagan was determined to outspend and overpower the Soviet Union *New Missiles in Midwest, new missiles in Europe, New B-1 bombers *Communism was “destined for the ash heap of history” *US would intervene to Stop spread of Communism *Reagan Corollary – Pro-communist Social revolution anywhere in the world was Soviet Backed and must be stopped *Communist Rebels were suppressed in El Salvador, Grenada and Nicaragua, both through direct intervention and support of anti-communist forces *Leveled and debilitated Military sponsoring of Terrorism in Lebanon

7. Soviet Changes *Leonid Brezhnev, Premier since 1964, died in 1982 *Two successors die quickly (Andropov and Chernenko) *Mikhail Gorbachev is apointed General Secretary – First Soviet leader to have not lived through the Revolution *Enacted reforms in Soviet Union *Glasnost – (openness) – increasing political freedom, approaching free speech *Perestroika – (restructuring) – Remodeling of Soviet economy, allowed private ownership of land (private farms, less than 10% of Soviet farmland produced in excess of 60% of Soviet crops) http://www.youtube.com/watch?v=WjWDrTXMgF8

8. Reagan Domestic *Unable to cut domestic programs (i.e. Medicare/Social Security/Welfare) as much as desired because of resistant Democratic Congress *Led to record deficits despite nearly doubled tax revenues (1981-1986) *America’s growing prosperity led to dissension as the unequal accumulation of wealth increased in scope. *AIDs began to spread in America *Drug usage, especially of illegally imported narcotics (such as cocaine) grew

9. George Bush 1989-1993 *Faced weak Democratic opposition in 1988 • Elected by a landslide in 1988 *Pledged “Read my lips, no new taxes” *Promised to be a continuation of Reagan policies (smaller government, strong military, low taxes) Democratic Nominee Michael Dukakis

10. And now – George Bush and theCollapse of USSR *Gorbachev heralds a new age of freedom in Eastern Europe *June 1989 Free elections held in Poland *Multiparty system emerges in Hungary *Czechoslovakia, Romania, Bulgaria force out communist regimes *1989 – protests at a celebration of the 40th anniversary of East Germany lead to the fall of the Berlin Wall when protesting crowds flood the gates *Growing dissension and upheaval in USSR - Communists leaders stage a coup d’etat to remove Gorbachev; Red Army soldiers refuse to obey, coup collapses *Gorbachev resigns as head of Party, declares the Party illegal – Boris Yeltsin, president of Russia, emerges as most significant political leader *USSR dissolves into individual republics who joined the Commowealth of Independent States

11. Operation Just Cause The Invasion of Panama • December 20, 1989-January 31, 1990 • Invasion of Panama to depose and arrest Dictator Manuel Noriega • Safeguard American lives, combat drug trafficking, defend Democracy, protect US canal interests

12. Operation Desert Storm - Iraq • January 17- February 28, 1991 • Desert Shield – August 2, 1990 Background Iraqi dictator Saddam Hussein orders an invasion of Kuwait *UN approves removal of Iraqi forces by military intervention led by US *After a devastating air bombardment the vaunted Iraqi army is defeated easily by U.S. forces *Saddam is forced to accept inspectors and agrees to disarm in part – he is allowed to remain in power

13. Recession and Defeat http://www.youtube.com/watch?v=0MW44jsYi0g *Following the tax cuts and increased military spending during Reagan’s presidency, the U.S. underwent a recession in the late ’80s. *The contraction of the economy forced President Bush to raise taxes, going against his prior pledges *Despite winning the Gulf War and capturing Manuel Noriega George Bush was defeated by Bill Clinton in a three way race in 1992