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Reagan in Power

Reagan in Power. Roosevelt coalition continues to splinter Vietnam Civil Rights (Democrats lose Deep South) Republican party picks up pieces. THE REPUBLICAN RESURGENCE, 1980-1992. America: Past and Present Chapter 32. The Reagan Victory 1980. Carter’s negatives Iranian hostage crisis

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Reagan in Power

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  1. Reagan in Power • Roosevelt coalition continues to splinter • Vietnam • Civil Rights (Democrats lose Deep South) • Republican party picks up pieces

  2. THE REPUBLICAN RESURGENCE, 1980-1992 America: Past and Present Chapter 32

  3. The Reagan Victory 1980 • Carter’s negatives • Iranian hostage crisis • economic ills • Reagan’s positives win the election • warm telegenic personality • optimistic message • draws Jewish, working class vote • Republicans win majority in the Senate

  4. Cutting Spending and Taxes • Reagan’s premise: cut spending to encourage private investment • Reagan cuts over three years • federal spending by more than $40 billion • social services included in cuts • taxes cut by 25%

  5. Limiting the Role of Government • Environmental regulations relaxed • Attempted cuts in Social Security • Neglect of interest-group opponents • labor hurt in air traffic control firings • lack of support for civil rights legislation • women ignored in judicial appointments

  6. Reaganomics • Reagan’s reductions in spending and taxes prompt conflicting expectations • Supply-side economists expect economic growth • Reagan’s critics expect massive deficits, economic stagnation

  7. Recession and Recovery • 1981-1982--unemployment hits 10% • 1983--economic recovery • rise in consumer spending • prices remain level • worldwide decline in energy prices

  8. The Growing Deficit • Basis for the Reagan hopes for prosperity includes • massive deficit spending • massive inflows of foreign investment • 1983--federal budget deficit $200 billion • Spending caps on defense, services • 1985--U.S. becomes a debtor nation

  9. U.S. Budget Deficits, 1980-1997

  10. The Rich Grow Richer • Gains of Reaganomics • inflation reduced to 4% • employment grows after 1982 • growth in service sector jobs Losses of Reaganomics • high-paying manufacturing jobs decline • increasing social inequality • wealthy benefit • poor left in poverty • middle class hurt

  11. Share of Aggregate Household Income by Quintiles, 1975-1995

  12. Reagan Affirmed • Perception of improving economy • 1984 election • Reagan trounces Walter Mondale • Republicans lose seats in Congress

  13. Reagan and the World • Reagan determined to restore America's international position • Steep increase in military spending • Aggressive foreign policy

  14. Challenging the "Evil Empire" • Reagan: Soviet Union the "focus of evil in the modern world" • Unfavorable deals on arms reductions • U.S. response to Russian refusal • deployment of cruise missiles in Europe • development of anti-missile system • SDI – Strategic Defense Initiative - “Star Wars” • Russians build up nuclear arsenal

  15. Turmoil in the Middle East • 1982--Israeli invasion of Lebanon • International response • U.S., France send troops to maintain order • PLO evacuates Beirut • 1984--200 U.S. Marines killed in terrorist bombing in Beirut • U.S. evacuation of Lebanon

  16. Trouble Spots in the Middle East

  17. Confrontation in Central America • Intervention against Latin American leftist insurgents • Covert subversion of Sandinistas • October, 1983--invasion of Grenada

  18. Trouble Spots in Central America and the Caribbean

  19. Trading Arms for Hostages • Advanced weapons sold to Iran for influence in freeing American hostages • November, 1986--Iran-Contra scandal • profit from Iran arms sales to Contras • funding violates Congressional prohibition against trading with Iran!! • Reagan escapes impeachment • Col. Oliver North takes “the heat”

  20. Reagan the Peacemaker • 1985--Mikhail Gorbachev assumes power in Russia • 1985-88--Reagan-Gorbachev summits • 1987--destroy intermediate range missiles • 1988--Afghanistan evacuated • Foreign policy triumphs restore Reagan’s popularity

  21. Social Dilemmas • AIDS epidemic • Drug abuse

  22. The AIDS Epidemic • 1981--AIDS first detected • apparent confinement to homosexual men results in early public inaction • spread to drug users, recipients of blood transfusions prompts panic • Reagan Administration’s response • fund research • little funding for education, prevention • 1987--appointment of AIDS commissioner

  23. The AIDS Epidemic (2) • 1996--500,000 infected • majority homosexuals, drug users • 15% heterosexual, non-drug abusers • 1996--AIDS death rate begins dropping • new drugs • safer sexual practices

  24. The War on Drugs • Mid-1980's--crack cocaine introduced • addiction spread through all classes • exploding crime rate • Reagan attempts interdiction of supply • (H.W.Bush , Clinton continue Reagan policy) • At the end of the century there seemed to be no end to the war on drugs

  25. The Changing Palace Guard • 1985--Donald Regan chief of staff • Second-term victories • tax reform package • appointment of conservatives • Changes in the Supreme Court • Senate blocks Bork appointment to Court • Bush appointments help turn the Court more to the right

  26. Passing the Torch to Bush (H.W.) • Republicans hope for major political realignment • Factors reinforcing trend • 1980s economic boom • promise of the end of the Cold War

  27. The Election of 1988 • Republican George Bush • Democrat Michael Dukakis • Bush television ads attack Dukakis as soft on crime, unpatriotic • Bush wins White House • Republicans lose seats in Congress

  28. Bush’s Domestic Agenda • Problems of 1989 • savings and loan industry facing collapse • ballooning federal deficit • Bush’s deficit reduction • raise taxes (had promised otherwise) • cut military expenditures • Economic recession increases deficit

  29. The End of the Cold War • June, 1989--Tiananmen Square • November, 1989--Berlin Wall torn down • 1991-1992--U.S.S.R. dissolved, Communist Party outlawed in Russian Republic • Cautious response by Bush

  30. The End of the Cold War

  31. Waging Peace • 1989--U.S. invasion of Panama • August, 1990--Iraq occupies Kuwait • January, 1991--Operation Desert Storm • Outcome of Desert Storm • February 24--Iraqi force collapses • Bush’s approval hits 90%

  32. Republican Economic Woes • 1990 budget deal violated Bush’s “no new taxes” pledge • Also failed to reduce budget deficits • Economic recession prolonged • One term president…relatively unknown Gov. of Arkansas, William Jefferson Clinton will win in 1992.

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