Legacy of Reaganomics: Economic Triumphs and Global Complexities

1. RAH Day 31 Enduring Understanding(s) • Reagan’s domestic policies led towards a prosperous economy at the immediate expense of the poor, the environment, and minorities. • Reagan’s foreign policy, based upon increasing the United States military strength, helped to eventually lessen tensions of the Cold War at the expense of devaluing American ideals abroad. Essential Questions • Explain the impact Reaganomics and deregulation had different sectors of society including the poor, the environment, and business • Describe how and why tensions between the USSR and US changed during the course of the Reagan Administration. • Explain the paradox of Reagan desiring to spread American ideals while supporting dictators in Latin America using specific examples

2. Unit 4 Test Review • Questions 1, 21, and 25 are not counted • If you got them right, they are “bonus” • So, in effect, the test is now out of 94 points • At the top of your test sheet you have your Multiple choice score (out of 54) and your short answer score (out of 40). These scores add together for your raw score (out of 94) • We are going to review the multiple choice as a class

3. Reaganomics Policy Tax Cuts • Income tax cuts mostly for the rich and for businesses Reduce Gov’t Spending • Cut social programs that benefited the poor, $41 billion Tight Monetary Policy • Limited amount of money in the economy through federal reserve Results • Reduced top level of income tax from 70% to 30% over course of his time in office, but tax rates for most Americans stayed mostly level • Cut programs like food stamps/housing assistance/Medicaid but kept Social Security and Medicare • Inflation lowered but also slowed economic growth until 1983 (when U.S. became prosperous again)

4. $$$ - welfare, jobs, housing subsidies, food stamps Goods/services Goods/services $ $ $ Supply-Side economics = Reaganomics • Cut gov’t spending, especially entitlement programs • Cut taxes, especially on businesses and the wealthy • Simplify the depreciation schedule • Cut business regulations including environmental enforcement • Improve monetary policy • Promote confidence in the US • Cut and limit government activity related to business Keynesian policy Government Producer/supplier of goods and services Consumer of goods and services $ $ $

5. Government Goods/services Goods/services Business tax cuts, investment tax cuts, deregulation, lower interest rates Trickle $ $ $ Down $ $ $ Supply-Side economics = Reaganomics • Cut gov’t spending, especially entitlement programs • Cut taxes, especially on businesses and the wealthy • Simplify the depreciation schedule • Cut business regulations including environmental enforcement • Improve monetary policy • Promote confidence in the US • Cut and limit government activity related to business Supply side policy Producer/supplier of goods and services Consumer of goods and services $ $ $

6. Reagan’s Domestic Policies • Complete the rest of Domestic Policy G.O. (pg. 2 of packet) • Work together with table groups • Use pgs. 342-346 of textbook • Answer EQ1: Explain the impact Reaganomics and deregulation had different sectors of society including the poor, the environment, and business

7. Essential Question 1 • Poor: Cut programs to help poor, gap between rich and poor grew bigger, some argue that status of poor improved. • Environment: Used national parks for resources, limited conservation, eventually led to public outcry and the firing of Secretary of Interior James Watt • Business: Allowed risky business practices that led to a government bailout: Sound familiar?

8. Comparing Quintiles Mean family income in current 2005 $ – US Census - CPS

9. Reagan’s Foreign Policy Goals • Promote American ideals abroad • Stop Communism anywhere and everywhere • Strong U.S. military • Most expensive peacetime build-up in U.S. history • Protect U.S. interests and help anyone stop communism (human rights not an issue)

10. Foreign Policy G.O. Group 1: Cold War + Arms Build-Up pg. 350-352 Group 2: Cold War + Gorbachev pg. 352-353 Group 3: El Salvador, Grenada pg. 355-356 Group 4: Nicaragua pg. 356-357 Group 5: Middle East Terrorism pg. 356-357

11. EQ 2: Describe how and why tensions between the USSR and US changed during the course of the Reagan Administration. EQ3: Explain the paradox of Reagan desiring to spread American ideals while supporting dictators in Latin America using specific examples

12. EQ 2: Describe how and why tensions between the USSR and US changed during the course of the Reagan Administration. -At first, strong stance against USSR, “evil empire” military build-up, more arms, SDI -By 1984, relations improved, Gorbachev: Glasnost (openness) and perestroika (restructuring) EQ3: Explain the paradox of Reagan desiring to spread American ideals while supporting dictators in Latin America using specific examples

13. Guatemala • General Efrain Rios Montt Regime lasted from March 1982-August 1983 • Deadliest period of violence in entire Guatemalan civil war • Enjoyed the support of United States • “Protected” Guatemala from communism by bringing destruction upon the rural people of Guatemala, the majority Maya Indians, in order to eliminate communist guerillas • Historical Clarification Committee: Considered Genocide beyond any doubt

15. Rios Montt came to power through a coup d’état supported by the CIA • Ronald Reagan restored U.S. funding for military operations against communists in Guatemala • Reagan: “President Ríos Montt is a man of great personal integrity and commitment. ... I know he wants to improve the quality of life for all Guatemalans and to promote social justice.”

16. Guatemalan Historical Clarification Committee: “In the majority of massacres there is evidence of multiple acts of savagery, which preceded, accompanied or occurred after the deaths of the victims. Acts such as the killing of defenseless children, often by beating them against walls or throwing them alive into pits where the corpses of adults were later thrown; the amputation of limbs; the impaling of victims; the killing of persons by covering them in petrol and burning them alive; the extraction, in the presence of others, of the viscera of victims who were still alive; the confinement of people who had been mortally tortured, in agony for days; the opening of the wombs of pregnant women, and other similarly atrocious acts....”

17. How could the U.S. support regimes like this? Consider this quote: “The answer to that question begins with a basic intellectual approach which views foreign policy as a lifeless, bloodless set of abstractions. "Nations," "interests," "influence," "prestige"—all are disembodied and dehumanized terms which encourage easy inattention to the real people whose lives our decisions affect or even end.”