As the 1980 presidential election approached, why was America a nation ready for change?

1. Low Spirits People lacked confidence in government. The turbulent 1960s, Watergate, the Soviet invasion of Afghanistan, the Iranian hostage crisis, and long gasoline lines put Americans in an uneasy mood. Critics said Carter blamed Americans for the “crisis in confidence” instead of fixing the problems. A conservative movement that opposed liberal social and racial policies was growing. The 1980 Election Reagan promised to return the country to a simpler time of low taxes, smaller government, a strong military, and conservative moral values. Focused on “family, work, neighborhood, peace, and freedom.” Reagan asked if people were better off than they were four years ago. Reagan and his running mate, George H.W. Bush, won in a landslide; Republicans also gained control of the Senate. As the 1980 presidential election approached, why was America a nation ready for change?

3. The New Right The New Right was a coalition of conservative media commentators, think tanks, and grassroots Christian groups. The New Right endorsed school prayer, deregulation, lower taxes, a smaller government, a stronger military, and the teaching of a Bible-based account of human creation. They opposed gun control, abortion, homosexual rights, school busing, the Equal Rights Amendment, affirmative action, and nuclear disarmament. Reagan gave the New Right an eloquent and persuasive voice and he drew many Americans to his side. Reagan’s Allies • The New Right grew in influence = televangelism. • One leader, Rev. Jerry Falwell founded a political activist organization called the Moral Majority in 1979. The New Right • Reagan became known as the “Great Communicator” • As president, Reagan was called the Great Persuader A Powerful Personality • Reagan’s wife, Nancy Reagan, was one of his greatest allies. She ran the White House, advised her husband, and fiercely protected his interests. Nancy Reagan

4. Reagan’s Presidential Agenda • Reduce the federal bureaucracy, deregulate certain industries, cut taxes, increase the defense budget, take a hard line with the Soviets, and appoint conservative judges • In his first few months as president, Reagan got much of what he wanted. • Image grew stronger as he survived an assassination attempt • Proved himself capable of decisive action when he fired 13,000 striking air traffic controllers

5. Supply-side Economics Tax cuts and business incentives stimulate investment. Investment encourages economic growth. A growing economy results in more goods and services. Theory appealed to conservatives who supported free enterprise and minimal government regulation. “Trickle down” to the common people. David A. Stockman Reagan appointed this controversial young budget director to implement his economic plan. Stockman asked Congress for tax cuts. Tax cuts would stimulate businesses who would pay more taxes and eliminate any budget deficit. Congress passed many of the main components of Reaganomics. Reagan’s Economic Plan

6. The Effects of Reaganomics • Claimed the tax breaks simply made the rich richer, said wealth did not “trickle down” to the working class • Said that tax cuts combined with increased military spending would drive the federal deficit higher Critics of Reaganomics • Vice President Bush had questioned plan to cut taxes and increase military budget during the Republican nomination race, calling Reagan’s plan “voodoo economics.” “Voodoo Economics” • During 1981 and 1982 the nation suffered the worst recession since the Great Depression. • Unemployment rose and government revenues fell. • Federal spending soared and the federal deficit skyrocketed. Recession and Recovery

7. President Reagan and the Cold War • In his first term, Reagan rejected the policies of containment and détente; he wanted to destroy communism. • Position worsened relations with the Soviets • Forged bonds with like-minded leaders, including Margaret Thatcher and Pope John Paul II • Critics of his policy called Reagan reckless • Reagan obtained massive increases in military spending. • Much of the new spending went to nuclear weapons. • Promoted the Strategic Defense initiative (SDI)—a shield in space to protect the United States against incoming Soviet missiles. • Critics called this Star Wars and said it wouldn’t work.

8. The Soviet Union By the late 1970s the Soviet economy was shrinking. Industrial and farm production, population growth, education, and medical care all fell. The Soviet Union started importing food Strikes in Poland led by Lech Walesa highlighted Soviet weaknesses. Walesa successfully forced the Soviet-backed government to legalize independent trade unions. He also led a new independent union called Solidarity. U.S.-Soviet Relations A visionary leader came to power in the Soviet Union—Mikhail Gorbachev. Believed the only way to save the Soviet Union was to strike a deal with the United States Between 1985 and 1988 Reagan and Gorbachev met four times and produced the Intermediate-Range Nuclear Forces (INF) Treaty. First treaty to actually reduce nuclear arms INF Treaty destroyed a whole class of weapons (more than 2,500 missiles). A Thaw in the Cold War

10. Upheaval in Latin America • Violent civil war between Marxist guerrillas and government troops supported by armed extremist groups • Reagan administration supported José Napoleón Duarte —a moderate leader who won the 1984 election. El Salvador • U.S-backed Anastasio Somoza Debayle was ousted by the Sandinistas—a Marxist group. • Reagan cut off aid to Nicaragua saying that the Sandinistas were backed by the USSR. • Reagan then allowed the CIA to equip and train a Sandinista opposition group called the Contras. • Congress cut off funds to the Contras and banned all further direct or indirect U.S. support of them. Nicaragua

11. Trouble Spots Abroad • Lebanon • Muslim and Christian groups waged a civil war. • Israel invaded Lebanon to expel the PLO. • U.S. sent 800 peacekeepers. • A suicide bomber killed 241 marines. • Reagan withdrew the troops. • Grenada • 1983 Communist coup stranded 800 U.S. students. • Cuba’s role and students’ safety concerned Reagan. • Reagan sent in soldiers who took the island in two days with a loss of 19 soldiers. • South Africa • Apartheid enforced legalized racial segregation. • Reagan’s policy was one of “constructive engagement” with the white minority government. • Congress overrode his veto and imposed trade limits and other sanctions.

12. The Iran-Contra Affair • Despite the Congressional ban on U.S. funds for the Contras war, Reagan’s national security staff sought to continue the funding. • In 1985 National Security Advisor Robert McFarlane persuaded Reagan to sell arms to Iran in hopes that Iran would help obtain the release of U.S. hostages in Lebanon. -- This violated a U.S. arms embargo! • Members of the National Security Council staff then secretly diverted the money from the sale of arms to Iran to the Contras in Nicaragua. • Vice Admiral John Poindexter and Lieutenant Colonel Oliver North carried out the plan to divert arms sale money to the Contras. • When the Iran-Contra affair came to light, Congress wanted to know if anyone higher up was involved. -- Reagan admitted authorizing the sale of arms to Iran but denied knowing that the money was then diverted to the Contras. • Full details of the affair are not known because the administration engaged in a cover-up of their actions. • North admitted destroying key documents. • High-level Reagan staff members lied in testimony to Congress and withheld evidence. • North was convicted of destroying documents and perjury. His conviction was overturned on technicalities.