Key Events and Demographic Trends, 1981-2000

1. Key Events and Demographic Trends, 1981-2000

2. Key Economic and Political Events, 1981-2000 • A new beginning • After Reagan took the oath of office, the new President turned to face the huge crowd gathered at the West Front of the Capitol • He acknowledged that the nation faced serious economic problems • He also rejected the idea that America faced “an inevitable decline” • Instead, the new President confidently called upon America to “begin an era of national renewal”

3. Key Economic and Political Events, 1981-2000 • A new beginning • While the President delivered his Inaugural Address, a bus 6,300 miles away carried 52 American hostages onto an airport runway outside Tehran, Iran • A beaming President Reagan now told the nation the news it has waited 444 days to hear: “Some 30 minutes ago, the planes bearing our prisoners left Iranian airspace and are now free of Iran” • The President’s dramatic announcement triggered a wave of national joy and relief • Reagan’s inauguration marked a new beginning for America • The long hostage crisis had finally ended and a new presidency had begun

4. Key Economic and Political Events, 1981-2000 • Reaganomics • Upon taking office, the President told the nation, “We’re in the worst economic mess since the Great Depression” • 5 key problems to be solved • Inflation • High interest rates • Too much gov’t spending • High taxes • Unemployment • Reagan opposed the use of a New Deal-type program to revive the economy • “Government is not the solution to our problem. Government is the problem.” • Championed a series of new solutions to deal with stagflation • Called upon Congress to sharply reduce gov’t funding of social and welfare programs • Asked Congress to enact a 3-yr, 3% cut in personal income taxes • Believed that these cuts would stimulate the economy • With more money to spend, consumers would buy more goods • Also asked Congress to ease gov’t regulations of business – believed it would create jobs and promote economic growth

5. Key Economic and Political Events, 1981-2000 • Reaganomics • Reporters promptly labeled the President’s supply-side econ program Reaganomics • Critics argued that Reaganomics would hurt the needy and fail to stimulate the econ, but Reagan skillfully used TV speeches to generate support for his program • The President’s success soon earned him the nickname the “Great Communicator” • Within a few months, Congress passed Reagan’s budget and tax cuts • Reaganomics failed to produce immediate results • Econ sank into a steep recession • Unemployment climbed to over 10% – the highest since the Great Depression • Despite the difficult beginning, Reagan urged the public to “stay the course”

6. Key Economic and Political Events, 1981-2000 • Reaganomics • Reagan’s confidence proved to be justified • 1982-1988, America enjoyed a sustained period of econ growth • During that time, the econ added more than 17 million jobs, inflation dropped to single digits, and the GNP showed the biggest percentage increase in 33 years • However, Reaganomics also produced troubling long-term problems • Despite deep cuts in social programs, federal spending continued to escalate as the defense budget soared to counter the perceived Soviet threat • Because of Reagan’s massive tax cuts, the gov’t took in less money and had to borrow heavily to pay its bills • From Washington to Carter, the U.S. had accumulated $1.1 trillion in national debt • Under Reagan, the U.S. added $1.8 trillion in debt • Once the world’s biggest lender, the U.S. had become its largest debtor

8. Key Economic and Political Events, 1981-2000 • U.S.-Soviet relations, 1981-1984 • Reagan believed that the SU caused much of the world’s troubles • In his first news conference, Reagan charged that the Soviets were aggressors who “reserve unto themselves the right to commit any crime, to lie, and to cheat” • Soviet actions seemed to support Reagan’s accusations • In late 1979, the Red Army invaded AF • Events in PL further strained U.S.-Soviet relations

9. Key Economic and Political Events, 1981-2000 • Soviet actions seemed to support Reagan’s accusations • In 1980, Polish workers formed an independent labor union called Solidarity • Under the leadership of Lech Walesa, Solidarity demanded greater freedom for the Polish people • The Soviet leader refused to permit a more open Polish gov’t • In Dec 1981, C authorities in PL arrested Walesa and abolished Solidarity • The Soviet actions in AF and PL helped convince many Americans that military spending should be increased • President Reagan called upon Congress to approve a massive military buildup • Between 1980 and 1985, U.S. defense budgets increased from $144 billion to $295 billion

10. Key Economic and Political Events, 1981-2000 • The 1984 election • Reagan’s popularity rose as the 1984 election approached • Americans liked Reagan’s can-do personality and admired his ability to lead the nation • Declaring that he wanted to “make America great again,” the President told voters, “You ain’t seen nothin’ yet” • While the reps unanimously renominated Reagan and Bush, the Dems selected former VP Walter Mondale • In a bold break with tradition, Mondale chose a female running mate, Congresswoman Geraldine Ferraro of NY • The Mondale-Ferraro team ran a spirited race but proved to be no match for Reagan and Bush • Millions of voters agreed with rep ads proclaiming that “America is back, standing tall” • On election day, Reagan won a landslide victory carrying 49 states

12. Key Economic and Political Events, 1981-2000 • The Clinton presidency • The North American Free Trade Agreement (NAFTA) created a free-trade zone with CA and MX • The World Trade Organization (WTO) was established in 1984 to oversee trade agreements and enforce trade rules • The House of Reps impeached Clinton for perjury and obstruction of justice • However, the Senate did not uphold the charges

13. Three Key Demographic Trends, 1981-2000 • The “graying” of America • After reaching a peak of 4.3 million births in 1957, the baby boom began to decline • 1970-1988, an average of less than 3.5 million births occurred each year • The declining birth rate caused a significant drop in the percentage of Americans under the age of 17 • While the number of young Americans declined, the number of older Americans increased • In 1900, just 4.1% of the pop was over 65 • By 2000, it had climbed to about 12% • This “graying” of the pop poses a threat to the long-term viability of social security

14. Three Key Demographic Trends, 1981-2000 • The rise of the Sunbelt • Many older citizens chose to retire in the S and W • Known as the Sunbelt, the band of states that stretches from the Carolinas to S Cal also attracted millions of other Americans • Fast growing electronics and computer industries offered job opportunities to go along with the Sunbelt’s mild climate • By 2000, a majority of Americans lived in the Sunbelt states • In 1994, TX passed NY as the nation’s 2nd most populous state

15. Three Key Demographic Trends, 1981-2000 • A new wave of immigrants • The Immigration Act of 1965 triggered a major new wave of immigration • Between 1990 and 2000, over 10 million immigrants entered the U.S., more than in any previous decade in the nation’s history • The largest number of immigrants came from LA and Asia • By 2000, over ½ the foreign-born pop of the U.S. came from LA and about ¼ came from Asia

16. Loose Change Questions • What is the narrator’s argument? • What evidence does the narrator give to support his argument? • Which pieces of evidence are most convincing? Why? • Which pieces of evidence are not believable to you? Why?

17. Prompts #14 and #15 • President Reagan exclaimed, “Government is not the solution to our problem. Government is the problem.” To what extent do you agree or disagree with his statement? • Discuss the main issues facing the United States in the 21st century.