MR. LIPMAN’S APUS MR. LIPMAN’S APUS POWERPOINT CHAPTER 40POWERPOINT CHAPTER 40

The 1980s and the Move The 1980s and the Move Towards Conservatism Towards Conservatism

KEYS TO THE CHAPTERKEYS TO THE CHAPTER Supply Side EconomicsSupply Side Economics Military Build-up (restart cold war / stars Military Build-up (restart cold war / stars

wars)wars) Reaganomics (contain gov’t welfare state)Reaganomics (contain gov’t welfare state) Iran Contra ScandalIran Contra Scandal Mikhail Gorbachev (Mikhail Gorbachev (glasnost / perestrokia/glasnost / perestrokia/

YelstinYelstin)) Moral MajorityMoral Majority China (Tiananmen Square)China (Tiananmen Square) Bush 1 (Operation Desert Storm)Bush 1 (Operation Desert Storm)

Reagan Denounced activist governmentReagan Denounced activist government Championed “common man” Championed “common man”

Worked to win over lower-middle-class Worked to win over lower-middle-class whites Democrats by appealing to their whites Democrats by appealing to their sense of losssense of loss

Argued for free-market capitalism, less Argued for free-market capitalism, less government regulation, and hard-line government regulation, and hard-line anti-Soviet position on foreign policy anti-Soviet position on foreign policy

Reassertion of traditional family valuesReassertion of traditional family values

Ronald Ronald ReaganReagan

Carter: Carter: Gracious Gracious

in in defeat; defeat; Working Working

for for Habitat Habitat

for for HumanitHumanity and y and Nobel Nobel PrizePrize

Changes in govt spending (1960 –Changes in govt spending (1960 –80)80)

Federal budget went from primarily Federal budget went from primarily national defense to entitlement national defense to entitlement programs programs

Reagan is devoted to fiscal discipline Reagan is devoted to fiscal discipline and leaner federal government: end and leaner federal government: end entitlement growth and spendingentitlement growth and spending

““Government is not the solution to our Government is not the solution to our problem. Government is the problem.” problem. Government is the problem.”

The Aftermath of Reagan’s The Aftermath of Reagan’s Assassination 3/30/1981Assassination 3/30/1981

Reagan’s tax cuts (supply side Reagan’s tax cuts (supply side economics)economics) 25% across-the-board reductions in 3 years25% across-the-board reductions in 3 years

Reagan wins because of his skill on TV and Reagan wins because of his skill on TV and the continued defection of the “boll weevils” the continued defection of the “boll weevils” (Southern Democrats) (Southern Democrats)

1981 – Congress passed tax reforms 1981 – Congress passed tax reforms Lowered individual tax ratesLowered individual tax rates

Keeping budget under control and tax reduction Keeping budget under control and tax reduction would stimulate new investmentwould stimulate new investment

Theory of Theory of Supply-Supply-

Side Side EconomicEconomic

ss

The The Laffer Laffer CurveCurve

1981 – 1982 – deepest recession since 1981 – 1982 – deepest recession since 1930s but later in the 1980s economy will 1930s but later in the 1980s economy will pick uppick up

Unemployment reached 11% by 1982Unemployment reached 11% by 1982

Businesses folded; bank failures occurredBusinesses folded; bank failures occurred

Automobile industry pummeled by Automobile industry pummeled by Japanese Japanese

Democrats argue Reagan’s tax and Democrats argue Reagan’s tax and spending cuts hurt poor and favored the spending cuts hurt poor and favored the rich rich

Reason for the economic upturn late Reason for the economic upturn late 1980s was not tax cuts but large 1980s was not tax cuts but large military spendingmilitary spending

Put US deeply into debtPut US deeply into debt

Massive government borrowing led to Massive government borrowing led to high interest rates high interest rates

US transformed from world’s largest US transformed from world’s largest creditor to world’s largest debtor creditor to world’s largest debtor nationnation

Results of Increasing income Results of Increasing income inequality during the 1980sinequality during the 1980s

Reversal of long-term trend toward Reversal of long-term trend toward more equitable distribution of income more equitable distribution of income

Increasing squeeze on poor and middle Increasing squeeze on poor and middle class class

Large deficits make future expansion of Large deficits make future expansion of social welfare programs almost social welfare programs almost impossible (forced to shrink gov’t impossible (forced to shrink gov’t programs)programs)

The National Debt 1930 - 1999The National Debt 1930 - 1999

Trickle-Down Theory in RealityTrickle-Down Theory in Reality

Reagan Renews the Cold WarReagan Renews the Cold War Reagan’s hard-line stance toward USSRReagan’s hard-line stance toward USSR

Expansion of military spendingExpansion of military spending

Force USSR to spend lots of money to counter USAForce USSR to spend lots of money to counter USA

Reagan believed in negotiating with USSR from Reagan believed in negotiating with USSR from position of overwhelming strength position of overwhelming strength

SDI {Strategic Defense Initiative aka “Star SDI {Strategic Defense Initiative aka “Star Wars”}Wars”}

Problems in Central AmericaProblems in Central America

1979 – Sandinistas overthrew dictator of 1979 – Sandinistas overthrew dictator of Nicaragua Nicaragua

Reagan accused Sandinistas of allowing Soviet base Reagan accused Sandinistas of allowing Soviet base to attack US & claimed Nicaragua shipping arms to to attack US & claimed Nicaragua shipping arms to revolutionaries in El Salvador revolutionaries in El Salvador

Secret aid (including the CIA mining harbors) Secret aid (including the CIA mining harbors) to Nicaragua’s “contra” rebels (fighting the to Nicaragua’s “contra” rebels (fighting the Sandinistas) Sandinistas)

October 1983 – US forces sent to Grenada, October 1983 – US forces sent to Grenada, where communist coup had taken over where communist coup had taken over country country

A Group of U.S. supported Contra Special Forces A Group of U.S. supported Contra Special Forces on Patrol In a Remote Area of Northern on Patrol In a Remote Area of Northern

Nicaragua, 1983Nicaragua, 1983

Bringing Democracy to NicaraguaBringing Democracy to Nicaragua

The 1984 electionThe 1984 election Reagan easily won the Republican Reagan easily won the Republican

nomination nomination Riding high on prosperity and strong foreign Riding high on prosperity and strong foreign

policypolicy

Walter Mondale won Democratic nomination Walter Mondale won Democratic nomination Congresswoman Geraldine Ferraro (NY) – Congresswoman Geraldine Ferraro (NY) –

first woman to run for vice president on first woman to run for vice president on national ticketnational ticket

Results Results Reagan won bigReagan won big

March 1985 – USSR installed new chairman March 1985 – USSR installed new chairman of Communist party, of Communist party, Mikhail Gorbachev Mikhail Gorbachev

Announced 2 policies-lead to revolutionary Announced 2 policies-lead to revolutionary changeschanges ““GlasnostGlasnost” – “openness”, introduction ” – “openness”, introduction

of free speech and political liberties in of free speech and political liberties in USSRUSSR

““Perestroika” Perestroika” – “restructuring” of – “restructuring” of economy by adopting some practices economy by adopting some practices of capitalist West - like profit motive of capitalist West - like profit motive

Mikhail Mikhail GorbachevGorbachev------------------------

4 Summits 4 Summits with Reaganwith Reagan

----------------------Changes Changes

USSR away USSR away from from

Communist Communist doctrinedoctrine

2 major foreign policy problems – 2 major foreign policy problems – and Reagan finds a way to link them and Reagan finds a way to link them togethertogether

Continuing capture of US hostages by Continuing capture of US hostages by Muslim extremist groups in LebanonMuslim extremist groups in Lebanon

Continuing power of Sandinistas in Continuing power of Sandinistas in NicaraguaNicaragua

Reagan requested aid for contras, but US Reagan requested aid for contras, but US Congress refused Congress refused

Linkage between hostages and SandinistasLinkage between hostages and Sandinistas

1985 – US secretly arranged arms sales to Iran1985 – US secretly arranged arms sales to Iran In return, Iran would help get US hostages held by terrorists In return, Iran would help get US hostages held by terrorists Money from payment of the arms was diverted to the Money from payment of the arms was diverted to the

contras contras

Violation of law banning on military aid to Violation of law banning on military aid to contras contras

Violation of Reagan’s repeated promise that he Violation of Reagan’s repeated promise that he would never negotiate with terrorists would never negotiate with terrorists

November 1986 – news of the secret Iran-November 1986 – news of the secret Iran-contra deal broke (Reagan initially denies contra deal broke (Reagan initially denies knowledge)knowledge)

Reagan Admits Reagan Admits on T.V. That Staff on T.V. That Staff Traded Arms for Traded Arms for Hostages with Hostages with

Iran and Iran and Funneled Profits Funneled Profits

to theto theContras, March Contras, March

19871987

Religion and politics combined in favor of Religion and politics combined in favor of Republicans in 1980sRepublicans in 1980s

1979 – Reverend Jerry Falwell from Virginia 1979 – Reverend Jerry Falwell from Virginia founded founded the Moral Majoritythe Moral Majority

Against sexual permissiveness, abortion, feminism, Against sexual permissiveness, abortion, feminism, gay rights gay rights

““televangelists” used radio, direct-mail televangelists” used radio, direct-mail marketing, cable TV to reach huge audiences marketing, cable TV to reach huge audiences and raise millionsand raise millions

Swaggert; Robertson; Jim and Tammy Swaggert; Robertson; Jim and Tammy BakerBaker

Protest at the Capitol in Favor of School Protest at the Capitol in Favor of School Prayer Organized by the Moral Majority, Prayer Organized by the Moral Majority,

19841984

Courts were Reagan’s chief weapon in Courts were Reagan’s chief weapon in “culture wars”“culture wars” Appointed almost 1/2 of all sitting judges Appointed almost 1/2 of all sitting judges Named 3 Supreme Court justices including Named 3 Supreme Court justices including

Sandra Day O’ConnerSandra Day O’Conner Court reduces impact of affirmative actionCourt reduces impact of affirmative action 1992 – 1992 – Planned Parenthood v. Casey Planned Parenthood v. Casey

States could restrict access to abortion States could restrict access to abortion as long as it did not place an “undue as long as it did not place an “undue burden” on the woman burden” on the woman

But Bork nomination will fail in 1987But Bork nomination will fail in 1987

George George H. BushH. Bush----------------------Defeats Defeats Dukakis Dukakis in 1988 in 1988

on on Reagan’s Reagan’s

recordrecord

Communism falls and democracy begins in Communism falls and democracy begins in former communist block nationsformer communist block nations

China China Spring 1989 Spring 1989 – pro-democracy – pro-democracy

demonstrators marched into demonstrators marched into Tiananmen Square Tiananmen Square in Beijing in Beijing

June 1989 June 1989 Tanks rolled over demonstrators, machine-Tanks rolled over demonstrators, machine-

gunners killed hundreds gunners killed hundreds

US and world condemned the attackUS and world condemned the attack Bush insisted on keeping normal relations Bush insisted on keeping normal relations

A Sea of Student Protesters Gathers in Tiananmen Square on A Sea of Student Protesters Gathers in Tiananmen Square on May 4, 1989, Demanding Greater Freedom of Speech and May 4, 1989, Demanding Greater Freedom of Speech and

DemocracyDemocracy

Tank Man Blocks the Path of a Convoy Near Tiananmen Tank Man Blocks the Path of a Convoy Near Tiananmen SquareSquare

Former communist-controlled Eastern Former communist-controlled Eastern Europe falls in just a few months in 1989Europe falls in just a few months in 1989 August – Solidarity movement inAugust – Solidarity movement in Poland Poland

overthrew the communist government overthrew the communist government

Communist governments then fell in Communist governments then fell in Hungary, Czechoslovakia, East Hungary, Czechoslovakia, East Germany, and RomaniaGermany, and Romania

December 1989 – December 1989 – Berlin Wall Berlin Wall torn downtorn down

October 1990 – 2 Germanys reunited October 1990 – 2 Germanys reunited

Changes in the USSR:Changes in the USSR: August 1991 – hard-line communists August 1991 – hard-line communists

attempted coup of Gorbachev but attempted coup of Gorbachev but failedfailed

USSR dissolved into separate USSR dissolved into separate republicsrepublics Russia itself, led by Boris Yeltsin Russia itself, led by Boris Yeltsin Governments ended communism Governments ended communism

and began democratic and free-and began democratic and free-market reforms market reforms

December 1991 – Gorbachev December 1991 – Gorbachev resigned resigned

Destruction Destruction in Panama in Panama after the after the

US US Invasion, Invasion, 1989, to 1989, to arrest arrest

President President Manuel Manuel NoriegaNoriega

The Persian Gulf CrisisThe Persian Gulf Crisis

August 2, 1990 – Iraq invaded Kuwait August 2, 1990 – Iraq invaded Kuwait Needed Kuwait’s oil to pay its war bills Needed Kuwait’s oil to pay its war bills

(after fighting an 8-year war with Iran) (after fighting an 8-year war with Iran) Larger plan was control over entire Larger plan was control over entire

Middle East, to control world’s oil supplyMiddle East, to control world’s oil supply

US supplied Hussein with weapons US supplied Hussein with weapons and money during 1980sand money during 1980s US knew he was a brutal dictator but he US knew he was a brutal dictator but he

also opposed Iran so we helped himalso opposed Iran so we helped him

Feb.1991 – “Operation Desert Storm”Feb.1991 – “Operation Desert Storm” Land war in Iraq led by coalition forces through Land war in Iraq led by coalition forces through

UNUN Lasted 4 days – the “hundred hour war” Lasted 4 days – the “hundred hour war”

February 27, 1991 – Hussein accepted February 27, 1991 – Hussein accepted cease-fire and Kuwait was liberated cease-fire and Kuwait was liberated

Saddam Hussein remained in powerSaddam Hussein remained in power Allies had agreed only to remove Iraq from Allies had agreed only to remove Iraq from

Kuwait, not regime change Kuwait, not regime change

Gen. Gen. Norman Norman

SchwarzkoSchwarzkopf pf

CommandeCommander of r of

Operation Operation Desert Desert

Storm 1991Storm 1991

Bush and the “social issues”Bush and the “social issues” Had promised “Kindler and Gentler Had promised “Kindler and Gentler

Nation” but:Nation” but: 1990 – Bush’s Department of Education 1990 – Bush’s Department of Education

challenged scholarships targeted to challenged scholarships targeted to minoritiesminorities

promised to veto law that would make it promised to veto law that would make it easier to prove discrimination in hiring easier to prove discrimination in hiring

nominated Clarence Thomas to Supreme nominated Clarence Thomas to Supreme Court & hearing will lead to Anita Hill Court & hearing will lead to Anita Hill revelations.revelations.

Problems for Bush lead to Clinton victoryProblems for Bush lead to Clinton victory

““gender gap”gender gap” Women more critical of Republicans and joined Women more critical of Republicans and joined

Democrats Democrats

EconomyEconomy Weak performance and relatively high (7%) Weak performance and relatively high (7%)

unemployment unemployment

Tax increaseTax increase 1990 – Bush agreed to $133 billion in new taxes1990 – Bush agreed to $133 billion in new taxes

Violated his 1988 campaign pledge: Violated his 1988 campaign pledge: “Read “Read my lips—no new taxes.”my lips—no new taxes.”