Introduction
Reagan’s Administration 1980 - 1988Backlash of Nixon scandals and
Carter’s unpopularityConservative shift in American
politicsEnd of the Cold WarTurmoil in the Middle East and the
BalkansWhite House Scandals
Conservative Political Shift: New World Order in 1980’s
Conservative Cultural Trends in the 1970’s Reaction to polarizing effect of 1960’s and
counterculture Roe vs. Wade 1973
Mobilized conservatives = right to life movement
Feminism and the Conservative Backlash
The Moral Majority
Religious Right becomes stakeholder in right wing politics Republican party embraces evangelical Christian
groups in America Jerry Falwell, Christian radio & megachurches
1980 Election: Triumphant Return of Conservatism
Reagan won solid Democratic constituencies in the South
Over half white & blue collar workers in those States
Reagan took advantage of rise of conservative sunbelt states
Called for return to traditional values
Responded to voter concern re economy (stagflation of 1970’s)
Election of 1980• Carter was in a horrible spot
o "ABC" (Anybody But Carter) Movement in the Democratic party
• Reagan ran on:o being a fiscal and social conservativeo a return to small governmento reversing the New Deal and Great Society effect on
gov'to being staunchly anti-Communist
o Video: Reagan’s inaugural address
Reagan’s Domestic Agenda
Federal Income Tax Cuts and Federal Domestic Spending
Savings & Loans deregulatedEnvironmental legislation loosenedHard line on Labor unions
(Air Traffic controller strikersfired and replaced by non-unionWorkers)
Reagan and the Economy
Federal Reserve Board cuts interest rates = lowering inflation
Recession continues into 1982 but recovery begins in third quarter
Blue line is Percent Change From Preceding Period in Real Gross Domestic Product (annualized; seasonally adjusted)
Red line is Average GDP growth 1947–2009 Data is from the Bureau of Economic Analysis.
Economic Growth in U.S. Late 1970’s to Early 1980’s
Reagan and the Economy
Wall Street Frenzy: Illegal and Unethical financial dealings
Stock market crash 1987, reducing paper stocks by 20% overnight
BUT stock market recovers quicklyReagan’s legacy of soaring trade deficit
Reagan and the Supreme Court
Reagan begins to reshape the Supreme Court
Appoints 1st female member: Sandra Day O’Conner
Antonin Scalia Anthony Kennedy
The Reagan Revolution
• The Reagan Revolutiono The return of conservatismo A reaction to big government and social
engineering (New Deal/Great Society)
• "Best of the Rightest"
• Small Gov't Policieso Cut social programso Raise defense spendingo Supply Side Economicso Tax cuts
Reagan cuts taxes 25% over three years
Reagan and Supply-Side Economics
• Reaganomicso The idea is that cuts in
taxes would create economic growth that would bring in more tax revenue Budgetary restraint is
necessary as well Controversial: some
argue that Reaganomics benefited the wealthy while squeezing the middle class and the poor
The Cold Warrior
• Evil Empireo Soviets were
"prepared to commit any crime, to lie, to cheat"
o Soviet Union is "evil empire" and "the focus of evil in the modern world"
Reagan and Military Spending
o Under Reagan massive military spending led to large deficits (deficit spending) Reagan added $2 trillion to the
national debt
New Arms Race Reagan in essence
used deficit spending to bury the Soviets in a new arms race SDI or Star Wars
scared the Soviets and gave Reagan a huge advantage
All arms negotiations ended
Military build-up leads to grassroots nuclear freeze movement
Consequence: Mobilization of Opposition
The Teflon President
• Marine Barracks bombing in Beirut (1983)o killed over 200
Marineso American troops
were pulled out after this
o Weapons were sold to Iran (the “enemy”) in return for the Iranians help in releasing hostages held in the Middle East Money made was then given
to the Contraso Reagan claimed to not know
anything Claimed his subordinates
were to blameo Despite this Reagan
remained popular
Iran-Contra Scandal (1985)
Reagan and the End of the Cold War
• Reagan and Gorbachevo Gorbachev sought an end to the
Cold War because the Soviets could not afford the military spending
o Glasnost & Perestroika were meant to revive the Soviet economy
o Nuclear Summit Meetings Banned a certain type of offensive
nuclear missiles
Reagan’s Legacy
Mixed Domestic Record Improved economy ≠Soaring federal deficits Exploited white middle class anxieties
His critics saw his administration as interlude of nostalgia + drift to conservatism
Reagan’s admirers praised him for reasserting the values for self-reliance & free
enterprise Criticizing governmental excess Restoring national pride
Polarizing figure between Conservatives and Liberals
1988 Presidential election resultsBush 54% of popular vote
Dukakis inarticulate and accused of being light on crime- very few issues discussed – photo ops election
Democrats retained majority in Congress
George H. Bush’s Administration
End of Cold War Fall of Berlin Wall September 1989 Reunification of Germany Baltic Republics declared their independence from
USSR 1991 Signs a nuclear arms treaty reducing arsenal
by 25%
Domestic Troubles
Saving and Loan Scandalin 1980’s
1
•Saving and Loan Banks (S & Ls) make loans to individuals
2
•Reagan administration deregulates S&Ls allowing them to make riskier investments
3
•Officials at some S&Ls take advantage of new laws by making risky real estate investments, hoping for huge profits
4
5
6
• Real estate markets cool down in late 1980s S&Ls lose $2.6 B from people’s savings accounts
• Because bank accounts are insured by the government, taxpayers have to make up for the billions of dollars lost
• Several S&L officials are prosecuted for their role in the scandal and their efforts to cover it up
1990 Recession HitsSales fallTax revenue fallsUnemployment climbsAdditional 2 million Americans sink below
poverty line homelessness
1992 LA RiotsDeep-seeded social maladiesPoverty and anger worsen in inner-citiesBegan in black neighborhoods after
overthrow of conviction of police officers in R. King case
EPA (Environmental Protection Agency) Report on Air Quality
Report Released – pronounces air in more than 100 U.S. cities hazardous to breathe
Bush administration ignores these environmental problems
Continues oil exploration &drilling in Alaska
Undermines global treaties on global warming (Kyoto) & mining in Antarctica
BUT signs the 1990 Federal Clean Air Act
Social Legislation
Bush also signs the American Disabilities Act
wide-ranging civil rights law that prohibits, under certain circumstances, discrimination based on disability