CONSERVATIVE POLICIES UNDER

REAGAN

CHAPTER 33, SECTIONS 2 & 3

IMPORTANT TERMS

REAGANOMICS SUPPLY-SIDE ECONOMICS STRATEGIC DEFENSE INITIATIVE TRADE IMBALANCE SANDRA DAY O’CONNOR WILLIAM RHENQUIST GERALDINE FERRARO

TIMELINE

1984: REAGAN RE-ELECTED 1988: GEORGE BUSH, Sr. ELECTED

Ronald Reagan,

40th President of U.S.

Pres. Ronald Reagan

& Vice-President

George H.W. Bush

Ronald Reagan

Ronald Regan, Actor

KNUTE ROCKNE, ALL-AMERICAN MOVIE POSTER

Ronald Reagan in

California

REAGANOMICS WHAT WAS REAGANOMICS?

PRES. REAGAN’S PLAN / POLICY TO IMPROVE THE U.S. ECONOMY

EXPLAIN: REAGANOMICS WAS BASED ON 3 BASIC PRINCIPLES:

LARGE TAX CUTS… WOULD INCREASE PRIVATE INVESTMENTS… WOULD INCREASE U.S. SUPPLY OF GOODS & SERVICES

OTHER PRINCIPLES OF REAGANOMICS: SUPPLY-SIDE ECONOMICS: DEFINE: CUTTING TAX RATES… GAVE PEOPLE MORE INCENTIVE TO WORK, SAVE & INVEST

HOW DID IT WORK (IN THEORY)? MORE BUSINESS INVESTMENT = MORE JOBS WHY? ENTREPRENEURS & OTHER SUPPLIERS

DEVELOPED NEW PRODUCTS & SERVICES MORE WORKERS = MORE TAXPAYERS MORE TAXPAYERS = WEALTHIER U.S. GOV’T.

REAGANOMICS (CONT’D.) SUPPLY-SIDE ECONOMICS WAS ALSO CALLED…

TRICKEL-DOWN ECONOMICS WHY? BECAUSE THE PROSPERITY ENJOYED BY THE

BUSINESS OWNERS WAS SUPPOSED TO “TRICKLE-DOWN” TO THE WORKING CLASSES

SUPPLY-SIDE ECONOMICS: PROS?

INFLATION DECREASED STOCK MARKET IMPROVES UNEMPLOYMENT DECLINED GROSS NATIONAL PRODUCT (GNP): UP 10%

CONS? NATIONAL DEBT INCREASED EX.: 1980-92: $900 BIL. TO $4 TRILLION TRADE IMBALANCE (DEFINE)

OTHER DEVELOPMENTS SUPREME COURT MOVES TO THE RIGHT:

EXAMPLES? SANDRA DAY O’CONNOR: 1st WOMAN APPOINTED

TO THE SUPREME COURT WILLIAM RHENQUIST: VERY CONSERVATIVE

JUSTICE BECOMES CHIEF JUSTICE SO WHAT? REAGAN (AND LATER BUSH, Sr.) MAKE

SUPREME CT. MORE CONSERVATIVE INCREASED MILITARY SPENDING:

WHY? TO STIMULATE THE ECONOMY CONCERN OVER SOVIET THREAT

EXAMPLE? STRATEGIC DEFENSE INITIATIVE (S.D.I.):

NICKNAMED “STAR WARS” GOAL: TO ELIMINATE SOVIET ICBM THREAT

Reagan at the

Berlin Wall:

“Mr. Gorbachev,

tear down this

wall!”

S.D.I. / “STAR WARS”

S.D.I. ISSUE ON TIMEMAGAZINE COVER

DE-REGULATION

REAGAN DEREGULATES THE ECONOMY WHY? TO STIMULATE MORE BUSINESS &

BUSINESS PROFITS EXAMPLES?

SAVINGS & LOAN INDUSTRY: S & L’s ALLOWED TO INVEST IN COMMERCIAL REAL ESTATE

PROBLEM? RISKY INVESTEMENTS LED TO S & L FAILURES

EFFECT? INVESTOR SAVINGS WIPED OUT OTHER EXAMPLES?

E.P.A. BUDGET CUT

THE 1984 & 1988 ELECTIONS

CONSERVATIVES WIN BOTH ELECTIONS: SO WHAT? REPUBLICAN PARTY IN WHITE

HOUSE FOR 3 TERMS (12 YEARS) WHY?

CONSERVATIVE COALITION HAD MANY GROUPS / SUPPORTERS

COALITION HAD WIDE GEOGRAPHIC SUPPORT IN U.S.

SEE P. 986, TOP

CHAPTER 33, SECTION 3

IMPORTANT TERMS: A.I.D.S.

ACQUIRED IMMUNE DEFICIENCY SYNDROME

PAY EQUITY L. DOUGLAS WILDER JESSE JACKSON AFFIRMATIVE ACTION

CHAPTER 33, SECTION 3

IMPORTANT DATES: 1983: A NATION AT RISK REPORT

PUBLISHED 1984: REV. JESSE JACKSON RUNS FOR

DEMOCRATIC PARTY PRESIDENTIAL NOMINATION

1988: JACKSON RUNS AGAIN 1990: L. DOUGLAS WILDER ELECTED

GOV. OF VIRGINIA 1992: THE RODNEY KING RIOTS

NEW PROBLEMS New Problems: Health Issues Examples:

A.I.D.S. Origin: Most likely Central / East Africa How? Animal – Human, then Human – Human Primarily Blood-borne / Bodily fluids H.I.V. virus is source N.America: 1st becomes noticed in Gay / Bisexual

and I.V. Drug user groups Reaction?

Bad; Gov’t. is not sympathetic to victims Gov’t funds for research are slow to develop

Result? Disease jumps into Heterosexual community Is still an ongoing health concern

A.I.D.S in

Europe

NEW PROBLEMS (Cont’d.) DRUG USE & EPIDEMICS:

PROBLEM: Drug use among citizens continued to increase in 1980’S

WHAT GROUPS? Primarily young Americans “NEW” DRUGS ADD TO TROUBLE:

Examples: Cocaine “Crack” PCP Methamphetamines / Synthetic Drugs (“Ecstasy”, “Crank”, etc.)

WHY IS PROBLEM GETTING WORSE? Answer: Expansion of drug use coincides w/ more

gang-related violence Examples:

1980: 10 U.S. cities reported major gang-related violence 1990: 125 U.S. cities report major gang-related violence

NEW PROBLEMS (Cont’d.)

Gov’t Response to Drug problem: Nancy Reagan: Just Say No! Campaign Gov’t. begins random drug testing Congress cuts off college loans & public housing

for marijuana users U.S. Military becomes more heavily involved in

drug enforcement (Coast Guard, Navy, Army) Penalties increased for drug users / dealers

Result? “The War on Drugs” begins Problem: Drug dealers / suppliers constantly

change methods of distribution / production

2007 Major Drug Problems by Region Green: Marijuana Blue: Cocaine Red: Methamphetamines

Major International Drug Traders

Pablo Escobar Rayful Edmond, III

Body of Pablo Escobar after shootout, 1993

TIME Magazine

Cover, July, 1991

NEW PROBLEMS (Cont’d.) 1983: Presidential Commission Report Subject: U.S. education Title: A Nation at Risk Result?

Reports serious problems w/ U.S. education Examples?

Scores on standardized tests among students had declined since 1957

Most 17-yr. olds couldn’t read a paragraph in English

23 mil. Americans couldn’t follow instruction manuals or complete job application form

Most 17-yr. olds could find U.S. on a world map Response: Many suggestions, few effective

The Reverend Jesse Jackson

GUESS WHO (Again)?

L. Douglas Wilder,

Governor of Virginia

THE RODNEY KING RIOTS WHEN? April,1992 WHERE? Los Angeles WHY? Acquittal of 4 LAPD officers charged w/

videotaped beating of motorist Rodney King RESULT? Widespread violence / looting in Central

L.A.

Rodney King Video, 1991