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Reagan/Bush Era

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Page 1: Reagan/Bush Era. Reagan Domestic Issues “Supply Side” economics “Supply Side” economics The belief that the cutting of taxes would lead to more investment

Reagan/Bush Era

Page 2: Reagan/Bush Era. Reagan Domestic Issues “Supply Side” economics “Supply Side” economics The belief that the cutting of taxes would lead to more investment

Reagan Domestic Issues

• “Supply Side” economicsThe belief that the cutting of taxes would lead to more investment in the economy1. The hope that there would be a “trickle down” effect –

money spent by the wealthy would lead to more job and lower prices for the rest of the public

2. Tax policy and deficit: in order to attempt to reduce national debt, and provide for a balanced budget – huge cuts were made in Federal programs – but not in the Defense budget

Page 3: Reagan/Bush Era. Reagan Domestic Issues “Supply Side” economics “Supply Side” economics The belief that the cutting of taxes would lead to more investment

Supreme CourtDuring Reagan’s two terms in office, he appointed 3 new Supreme Court Judges, including the position of Chief Justice, setting a Conservative tone over the court1. Sandra Day O’Connor- was the 1st female on

the court2. Reagan also appointed 50% of the Federal

Judges across the country

Page 4: Reagan/Bush Era. Reagan Domestic Issues “Supply Side” economics “Supply Side” economics The belief that the cutting of taxes would lead to more investment

Reagan Foreign Policy IssuesIran/Contra Connection: in order to support anti-communist groups in Nicaragua and El Salvador, the Reagan Administration did 2 things considered to be illegal1. Sold weapons to the nation of Iran in

violation of federal law2. Took the profits and gave them to anti-

communists in those Central American nations

Page 5: Reagan/Bush Era. Reagan Domestic Issues “Supply Side” economics “Supply Side” economics The belief that the cutting of taxes would lead to more investment

South Africa – Apartheid

The US led international economic pressure on the nation of South Africa

1. Trade embargoes and restrictions on investing in companies there in retaliation for South Africa’s policy of Apartheid

Page 6: Reagan/Bush Era. Reagan Domestic Issues “Supply Side” economics “Supply Side” economics The belief that the cutting of taxes would lead to more investment

Soviet UnionReagan truly distrusted the USSR and denounced the previously created Arms Limitation Treaties created by the Carter Administration1. SDI - Strategic Defense InitiativeReagan supported a weapons system that could possibly defend the US against a Soviet nuclear attack2. “Star Wars”- nickname of the SDI systemMissiles could be shot down or intercepted from weapons in outer space3. Gorbachev- new, younger leader of USSR – realized the Soviet Union had to change in order to survive. Knew he could not get into an arms race with the US4. Fall of Soviet Union- economic pressures and political changes led to popular, though mostly peaceful, revolt against Communism in the USSR. It was successful

Page 7: Reagan/Bush Era. Reagan Domestic Issues “Supply Side” economics “Supply Side” economics The belief that the cutting of taxes would lead to more investment

George H.W. Bush (Sr.)

• 41st President of the United States• Elected president in 1988 with Dan Quayle as

his Vice President • Former Director of the CIA and was

Vice President under Ronald Reagan

Page 8: Reagan/Bush Era. Reagan Domestic Issues “Supply Side” economics “Supply Side” economics The belief that the cutting of taxes would lead to more investment

Immigration• After the 1990 census the “white majority” was soon

to become less than 50% for the 1st time• European immigrants were being replaced with

Hispanic and Asian immigrants• The Hispanic minority was growing at a very rapid

rate – becoming equal with the black minority

What is a census?What is an immigrant?

Page 9: Reagan/Bush Era. Reagan Domestic Issues “Supply Side” economics “Supply Side” economics The belief that the cutting of taxes would lead to more investment

Savings and Loan ScandalThe Reagan administration changed decades of policy by allowing Savings and Loan banks to raise interest rates and take part in commercial lending• Many Savings and Loan’s banks took risky positions in

the real estate market• Following the recession in the late 80’s, many Saving

and Loan’s got into financial trouble• The Bush administration was left to clean up the

mess, eventually costing taxpayers billions of dollars

What is a recession?

Page 10: Reagan/Bush Era. Reagan Domestic Issues “Supply Side” economics “Supply Side” economics The belief that the cutting of taxes would lead to more investment

Social Concerns• Cruzan vs. Director of the Missouri Department

of Health, 1990- Parents of a woman on life support said their

daughter would not want to be left alive on machines – the hospital would not end the treatment

- Supreme Court ruled an individual had the right to refuse treatment – but that there must be “clear and convincing evidence” of a person’s desires

Page 11: Reagan/Bush Era. Reagan Domestic Issues “Supply Side” economics “Supply Side” economics The belief that the cutting of taxes would lead to more investment

• Planned Parenthood of Southeastern Pennsylvania vs. Casey, 1992

- Pennsylvania enacted new regulations regarding abortions

- Supreme reaffirmed a woman’s basic right to an abortion, but upheld most of the new regulations because they were not a “substantial obstacle” in the abortion process

Page 12: Reagan/Bush Era. Reagan Domestic Issues “Supply Side” economics “Supply Side” economics The belief that the cutting of taxes would lead to more investment

AIDS – spread rapidly throughout the world becoming an epidemic

Abortion – had been legal since 1973 and the Roe vs. Wade Supreme Court Case – became a topic of discussion and in 1989 the Supreme Court ruled that each state had the right to impose its own restrictions on abortion – rules now vary from state to state

Drug Abuse – the Reagan administration began a “War on Drugs” – the campaign was called “Just Say No!” to drugs

Page 13: Reagan/Bush Era. Reagan Domestic Issues “Supply Side” economics “Supply Side” economics The belief that the cutting of taxes would lead to more investment

Foreign IssuesNew World Order: Following the fall of the Cold War – Bush declared there was a “New World Order” – an unpredictable environment of changing balance of power

In 1985 Mikhail Gorbachev became the general secretary of the Communist party in the Soviet Union. His rise to power marked the beginning of a new era in the Soviet Union

Gorbachev initiates reform:Glasnost: Russian for openness – he allowed open criticism of the Soviet government and took steps toward freedom of the pressPerestroika: restructuring of Soviet society – called for less government control of the economy

Page 14: Reagan/Bush Era. Reagan Domestic Issues “Supply Side” economics “Supply Side” economics The belief that the cutting of taxes would lead to more investment

Fall of Communism in Eastern Europe- Once 1 nation (Poland) held free elections – the chain of

events spun quickly to end the decades old communist domination of Eastern Europe

- Berlin Wall: the symbolic representation of the Cold War came crashing down, as private citizens took hammers and bulldozers to it – allowing the mixing of East with West

- Soviet Union: under pressures of a failing economy and political freedoms in fellow communist nations, the Soviet government buckled and fell – allowing for free elections and the creation of a new Republic (Commonwealth of Independent States)

Who were the world superpowers during the Cold War?

Page 15: Reagan/Bush Era. Reagan Domestic Issues “Supply Side” economics “Supply Side” economics The belief that the cutting of taxes would lead to more investment

Crisis in Bosnia: unrest after the fall of communism in Yugoslavia led to a civil war between religious minority groups• The Christian Serbs, attempted a policy of

“ethnic cleansing” by moving, or sometimes killing, Bosnian Muslims

• The US led NATO allies in attacking Serbs, then defending Bosnians

What countries today make up what used to be Yugoslavia?

Page 16: Reagan/Bush Era. Reagan Domestic Issues “Supply Side” economics “Supply Side” economics The belief that the cutting of taxes would lead to more investment

Persian Gulf Crisis: begun when Iraq invaded and took over neighboring Kuwait• US led coalition of international nations to demand Iraq

leave Kuwait• Iraq’s leader, Saddam Hussein – refused• The coalition attacked in a massive air and ground

assault • Within days, Kuwait was liberated• When all was over, Saddam Hussein remained in power

What does liberate mean?What was the massive air and ground assault called?

Page 17: Reagan/Bush Era. Reagan Domestic Issues “Supply Side” economics “Supply Side” economics The belief that the cutting of taxes would lead to more investment

Definitions:ReaganomicsApartheidAbortionGlasnostPerestroikaLiberate