RONALD REAGAN

DOMESTIC POLICY

WHAT TWO OPTIONS COULD THE REAGAN ADMINISTRATION DO IN ORDER TO COMBAT STAGFLATION?

Raise interest ratesSupply-side economics = cut taxes

WHAT IS REGANOMICS? EXPLAIN HOW IT WORKED.

Keep interest rates highCongress passes a massive tax cut-25%“trickle down economics”

*benefits the wealthy most not middleclass

WHAT PROGRAMS DID REAGAN CUT FUNDING TO IN ORDER TO BALANCE THE BUDGET AND REDUCE THE DEFICIT?

WelfareFood stampsSchool lunch programsMedicare PaymentsUnemployment compensationStudent loansHousing subsidies reduced

WHAT INDUSTRIES DID REGAN DEREGULATE AND WHY?

End price controls on oil & gasoline-prices went down = more $ to spend

Cable television industry

Ended requirements for airbags & fuel efficient cars

Continued to deregulate the airline industry

increased public land for oil drilling

-create competition among different companies to reduce prices

FOREIGN POLICY

EXPLAIN “PEACE THROUGH STRENGTH” AND HOW IT WAS GOING TO WORK.

Large American military build up($1.5 trillion) that the Soviets would try to match which would put too much pressure on their economy leading to their collapse

WHAT IS THE REAGAN DOCTRINE? GIVE TWO EXAMPLES IN WHICH THE REAGAN DOCTRINE WAS USED.

The U.S. will support guerrillas trying to fight Communism

Afghan Guerrillas- Mujahedeen -$570 million

Nicaraguan Guerrillas- Contras

WHAT SCANDAL TOOK PLACE DURING REAGAN'S SECOND TERM? WHAT WAS THE RESULT OF THE SCANDAL?

Congress prohibited aid to the ContrasReagan’s Administration secretly sold weapons

to Iran (considered an enemy) in exchange for $ and the hostages in the Middle-East

Reagan claimed he had no knowledge about the $ being given to the Contras

HOW DOES REAGAN PRACTICE ARMS CONTROL?

Removal of missilesStrategic Arms Reduction Talks (START)

Cut missiles on both sides in ½Soviets refused and did not agree

WHAT IS STAR WARS?Strategic Defense Initiative- plan to develop

weapons that could intercept incoming missiles

WHAT DID REAGAN WHAT MIKHAIL GORBACHEV TO DO IN EXCHANGE FOR PEACE?

Tear down the Berlin Wall

WHAT IS THE INF TREATY?Intermediate Range Nuclear Forces (INF)-

treaty to destroy nuclear weapons – Dec. 1987

WHAT EVENTUALLY LED TO THE COLLAPSE OF COMMUNISM IN THE SOVIET UNION?

INF in place Gorbachev felt confident in reducing Soviet military spending and could create political and economic reforms instead

The reforms eventually led to the collapse of the economy and Communism in Eastern Europe & Soviet Union