The Conservative Era

Chapter 30

Gerald Ford

Ford’s Presidency

• Domestic Policy:

1) Pardoning Nixon

2) “Whip Inflation Now” (WIN) fails

3) Bicentennial Celebration (1976)

• Foreign Policy:1) Fall of Saigon (Vietnam) in 19752) Genocide in Cambodia (Khmer Rouge)3) Other parts of Asia develop economically and resist communism

Election of 1976

Ford beat Ronald Reagan (California governor) but could not compete with Carter’s reputation as a political outsider, which helped him after Watergate

Carter’s Domestic Policy• Inflation rises to 13%,

Carter’s policies do not help problem

• Growth slows and unemployment in industries occurs (leads to Taxpayers’ Revolt)

• Three Mile Island (1979) accident with nuclear reactor

• Bakke case (reverse discrimination halts civil rights progress)

Carter’s Foreign Policy

• Carter’s Foreign Policy record is mixed:1) Human Rights Diplomacy2) Panama Canal Treaty (transfer to Panama)3) Camp David Accords (Israel-Egypt Peace)4) Iran Hostage Crisis (Carter could not free

hostages – considered major failure)5) Soviet Activity – SALT II Treaty, Soviet

invasion of Afghanistan leading to embargo on grain and a boycott of the 1980 Olympics in Moscow

Carter’s Foreign Policy

Human Rights Abuses

Camp David Accords Iran Hostage Crisis

Election of 1980Reagan’s words of “Are you better off now than you were 4 years ago?” and Carter’s foreign and domestic problems won him the election

Perhaps more importantly, the House and Senate went Republican for the first time in half a century, showing that the “Moral Majority” was defeating the “New Deal” liberalism

Reaganomics in the 1980s

Federal Tax Reductions for the wealthy and “trickle-down” economics

Federal Spending Cuts on federal programs to make up for the lack of taxes

This “Supply-side Economics” was meant to boost private investment in the economy

Reagan’s Domestic Events

• Reduced federal regulations on businesses allowing them to invest more (especially savings and loans, automobiles)

• Took a tough stand against labor unions (PATCO – air traffic controllers)

• 1982 Recession (11% unemployment) causes deflation (4%) and recovers in 1983 – but widens rich/poor gap

• Appointed conservatives to the court (Sandra Day O’ Connor, Scalia, and Kennedy) and limits to affirmative action and Roe v. Wade

Foreign Policy under Reagan

• Soviets were “Evil Empire” and led to SDI, Support of “contras” in Nicaragua and other anti-left groups (stopped by Boland Amendment), Invasion of Grenada

• Iran-Contra Affair – free US hostages and receive money in return for military aid – money then goes to fund the Contras

• Israel invades Lebanon to stop PLO and US sends in forces, but the violence causes loss of life and peacekeeping attempts fail

The “Evil Empire” Events

Contras in Nicaragua

Palestine Liberation Organization

The SDI and Military

Foreign Policy

Iran-Contra Affair Middle East

Election of 1984Reagan used the return of prosperity and his widening voter gap of white males (66%) to win the election

Mondale and Ferraro (first woman to run for VP) were easily defeated as liberals

Domestic and Foreign Policy in the Second Reagan Term

• Domestic Policies1) Reagan continued tax cuts and military spending, leading to a tripling of national debt2) Tax cuts led to buying of foreign goods, trade deficit gets worse3) Gramm Balanced Budget Act provided some cuts and less debt, but not enough to stop it

• Foreign Policies

1) Gorbachev introduced glasnost (free speech) and perestroika (free market)

2) INF agreement reduces missiles