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The New Right and the Reagan Revolution. Carter’s Crisis of Confidence. President Carter struggled with inflation, high unemployment, and soaring energy costs. After the 1979 Islamic Revolution, Iran stopped oil shipments to the US. - PowerPoint PPT Presentation

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Page 1: The New Right and the Reagan Revolution

The New Right The New Right and the Reagan and the Reagan

RevolutionRevolution

Page 2: The New Right and the Reagan Revolution

Carter’s Crisis of Carter’s Crisis of ConfidenceConfidence

President Carter struggled with President Carter struggled with inflation, high unemployment, and inflation, high unemployment, and soaring energy costs.soaring energy costs.

After the 1979 Islamic Revolution, After the 1979 Islamic Revolution, Iran stopped oil shipments to the Iran stopped oil shipments to the US. US.

He delivered a televised address He delivered a televised address that became known as the "Malaise that became known as the "Malaise Speech." Speech."

Carter asks Americans to return to Carter asks Americans to return to the attitudes and values that made the attitudes and values that made America strong and to share the America strong and to share the responsibility of energy responsibility of energy conservation. conservation.

Congress rejected most of the Congress rejected most of the energy proposals in the speech. energy proposals in the speech.

Carter's approval rating Carter's approval rating plummeted.plummeted.

The president was criticized for The president was criticized for "blaming" the American people and "blaming" the American people and offering few solutions. offering few solutions.

Page 3: The New Right and the Reagan Revolution

Carter’s “Malaise Carter’s “Malaise Speech”Speech”

““In a nation that was proud of In a nation that was proud of hard work, strong families, hard work, strong families, close-knit communities, and our close-knit communities, and our faith in God, too many of us faith in God, too many of us now tend to worship self-now tend to worship self-indulgence and consumption.”indulgence and consumption.”

“ “This intolerable dependence This intolerable dependence on foreign oil threatens our on foreign oil threatens our economic independence and economic independence and the very security of our nation. the very security of our nation. The energy crisis is real.”The energy crisis is real.”

““Every act of energy Every act of energy conservation like this is more conservation like this is more than just common sense -- I tell than just common sense -- I tell you it is an act of patriotism.”you it is an act of patriotism.”

Gas lines during the energy crisis

Page 4: The New Right and the Reagan Revolution

Iran Hostage Crisis Iran Hostage Crisis Discredits CarterDiscredits Carter

After US-backed Shah of After US-backed Shah of Iran was deposed in January Iran was deposed in January 1979, the most westernized 1979, the most westernized country in the Middle East country in the Middle East transitioned to an Islamic transitioned to an Islamic fundamentalist regime led by fundamentalist regime led by Ayatollah Ruholla Khomeini. Ayatollah Ruholla Khomeini.

When President Carter When President Carter allowed the Shah into the allowed the Shah into the United States for cancer United States for cancer treatment, a student group treatment, a student group stormed the US embassy in stormed the US embassy in Iran and took 53 staff Iran and took 53 staff members hostage. members hostage.

Public support for Carter Public support for Carter quickly waned as the months quickly waned as the months dragged on with no progress. dragged on with no progress.

Page 5: The New Right and the Reagan Revolution

Iran Hostage Crisis Iran Hostage Crisis Discredits CarterDiscredits Carter

After months of abortive efforts to After months of abortive efforts to forge a diplomatic solution, the forge a diplomatic solution, the President ordered a secret military President ordered a secret military rescue operation in April 1980. rescue operation in April 1980.

The operation ended in disaster The operation ended in disaster before getting close to the before getting close to the embassy when two helicopters embassy when two helicopters malfunctioned and another malfunctioned and another collided with a cargo plane, killing collided with a cargo plane, killing eight service members. eight service members.

Iranians displayed the burned Iranians displayed the burned corpses before television cameras.corpses before television cameras.

The Iran Hostage Crisis became The Iran Hostage Crisis became symbolic of the decline of US symbolic of the decline of US prestige in the world and the prestige in the world and the President was criticized for President was criticized for incompetence.incompetence.

After 444 days of captivity, the After 444 days of captivity, the hostages were released hostages were released immediately after Reagan's immediately after Reagan's inauguration in January 1981. inauguration in January 1981. Wreckage of Operation Eagle Claw

Page 6: The New Right and the Reagan Revolution

Roe v. Wade Mobilizes Roe v. Wade Mobilizes ConservativesConservatives

In Roe v. Wade (1973), the In Roe v. Wade (1973), the Supreme Court ruled that state Supreme Court ruled that state laws restricting abortion laws restricting abortion violated a woman's violated a woman's constitutional right to privacy. constitutional right to privacy.

The issue of legalized abortion The issue of legalized abortion helped galvanize the rise of the helped galvanize the rise of the Christian Right in the 1970's Christian Right in the 1970's and 1980's. and 1980's.

In the wake of the sexual In the wake of the sexual revolution and the women's revolution and the women's liberation movement, many liberation movement, many conservatives sought to conservatives sought to restore "traditional family restore "traditional family values".values".

Roe v. Wade catalyzed the Roe v. Wade catalyzed the formation of a number of formation of a number of enduring political enduring political organizations.organizations.

Page 7: The New Right and the Reagan Revolution

Phyllis Schlafly and the Phyllis Schlafly and the ERA ERA

One item on the agenda of social One item on the agenda of social conservatives in the 1970's was conservatives in the 1970's was the defeat of the Equal Rights the defeat of the Equal Rights Amendment. Amendment.

Many felt that felt that Many felt that felt that "traditional family values" had "traditional family values" had been undermined by the been undermined by the women's liberation movement. women's liberation movement.

Others were repelled by what Others were repelled by what they believed was intervention by they believed was intervention by the state into the private sphere. the state into the private sphere.

The campaign to stop The campaign to stop ratification, led by activist and ratification, led by activist and self-described homemaker Phyllis self-described homemaker Phyllis Schlafly, demonstrated the Schlafly, demonstrated the financial and political capabilities financial and political capabilities of the emerging New Right. of the emerging New Right.

ERA died in 1982, just three ERA died in 1982, just three votes short of passage.votes short of passage.

Page 8: The New Right and the Reagan Revolution

Text of Proposed ERAText of Proposed ERA Section 1. Equality of rights Section 1. Equality of rights

under the law shall not be under the law shall not be denied or abridged by the denied or abridged by the United States or by any State United States or by any State on account of sex.on account of sex.

Section 2. The Congress shall Section 2. The Congress shall have the power to enforce, by have the power to enforce, by appropriate legislation, the appropriate legislation, the provisions of this article.provisions of this article.

Section 3. This amendment Section 3. This amendment shall take effect two years shall take effect two years after the date of ratification.after the date of ratification.

Page 9: The New Right and the Reagan Revolution

The Christian RightThe Christian Right The growth of evangelical The growth of evangelical

Christianity in the 1970's Christianity in the 1970's reflects the concern for what reflects the concern for what many perceived as a decline many perceived as a decline in traditional moral values. in traditional moral values.

By 1978, 40% of Americans By 1978, 40% of Americans described themselves as described themselves as "born again," including "born again," including President Carter. President Carter.

The divisive issues pervading The divisive issues pervading American politics, including American politics, including abortion and women's rights, abortion and women's rights, contributed to the contributed to the proliferation of evangelical proliferation of evangelical political organizations. political organizations.

Page 10: The New Right and the Reagan Revolution

TelevangelismTelevangelism Evangelical television Evangelical television

progamming enjoyed a rising progamming enjoyed a rising level of influence and level of influence and viewership throughout the viewership throughout the 1970's and 1980's. 1970's and 1980's.

Charismatic "televangelists" Charismatic "televangelists" like Jerry Falwell, Jim Bakker, like Jerry Falwell, Jim Bakker, Jimmy Swaggert, and Pat Jimmy Swaggert, and Pat Robertson delivered rousing Robertson delivered rousing sermons that resonated with sermons that resonated with disaffected evangelicals and disaffected evangelicals and translated into political translated into political action.action.

Jim and Tammy Faye Bakker

Page 11: The New Right and the Reagan Revolution

Political Influence of the Political Influence of the Christian RightChristian Right

Groups like the National Groups like the National Conservative Political Action Conservative Political Action Committee and Reverend Jerry Committee and Reverend Jerry Falwell's Moral Majority Falwell's Moral Majority pioneered the use of sophisticated pioneered the use of sophisticated campaigning and fundraising campaigning and fundraising techniques such as direct mail. techniques such as direct mail. The influence and campaign The influence and campaign tactics of Christian Right tactics of Christian Right delivered a critical proportion of delivered a critical proportion of votes to Ronald Reagan in 1980.votes to Ronald Reagan in 1980.

Rev. Jerry Falwall

Page 12: The New Right and the Reagan Revolution

Intellectual Foundations of Intellectual Foundations of Modern Conservatism: Modern Conservatism:

Goldwater Goldwater

Senator Barry Goldwater is Senator Barry Goldwater is widely regarded as the Father of widely regarded as the Father of Modern American Conservatism. Modern American Conservatism.

Goldwater's libertarian Goldwater's libertarian orientation often put him at odds orientation often put him at odds with the social and moral with the social and moral agenda of the Reagan agenda of the Reagan Administration and the Christian Administration and the Christian Right by the 1980's. Right by the 1980's.

Page 13: The New Right and the Reagan Revolution

““The Speech”The Speech” Reagan's televised 1964 "A Reagan's televised 1964 "A

Time for Choosing" speech on Time for Choosing" speech on behalf of the Goldwater behalf of the Goldwater campaign propelled the actor campaign propelled the actor from corporate spokesman to from corporate spokesman to conservative champion. conservative champion.

It became known simply as It became known simply as "The Speech." "The Speech."

Reagan outlined the goals of Reagan outlined the goals of the modern conservative the modern conservative movement: smaller movement: smaller government, lower taxes, government, lower taxes, personal autonomy, and more personal autonomy, and more aggressive policy toward aggressive policy toward Communist states.Communist states.

He implies that liberal policies He implies that liberal policies represent a dangerous shift represent a dangerous shift toward socialism, even drawing toward socialism, even drawing parallels between Lyndon parallels between Lyndon Johnson and Karl Marx.Johnson and Karl Marx.

Page 14: The New Right and the Reagan Revolution

Intellectual Foundations of Intellectual Foundations of Modern Conservatism: KirkModern Conservatism: Kirk

Russell Kirk was another Russell Kirk was another influential intellectual of influential intellectual of American conservatism. American conservatism. Reagan awarded him with Reagan awarded him with Presidential Citizens Medal in Presidential Citizens Medal in 1989. 1989.

Kirk’s “The Essence of Kirk’s “The Essence of Conservatism” (1957) : Conservatism” (1957) : “The conservative is a person “The conservative is a person who endeavors to conserve who endeavors to conserve the best in our traditions and the best in our traditions and our institutions, reconciling our institutions, reconciling that best with necessary that best with necessary reform from time to time.”reform from time to time.”

Page 15: The New Right and the Reagan Revolution

Election of 1980 Election of 1980 Throughout his term, President Throughout his term, President

Carter grappled with economic Carter grappled with economic issues coupled with foreign issues coupled with foreign policy nightmares such as the policy nightmares such as the ongoing Iran Hostage Crisis and ongoing Iran Hostage Crisis and strained Soviet-American strained Soviet-American relations following the USSR relations following the USSR invasion of Afghanistan in 1979.invasion of Afghanistan in 1979.

Throughout the campaign, Throughout the campaign, Reagan questioned Carter's Reagan questioned Carter's competence, while Carter tried competence, while Carter tried to cast him as a dangerous to cast him as a dangerous extremist. extremist.

The election came down to a The election came down to a single televised debate in single televised debate in October 1980. Reagan closed October 1980. Reagan closed the debate with the campaign's the debate with the campaign's signature refrain, "Are you signature refrain, "Are you better off now than you were better off now than you were four years ago?"four years ago?"

Page 16: The New Right and the Reagan Revolution

Reagan LandslideReagan Landslide The election ended in a The election ended in a

landslide victory of Ronald landslide victory of Ronald Reagan and the first Reagan and the first Republican majority in the Republican majority in the Senate since 1952. Senate since 1952.

Dismal voter turnout Dismal voter turnout suggested disaffection and suggested disaffection and apathy toward the political apathy toward the political process as the 1970's process as the 1970's came to an end and the came to an end and the "Reagan Revolution" "Reagan Revolution" began.began.

Page 17: The New Right and the Reagan Revolution

Election of 1980Election of 1980

Page 18: The New Right and the Reagan Revolution

Reagan’s Presidential AgendaReagan’s Presidential Agenda

Reduce the federal bureaucracy, deregulate Reduce the federal bureaucracy, deregulate certain industries, cut taxes, increase the certain industries, cut taxes, increase the defense budget, take a hard line with the defense budget, take a hard line with the Soviets, and appoint conservative judgesSoviets, and appoint conservative judges

In his first few months as president, Reagan got In his first few months as president, Reagan got much of what he wanted.much of what he wanted.

Image grew stronger as he survived an Image grew stronger as he survived an assassination attemptassassination attempt

Proved himself capable of decisive action when Proved himself capable of decisive action when he fired 13,000 striking air traffic controllershe fired 13,000 striking air traffic controllers

Page 19: The New Right and the Reagan Revolution

The Reagan Revolution The Reagan Revolution Begins Begins

Following his overwhelming Following his overwhelming victory Reagan and his political victory Reagan and his political allies began an effort to reverse allies began an effort to reverse the political legacy of the New the political legacy of the New Deal and Great Society. Deal and Great Society.

In his first Inaugural Address: "In In his first Inaugural Address: "In this present crisis, government is this present crisis, government is not the solution to our problem; not the solution to our problem; government is the problem." government is the problem."

Reagan was able to capitalize on Reagan was able to capitalize on the new conservative national the new conservative national sentiment with a simple message: sentiment with a simple message: low taxes, smaller government, low taxes, smaller government, and strong national defense.and strong national defense.

In addition to delivering a clear, In addition to delivering a clear, concise agenda, Reagan conveyed concise agenda, Reagan conveyed a sense of optimism and a sense of optimism and accessibility that earned him the accessibility that earned him the title "The Great Communicator." title "The Great Communicator."

Page 20: The New Right and the Reagan Revolution

A Dramatic Start to the A Dramatic Start to the Reagan Presidency Reagan Presidency

In 1981, Reagan enjoyed high In 1981, Reagan enjoyed high public approval and success in public approval and success in implementing his campaign implementing his campaign promises. promises.

Immediately following his Immediately following his inauguration, Iranian terrorists inauguration, Iranian terrorists released the American hostages released the American hostages after 444 days of captivity. after 444 days of captivity.

Congress enacted legislation to Congress enacted legislation to reduce tax rates by 25% over reduce tax rates by 25% over three years, cut social three years, cut social spending, and advance the goal spending, and advance the goal of a balanced budget by 1984. of a balanced budget by 1984.

Page 21: The New Right and the Reagan Revolution

A Dramatic Start to the A Dramatic Start to the Reagan PresidencyReagan Presidency

On March 30, 1981, Reagan survived an assassination attempt by On March 30, 1981, Reagan survived an assassination attempt by John Hinkley Jr, who shot the president in an effort to impress actress John Hinkley Jr, who shot the president in an effort to impress actress Jodie Foster. Reagan was more badly injured than the administration Jodie Foster. Reagan was more badly injured than the administration reported, but he remained optimistic and his approval rating reached reported, but he remained optimistic and his approval rating reached 73%. 73%.

Page 22: The New Right and the Reagan Revolution

A Dramatic Start to the A Dramatic Start to the Reagan PresidencyReagan Presidency

In 1981, Reagan appointed the first female Supreme Court In 1981, Reagan appointed the first female Supreme Court Justice Sandra Day O'Connor. Although she identified herself as a Justice Sandra Day O'Connor. Although she identified herself as a moderate Republican, foes of abortion and the ERA condemned moderate Republican, foes of abortion and the ERA condemned her appointment to the bench. her appointment to the bench.

Page 23: The New Right and the Reagan Revolution

ReaganomicsReaganomics The acendancy of The acendancy of

conservatism in the 1980's conservatism in the 1980's can be partially attributed to can be partially attributed to the economic "stagflation" of the economic "stagflation" of the Carter years. the Carter years.

Reagan espoused supply-side Reagan espoused supply-side economic theory. economic theory.

Supply-siders favored Supply-siders favored simultaneous tax cuts and simultaneous tax cuts and reductions in spending to reductions in spending to encourage investors and encourage investors and entrepreneurs.entrepreneurs.

Conservative author George Conservative author George Gilder wrote, "a successful Gilder wrote, "a successful economy depends on the economy depends on the proliferation of the rich." proliferation of the rich."

Page 24: The New Right and the Reagan Revolution

ReaganomicsReaganomics Reagan delivered an address to Reagan delivered an address to

Congress shortly after being Congress shortly after being wounded in an assassination wounded in an assassination attempt. attempt.

In the spirit of the Reagan In the spirit of the Reagan Revolution, he calls upon Revolution, he calls upon lawmakers to try a radical new lawmakers to try a radical new approach to economic policy. approach to economic policy.

Congress members received Congress members received him with applause and quickly him with applause and quickly passed the Economic Recovery passed the Economic Recovery Tax Act of 1981 (with cut taxes Tax Act of 1981 (with cut taxes by $747 billion over five years) by $747 billion over five years) and the Omnibus Reconciliation and the Omnibus Reconciliation Act of 1981 (which in one piece Act of 1981 (which in one piece of legislation, cut over 200 of legislation, cut over 200 social and cultural spending by social and cultural spending by $136 billion over two years). $136 billion over two years).

The tax cut was the largest in The tax cut was the largest in history.history.

Page 25: The New Right and the Reagan Revolution

What Reagan Faced:What Reagan Faced:The Economic ProblemsThe Economic Problems

The inflation creep of the 1970s had resulted The inflation creep of the 1970s had resulted in an enormous increase in tax burden in an enormous increase in tax burden through “bracket creep”.through “bracket creep”.

Social security tax and Medicare had also Social security tax and Medicare had also increased the personal tax burden.increased the personal tax burden.

According to Boston College economist Barry According to Boston College economist Barry Bluestone, 31 million jobs had been Bluestone, 31 million jobs had been destroyed between 1978 and 1982.destroyed between 1978 and 1982.

Fully one-third of all private sector jobs that Fully one-third of all private sector jobs that existed in 1978 had disappeared by 1982.existed in 1978 had disappeared by 1982.

Page 26: The New Right and the Reagan Revolution

What Reagan Faced:What Reagan Faced:Defense IssuesDefense Issues

Defense spending had declined from 9.6% of GNP in Defense spending had declined from 9.6% of GNP in FY1962 to 5.5% of GNP in FY1981, a decline of 43%.FY1962 to 5.5% of GNP in FY1981, a decline of 43%.

More of the defense spending in 1981 was directed More of the defense spending in 1981 was directed toward salaries and pensions than in 1962.toward salaries and pensions than in 1962.

CIA reports showed that defense expenditures in the CIA reports showed that defense expenditures in the Soviet Union were twice as high (as a percent of output) Soviet Union were twice as high (as a percent of output) than U.S. defense expenditures, implying that the than U.S. defense expenditures, implying that the U.S.S.R. was spending 45% more on defense than the U.S.S.R. was spending 45% more on defense than the U.S.U.S.

In 1979, the Soviet Union invaded Afghanistan and the In 1979, the Soviet Union invaded Afghanistan and the U.S. embassy in Iran was seized.U.S. embassy in Iran was seized.

The questions everyone was asking was “Can we defend The questions everyone was asking was “Can we defend ourselves? Are we ready?”ourselves? Are we ready?”

Page 27: The New Right and the Reagan Revolution

Results (1)Results (1) Despite the tax cuts of 1981, federal tax Despite the tax cuts of 1981, federal tax

revenues nearly doubled in the Reagan years. revenues nearly doubled in the Reagan years. (Washington Times, 8/25/1992)(Washington Times, 8/25/1992)

Real inflation-adjusted manufacturing output Real inflation-adjusted manufacturing output rose to its highest point of the post-WWII rose to its highest point of the post-WWII period.period.

In 1989, capital goods production was 38% of In 1989, capital goods production was 38% of total manufacturing production, as compared total manufacturing production, as compared with 1967 when it was 28%.with 1967 when it was 28%.

In 1989, exports of capital goods were 45% In 1989, exports of capital goods were 45% of total capital goods production, compared of total capital goods production, compared to 20% in 1967.to 20% in 1967.

Page 28: The New Right and the Reagan Revolution

Results (2)Results (2) Domestic-based manufacturing Domestic-based manufacturing

employment fell from 20.3 million in employment fell from 20.3 million in 1980 to 19.2 million in 1990, a 1980 to 19.2 million in 1990, a decline of 6%, probably as a result of decline of 6%, probably as a result of productivity gains.productivity gains.

U.S. exports of manufacturing goods U.S. exports of manufacturing goods grew by 90% between 1986 and grew by 90% between 1986 and 1992, compared with 25% for the 1992, compared with 25% for the rest of the OECD countries.rest of the OECD countries.

Page 29: The New Right and the Reagan Revolution

Results (3)Results (3) The U.S. raised its share of the The U.S. raised its share of the

world’s manufacturing exports from world’s manufacturing exports from 14% in 1987 to 18% in 1991.14% in 1987 to 18% in 1991.

In 1990, the U.S.’s share of world In 1990, the U.S.’s share of world manufacturing exports was the same manufacturing exports was the same as in 1975.as in 1975.

Page 30: The New Right and the Reagan Revolution

Results (4)Results (4) More than 18 million new jobs were created More than 18 million new jobs were created

in the 1980s in the U.S.—this was more than in the 1980s in the U.S.—this was more than Japan, Britain, and Germany combined.Japan, Britain, and Germany combined.

82% of the jobs created were high-pay, high-82% of the jobs created were high-pay, high-skill managerial and technical positions. 12% skill managerial and technical positions. 12% were low-skill service jobs.were low-skill service jobs.

While real wages declined from $11.41 per While real wages declined from $11.41 per hour in 1978 to $10.02 per hour in 1990, hour in 1978 to $10.02 per hour in 1990, workers’ total compensation increased as workers’ total compensation increased as workers demanded increased benefits.workers demanded increased benefits.

Page 31: The New Right and the Reagan Revolution

Results (5)Results (5) Reaganomics did not gut social welfare Reaganomics did not gut social welfare

programs. In fact, social welfare spending programs. In fact, social welfare spending was the largest cause of the budget deficits was the largest cause of the budget deficits of the Reagan administration.of the Reagan administration.

Outlays for means-tested programs rose Outlays for means-tested programs rose 19.7% from 1982-1989 (CPI adjusted). As a 19.7% from 1982-1989 (CPI adjusted). As a percentage of GNP, this is a higher rate than percentage of GNP, this is a higher rate than the Carter years.the Carter years.

Page 32: The New Right and the Reagan Revolution

Results (6)Results (6)U.S. Real Income Growth, 1983-1989

Quintile Real Income GrowthLowest 20% 11.1%Second 20% 10.1%Third 20% 10.7%Fourth 20% 11.6%Highest 20% 18.8%

Page 33: The New Right and the Reagan Revolution

Recession and ReboundRecession and Rebound

In 1982, the worst recession since the Great Depression occurred. In 1982, the worst recession since the Great Depression occurred.

Page 34: The New Right and the Reagan Revolution

Recession and ReboundRecession and Rebound

A recession occurs when GDP declines for two or more consecutive quarters.A recession occurs when GDP declines for two or more consecutive quarters. During a recession, production levels go down, the stock market is unhealthy, unemployment During a recession, production levels go down, the stock market is unhealthy, unemployment

rises, and consumer spending declines. rises, and consumer spending declines. By the middle of 1983, the economy made its recovery. By the middle of 1983, the economy made its recovery.

Page 35: The New Right and the Reagan Revolution

Defense Spending Defense Spending Increases Increases

One facet of Reagan's ideological One facet of Reagan's ideological outlook was the need to bolter outlook was the need to bolter America's defense capability.America's defense capability.

Despite vowing to dramatically Despite vowing to dramatically reduce taxes and government reduce taxes and government spending, the Reagan spending, the Reagan Administration increased military Administration increased military spending by over 50% between spending by over 50% between 1981 and 1988.1981 and 1988.

Reagan emphasized the Reagan emphasized the increasing military capability of increasing military capability of the USSR. He acknowledged the the USSR. He acknowledged the expense of the military buildup, expense of the military buildup, but insisted it was vital to but insisted it was vital to national security. national security.

Page 36: The New Right and the Reagan Revolution

Star Wars Star Wars In 1983, President Reagan In 1983, President Reagan

proposed his Strategic Defense proposed his Strategic Defense Initiative as an additional check Initiative as an additional check on Soviet nuclear capability. on Soviet nuclear capability.

Reagan envisioned space-based Reagan envisioned space-based missile defense technology missile defense technology capable of striking down capable of striking down nuclear weapons before they nuclear weapons before they reached the United States. reached the United States.

"Wouldn't it be better to save "Wouldn't it be better to save lives than to avenge them?"lives than to avenge them?"

The press derisively dubbed the The press derisively dubbed the plan "Star Wars", and many plan "Star Wars", and many believed it was infeasible due to believed it was infeasible due to the enormous expense and the enormous expense and technical innovation that it technical innovation that it would require to become would require to become operational.operational.

Page 37: The New Right and the Reagan Revolution

The Deficit and the The Deficit and the National DebtNational Debt

The hike in defense spending, and vastly reduced tax revenues The hike in defense spending, and vastly reduced tax revenues resulted in a skyrocketing federal budget deficit . resulted in a skyrocketing federal budget deficit .

By 1988, the interest alone on the national debt reached 14% of By 1988, the interest alone on the national debt reached 14% of the annual budget and the United States became the world's the annual budget and the United States became the world's biggest debtor.biggest debtor.

Reagan’s goal to balance the budget by 1984 became infeasible.Reagan’s goal to balance the budget by 1984 became infeasible.

Page 38: The New Right and the Reagan Revolution
Page 39: The New Right and the Reagan Revolution

Reagan’s Foreign PolicyReagan’s Foreign Policy

The Main IdeaPresident Reagan took a hard line against communism

around the world.

Reading Focus• How did President Reagan help to bring about the end of the

Cold War? • What foreign trouble spots persisted during Reagan’s

presidency?• How did the Iran-Contra Affair undermine the president?

Page 40: The New Right and the Reagan Revolution

President Reagan and the Cold WarPresident Reagan and the Cold War

In his first term, Reagan rejected the policies of In his first term, Reagan rejected the policies of containment and détente; he wanted to destroy containment and détente; he wanted to destroy communism.communism. Position worsened relations with the SovietsPosition worsened relations with the Soviets Forged bonds with like-minded leaders, including Margaret Forged bonds with like-minded leaders, including Margaret

Thatcher and Pope John Paul IIThatcher and Pope John Paul II Critics of his policy called Reagan recklessCritics of his policy called Reagan reckless

Reagan obtained massive increases in military spending.Reagan obtained massive increases in military spending. Much of the new spending went to nuclear weapons.Much of the new spending went to nuclear weapons. Promoted the Promoted the Strategic Defense initiativeStrategic Defense initiative (SDI)—a shield (SDI)—a shield

in space to protect the United States against incoming Soviet in space to protect the United States against incoming Soviet missiles.missiles.

Critics called this Star Wars and said it wouldn’t work.Critics called this Star Wars and said it wouldn’t work.

Page 41: The New Right and the Reagan Revolution

A Thaw in the Cold WarA Thaw in the Cold WarThe Soviet UnionThe Soviet Union

By the late 1970s the Soviet By the late 1970s the Soviet economy was shrinking.economy was shrinking.

Industrial and farm Industrial and farm production, population production, population growth, education, and growth, education, and medical care all fell.medical care all fell.

The Soviet Union started The Soviet Union started importing foodimporting food

Strikes in Poland led by Strikes in Poland led by Lech Lech WalesaWalesa highlighted Soviet highlighted Soviet weaknesses.weaknesses.

Walesa successfully forced Walesa successfully forced the Soviet-backed the Soviet-backed government to legalize government to legalize independent trade unions.independent trade unions.

He also led a new He also led a new independent union called independent union called Solidarity.Solidarity.

U.S.-Soviet RelationsU.S.-Soviet Relations A visionary leader came to A visionary leader came to

power in the Soviet Union—power in the Soviet Union—Mikhail Gorbachev.Mikhail Gorbachev.

Believed the only way to save Believed the only way to save the Soviet Union was to the Soviet Union was to strike a deal with the United strike a deal with the United StatesStates

Between 1985 and 1988 Between 1985 and 1988 Reagan and Gorbachev met Reagan and Gorbachev met four times and produced the four times and produced the Intermediate-Range Nuclear Intermediate-Range Nuclear Forces (INF) Treaty.Forces (INF) Treaty.

First treaty to actually First treaty to actually reduce nuclear arms reduce nuclear arms

INF TreatyINF Treaty destroyed a destroyed a whole class of weapons whole class of weapons (more than 2,500 missiles).(more than 2,500 missiles).

Page 42: The New Right and the Reagan Revolution

What foreign trouble spots persisted during What foreign trouble spots persisted during Reagan’s presidency?Reagan’s presidency?

Latin America—the United States supported several anti-Latin America—the United States supported several anti-Communist governments and rebel groups in the regionCommunist governments and rebel groups in the region

Lebanon—the United States was part of an international Lebanon—the United States was part of an international peacekeeping force that tried to halt the country’s civil peacekeeping force that tried to halt the country’s civil warwar

Grenada—Reagan sent 5,000 marines to invade the island Grenada—Reagan sent 5,000 marines to invade the island in order to stop a violent Communist coupin order to stop a violent Communist coup

South Africa—Congress overrode a Reagan veto and South Africa—Congress overrode a Reagan veto and passed the Comprehensive Anti-Apartheid Act to help end passed the Comprehensive Anti-Apartheid Act to help end apartheidapartheid in the country in the country

Page 43: The New Right and the Reagan Revolution

Upheaval in Latin AmericaUpheaval in Latin America• Violent civil war between Marxist guerrillas and

government troops supported by armed extremist groups

• Reagan administration supported José Napoleón Duarte—a moderate leader who won the 1984 election.

El Salvador

• U.S-backed Anastasio Somoza Debayle was ousted by the Sandinistas—a Marxist group.

• Reagan cut off aid to Nicaragua saying that the Sandinistas were backed by the USSR.

• Reagan then allowed the CIA to equip and train a Sandinista opposition group called the Contras.

• Congress cut off funds to the Contras and banned all further direct or indirect U.S. support of them.

Nicaragua

Page 44: The New Right and the Reagan Revolution

Lebanon• Muslim and

Christian groups waged a civil war.

• Israel invaded Lebanon to expel the PLO.

• U.S. sent 800 peacekeepers.

• A suicide bomber killed 241 marines.

• Reagan withdrew the troops.

Grenada• 1983 Communist

coup stranded 800 U.S. students.

• Cuba’s role and students’ safety concerned Reagan.

• Reagan sent in soldiers who took the island in two days with a loss of 19 soldiers.

Trouble Spots AbroadTrouble Spots AbroadSouth Africa

• Apartheid enforced legalized racial segregation.

• Reagan’s policy was one of “constructive engagement” with the white minority government.

• Congress overrode his veto and imposed trade limits and other sanctions.

Page 45: The New Right and the Reagan Revolution

The Iran-Contra AffairThe Iran-Contra Affair

Despite the Congressional ban on U.S. funds for Despite the Congressional ban on U.S. funds for the Contras war, Reagan’s national security staff the Contras war, Reagan’s national security staff sought to continue the funding.sought to continue the funding.

In 1985 National Security Advisor Robert In 1985 National Security Advisor Robert McFarlane persuaded Reagan to sell arms to Iran McFarlane persuaded Reagan to sell arms to Iran in hopes that Iran would help obtain the release in hopes that Iran would help obtain the release of U.S. hostages in Lebanon.of U.S. hostages in Lebanon. This violated a U.S. arms embargo.This violated a U.S. arms embargo.

Members of the National Security Council staff Members of the National Security Council staff then secretly diverted the money from the sale of then secretly diverted the money from the sale of arms to Iran to the Contras in Nicaragua.arms to Iran to the Contras in Nicaragua.

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The Iran-Contra AffairThe Iran-Contra Affair Vice Admiral John Poindexter and Lieutenant Colonel Vice Admiral John Poindexter and Lieutenant Colonel

Oliver North carried out the plan to divert arms sale Oliver North carried out the plan to divert arms sale money to the Contras.money to the Contras.

When the Iran-Contra affair came to light, Congress When the Iran-Contra affair came to light, Congress wanted to know if anyone higher up was involved.wanted to know if anyone higher up was involved.

Reagan admitted authorizing the sale of arms to Iran but Reagan admitted authorizing the sale of arms to Iran but denied knowing that the money was then diverted to the denied knowing that the money was then diverted to the Contras.Contras.

Full details of the affair are not known because the Full details of the affair are not known because the administration engaged in a cover-up of their actions.administration engaged in a cover-up of their actions. North admitted destroying key documents.North admitted destroying key documents. High-level Reagan staff members lied in testimony to High-level Reagan staff members lied in testimony to

Congress and withheld evidence.Congress and withheld evidence. North was convicted of destroying documents and perjury. North was convicted of destroying documents and perjury.

His conviction was overturned on technicalities.His conviction was overturned on technicalities.