THE REAGAN REVOLUTION

The Resurgence of Conservatism 1980-1992:

Introduction

Reagan’s Administration 1980 - 1988Backlash of Nixon scandals and

Carter’s unpopularityConservative shift in American

politicsEnd of the Cold WarTurmoil in the Middle East and the

BalkansWhite House Scandals

Conservative Political Shift: New World Order in 1980’s

Conservative Cultural Trends in the 1970’s Reaction to polarizing effect of 1960’s and

counterculture Roe vs. Wade 1973

Mobilized conservatives = right to life movement

Feminism and the Conservative Backlash

The Moral Majority

Religious Right becomes stakeholder in right wing politics Republican party embraces evangelical Christian

groups in America Jerry Falwell, Christian radio & megachurches

1980 Election: Triumphant Return of Conservatism

Reagan won solid Democratic constituencies in the South

Over half white & blue collar workers in those States

Reagan took advantage of rise of conservative sunbelt states

Called for return to traditional values

Responded to voter concern re economy (stagflation of 1970’s)

Election of 1980• Carter was in a horrible spot

o "ABC" (Anybody But Carter) Movement in the Democratic party

• Reagan ran on:o being a fiscal and social conservativeo a return to small governmento reversing the New Deal and Great Society effect on

gov'to being staunchly anti-Communist

o Video: Reagan’s inaugural address

Reagan’s Domestic Agenda

Federal Income Tax Cuts and Federal Domestic Spending

Savings & Loans deregulatedEnvironmental legislation loosenedHard line on Labor unions

(Air Traffic controller strikersfired and replaced by non-unionWorkers)

Reagan and the Economy

Federal Reserve Board cuts interest rates = lowering inflation

Recession continues into 1982 but recovery begins in third quarter

Blue line is Percent Change From Preceding Period in Real Gross Domestic Product (annualized; seasonally adjusted)

Red line is Average GDP growth 1947–2009 Data is from the Bureau of Economic Analysis.

Economic Growth in U.S. Late 1970’s to Early 1980’s

Reagan and the Economy

Wall Street Frenzy: Illegal and Unethical financial dealings

Stock market crash 1987, reducing paper stocks by 20% overnight

BUT stock market recovers quicklyReagan’s legacy of soaring trade deficit

Reagan and the Supreme Court

Reagan begins to reshape the Supreme Court

Appoints 1st female member: Sandra Day O’Conner

Antonin Scalia Anthony Kennedy

The Reagan Revolution

• The Reagan Revolutiono The return of conservatismo A reaction to big government and social

engineering (New Deal/Great Society)

• "Best of the Rightest"

• Small Gov't Policieso Cut social programso Raise defense spendingo Supply Side Economicso Tax cuts

Reagan cuts taxes 25% over three years

Reagan and Supply-Side Economics

• Reaganomicso The idea is that cuts in

taxes would create economic growth that would bring in more tax revenue Budgetary restraint is

necessary as well Controversial: some

argue that Reaganomics benefited the wealthy while squeezing the middle class and the poor

The Cold Warrior

• Evil Empireo Soviets were

"prepared to commit any crime, to lie, to cheat"

o Soviet Union is "evil empire" and "the focus of evil in the modern world"

Reagan and Military Spending

o Under Reagan massive military spending led to large deficits (deficit spending) Reagan added $2 trillion to the

national debt

Spending higher in late Cold War under Reagan than during Vietnam War era

Military... Too Big or Too Small

New Arms Race Reagan in essence

used deficit spending to bury the Soviets in a new arms race SDI or Star Wars

scared the Soviets and gave Reagan a huge advantage

All arms negotiations ended

Strategic Defense Initiative aka Star Wars

Military build-up leads to grassroots nuclear freeze movement

Consequence: Mobilization of Opposition

1984 Election

Mondale Ferraro Democratic ticket 1984

US Presidential elections 1984Reagan re-elected with 59% of popular vote

The Teflon President

• Marine Barracks bombing in Beirut (1983)o killed over 200

Marineso American troops

were pulled out after this

o Weapons were sold to Iran (the “enemy”) in return for the Iranians help in releasing hostages held in the Middle East Money made was then given

to the Contraso Reagan claimed to not know

anything Claimed his subordinates

were to blameo Despite this Reagan

remained popular

Iran-Contra Scandal (1985)

Reagan and the End of the Cold War

• Reagan and Gorbachevo Gorbachev sought an end to the

Cold War because the Soviets could not afford the military spending

o Glasnost & Perestroika were meant to revive the Soviet economy

o Nuclear Summit Meetings Banned a certain type of offensive

nuclear missiles

Reagan's Humor

Tear Down this Wall Speech, 1987Brandenberg Gate, Berlin

Reagan’s Legacy

Mixed Domestic Record Improved economy ≠Soaring federal deficits Exploited white middle class anxieties

His critics saw his administration as interlude of nostalgia + drift to conservatism

Reagan’s admirers praised him for reasserting the values for self-reliance & free

enterprise Criticizing governmental excess Restoring national pride

Polarizing figure between Conservatives and Liberals

New World Order-1988 - Conservatism Continues

Democratic Candidate 1988

1988 Presidential election resultsBush 54% of popular vote

Dukakis inarticulate and accused of being light on crime- very few issues discussed – photo ops election

Democrats retained majority in Congress

George H. Bush’s Administration

End of Cold War Fall of Berlin Wall September 1989 Reunification of Germany Baltic Republics declared their independence from

USSR 1991 Signs a nuclear arms treaty reducing arsenal

by 25%

Domestic Troubles

Saving and Loan Scandalin 1980’s

1

•Saving and Loan Banks (S & Ls) make loans to individuals

2

•Reagan administration deregulates S&Ls allowing them to make riskier investments

3

•Officials at some S&Ls take advantage of new laws by making risky real estate investments, hoping for huge profits

4

5

6

• Real estate markets cool down in late 1980s S&Ls lose $2.6 B from people’s savings accounts

• Because bank accounts are insured by the government, taxpayers have to make up for the billions of dollars lost

• Several S&L officials are prosecuted for their role in the scandal and their efforts to cover it up

Increasing Debt: S&L bailout, Gulf War, medicare, medicaid payments

1990 Recession HitsSales fallTax revenue fallsUnemployment climbsAdditional 2 million Americans sink below

poverty line homelessness

1992 LA RiotsDeep-seeded social maladiesPoverty and anger worsen in inner-citiesBegan in black neighborhoods after

overthrow of conviction of police officers in R. King case

1989 Exxon Valdez Oil spill

Ruined 600 acres of pristine Alaskan coastline

EPA (Environmental Protection Agency) Report on Air Quality

Report Released – pronounces air in more than 100 U.S. cities hazardous to breathe

Bush administration ignores these environmental problems

Continues oil exploration &drilling in Alaska

Undermines global treaties on global warming (Kyoto) & mining in Antarctica

BUT signs the 1990 Federal Clean Air Act

Social Legislation

Bush also signs the American Disabilities Act

wide-ranging civil rights law that prohibits, under certain circumstances, discrimination based on disability

1992 Election Clinton vs. Bush

3rd Party: Ross Perot: 18.8% of popular vote, 1st time since Teddy Roosevelt