The 1980sThe 1980s

Dealing with the Soviet UnionDealing with the Soviet Union

• ~ Policy of containment ~ Policy of containment • ~ More aggressive approach towards ~ More aggressive approach towards

dealing with the Soviet Uniondealing with the Soviet Union• ~ First Reagan accepted the ~ First Reagan accepted the • possibility of working with thepossibility of working with the• Soviet Union in the interests Soviet Union in the interests • of peace.of peace.

Reduce Nuclear warheads

~ 1982-Reagan and Soviet Union began strategic arms reduction talks-reduce each country’s nuclear warheads by one third

~1985-Fireside Summit in Geneva ~1987-Washington Summit

Star WarsStar Wars ~1983 Reagan delivered a national televised ~1983 Reagan delivered a national televised

speech proposing the speech proposing the Strategic Defense Strategic Defense Initiative (SDI)Initiative (SDI) to protect the United States to protect the United States from Soviet missiles. from Soviet missiles.

~Media called this plan ~Media called this plan ““Star warsStar wars””

http://www.youtube.com/watch?v=2U8cHjCBDFc

The Outcome ~ “Arms race”~ 30 Billion dollars~ The U.S economy was able to support all of the

spending and building~ The Soviet Union economy was unable to

support the spending … economy collapsed.

Collapse of the Soviet union •The liberalization of the people led to

some nationalist movements that caused ethnic disputes

•More pressure was put on Gorbachev to give greater freedom to the people

•The Soviet Union was renamed Russia, and Russia now had the control of its nuclear weapons. It marked the end of a Marxist Leninist gov’t. The only two countries with this type of government were Cuba and North Korea

Collapse of the Soviet Union – continued • The Soviets underestimated the degree to

which non Russian ethnic groups would resist being assimilated into a Russian State

• Additionally their economy was devastated from the fact that they used a ton of money to compete with the United States in a nuclear arms race. The people were not happy about this

• Third the people did not like communism and never truly adopted it in their hearts

• When Gorbachev decided to finally let the people speak their minds they let out a ton of pent up anger, demanding change immediately

Presidents –part one

•Jimmy Carter •Created two new departments: the

department of education and the department of energy

•Won a Nobel peace prize for solutions to international conflicts, and promoting human rights

Presidents – part two

•Ronald Reagan •Well known for his significant

improvement of the economy, popularly known as Reaganomics

•His defense policies contributed to the downfall of the Soviet Union

•He is ranked as one of the most popular presidents of all time

Presidents – part three

•George HW bush •Was dedicated to lowering the national

debt •Signed many bills helping the

environment and promoting cleaner air •Tried to run a second time but was

defeated by bill Clinton

Reaganomics

Source: University of Connecticut/various government websites

The Economic Problems

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

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

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

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

What Reagan Faced:Defense Issues• Defense spending had declined from 9.6% of GNP in

FY1962 to 5.5% of GNP in FY1981, a decline of 43%.• More of the defense spending in 1981 was directed

toward salaries and pensions than in 1962.• CIA reports showed that defense expenditures in the

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

• Reagan’s solution…..Reaganomics

What is Reaganomics?• Based off of supply-side economics,

Reaganomics sought to stimulate the economy through tax cuts and deregulation. The idea was to provide heavy income tax cuts to the wealthy, enabling them to invest in companies and create businesses/jobs.The government began to eliminate federal regulations on things such as drilling for oil and gas, as well as restrictions on coal mining. By reducing governmental interference and controlling the money supply there would be an explosion of economic growth.

Reagan’s FY1982 Budget Proposal

Reagan’s Proposal ERTA (What He Got)

1 30% cut in personal taxes 25% cut in personal marginal tax rates

2 Accelerated depreciation for capital in business

Got it!

3 9% increase in defense spending per year for 5 years

Got it!

4 $50 billion cut in non-defense spending in 1982, growing to $100 billion in 1986

No!

5 Additional cuts of $30 billion in 1983, $40 billion in each of the next 3 years

No!

6 Indexing of personal exemptions and brackets, starting in 1985

7 Elimination of the “marriage penalty”

All of the following were part of Reaganomics EXCEPT

A. cuts of benefits from Medicare and Social Security to seniorsB. a dramatic reduction in personal income taxesC. deregulation of business and industryD. tough stand against federal labor unionsE. the theory of supply-side economics

Results• Despite the tax cuts of 1981, federal tax

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

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

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

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

Results•Domestic-based manufacturing

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

•U.S. exports of manufacturing goods grew by 90% between 1986 and 1992

Results

•The U.S. raised its share of the world’s manufacturing exports from 14% in 1987 to 18% in 1991.

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

Results • More than 18 million new jobs were created

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

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

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

Results • The tax breaks and deregulation only "trickled

down" to reach the upper and middle-class citizens and, due to the cuts in social welfare programs and the like, the very poor suffered and grew poorer. On the other hand, the income of the very rich more than doubled during the 1980s due to the largest reduction of taxes. Additionally, the decline of power of labor unions led to decreased wages.

Results

U.S. Real Income Growth, 1983-1989

Quintile Real Income Growth

Lowest 20% 11.1%

Second 20% 10.1%

Third 20% 10.7%

Fourth 20% 11.6%

Highest 20% 18.8%

Was “Reaganomics” successful in stimulating the economy? • In a very narrow sense, yes, the policy of

Reaganomics did stimulate the economy in lowering the unemployment rate (7% to about 5%) as well as the inflation rate (10% to 4%); however, the public debt rose to 2.6 trillion dollars from less than a trillion and caused a lot of other problems as well. The lack of deregulation caused the savings and loan industry to collapse under fraud and mismanagement and the failures in the airline industry increased prices for consumers.

1980s Music

•Pop•Rock•Pop Metal•Alternative Rock•Soft Rock / Singer Songwriter•Electronic

Pop•Teen Pop acts

▫New Kids on the Block, Debbie Gibson, Tiffany, Tommy Page, New Edition, Stacey Q, The Bangles, Olivia Newton-John, and others

▫Cyndi Lauper voted the “Voice of the MTV Generation”

•Prominent American Urban pop acts▫Tina Turner, Lionel Richie,

Whitney Houston, and Deniece Williams

Pop: Michael Jackson•1980s was the

reinvention of Michael Jackson

• In 1984 he won:▫ 7 Grammys &▫8 American Music

Awards•The Award of Merit

▫youngest artist to ever receive the award

Pop: Michael Jackson

•November 30,1982 release of Thriller▫Best selling album of all-time▫Reported to have sold as many as 110

million copies worldwide.•August 31,1987 release of Bad

▫Sold over 30 million copies worldwide, Only 8 million of those copies went to the

United States.▫Album had 5 songs to reach number 1 on

the Hot 100, the first album to ever do so

Pop: Madonna•November 12, 1984

release of Like a Virgin▫First number 1 album and

was a commercial success▫Considered to be a part of

teen pop’s first wave in the music industry

▫Album sold 21 million copies worldwide, 10 million in the United

States

Rock

•Starting in 1983 and peaking from 1986-1991 the music industry saw a boom in hard rock.

•Some bands▫Queen, Def Leppard, Motley Crue, Bon Jovi,

Quiet Riot, Europe, Twisted Sister, Van Halen, and others

Rock

•Many bands from the rock trend of the 1970s carried over into the 1980s as well including▫Styx, Rush, Journey, Foreigner, REO

Speedwagon, ZZ Top, and Aerosmith•Thrash Metal also broke out into the

mainstream with▫Metallica, Slayer, Anthrax, and Megadeth

Hip Hop / Rap “The Golden Age”•The 1980s marked a big change in the

Hip Hop genre. More sub-genres were created, while innovative styles of music were founded.

•“When it seemed that every new single reinvented the genre.” –Rolling Stone

Hip Hop / Rap

•Some popular rap and hip hop artists▫Grandmaster Flash and the Furious Five,

Run DMC, Public Enemy, N.W.A., Eric B. & Rakim, LL Cool J, Beastie Boys and others

•Gangster Rap is often credited to N.W.A. and Ice T▫1986 release of “6 in the Mornin”▫1988 release of Straight Outta Compton

and the controversy of the song “F*** Tha Police”

Hip Hop / Rap

•Beastie Boys▫Original group consisted of 4

members as a hardcore punk band Michael Diamond, Adam Yauch,

John Berry*, Kate Schellenbach*, and later Adam Horovitz

•Adam “MCA” Yauch▫August 5, 1964 – May 4, 2012

Died after a 3 year battled against throat cancer

Woman Fashion

~MadonnaMadonna~Lace~Big tops~Leggings~Big hair

AerobicsAerobics http://http://www.youtube.comwww.youtube.com/watch?/watch?v=Yh_XgYuCZ28v=Yh_XgYuCZ28

Tanning Tanning

Men Fashion

~Big Pants~Big Shirts~Big hair (mullets)

MTVMTV~Started in 1981~Big impact on the Music industry

-Music~Slogans “I want my MTV”

http://www.youtube.com/watch?v=9tkpoeF9a2s

Cable TVCable TV~ABC, NBC, CBS~1985 68% of all American Household

had cable~Soap operas (Guiding light)~Full house (1987-1995)~The Crosby Show~Golden Girls~Happy Days

Popular Movies

~The Breakfast Club~Rain Man ~E.T~Back to the Future~http://www.youtube.com/watch?v

=dkX8J-FKndE

1980 Summer Olympic boycott•December 24, 1979 Soviet

Union’s 40th army was deployed into Afghanistan

•Carter gave the Soviet’s an ultimatum to leave Afghanistan in 1 month or the United States would boycott the Moscow Summer Olympics

1980 Summer Olympic boycott

•Other countries joined the United States including:▫Japan, West Germany, China, the

Philippines, Argentina, and Canada▫Some countries allowed their athletes to

decide if they wanted to compete▫Remaining countries competed in the

Olympic Boycott Games in Philadelphia

Sports

•Michael Jordan- “Air Jordan” received his nickname from the dunks he preformed from the free throw line

•Averaged almost thirty points per game•Wowed everyone with his ability •Widely considered to be the best player to

live•Brand of Air Jordans

Sports

•US Hockey underdogs defeat the Soviets during the Cold War

•Source of pride for the Americans•A “blow” against communism•http://www.youtube.com/watch?

v=n2VVCRJ-688•Movie “Miracle on Ice”

Sports• Wayne Gretzky began his career in 1979 and

reached his prime during the 1980s• Called the “Great One”• The hockey equivalent of Michael Jordan • Known for “Gretzky’s Office” behind the net• Gretzky captured nine Hart Trophies as the most

valuable player, ten Art Ross Trophies for most points in a season, five Lady Byng Trophies, five Lester B. Pearson Awards, and two Conn Smythe Trophies as playoff MVP.

• Also four Stanley Cup Championships during this time

• www.youtube.com/watch?v=XFX0dVXNDXw

Compact discs

•The first device that could store large amounts of information

•By 2007 over 200 billion have been sold

The Internet

•Was a small scale Computer Network, however the average person could add to it

•As people continued to add to it, it became what is known as the modern Internet

Windows operating system

•Started out as a simple set of software and items such as a calculator, calendar, card file, clipboard viewer, clock, control panel, notepad and a primitive word processor known as “write”

•Obviously became very successful over time

First cell phones

•First commercially available cell phone was introduced by Motorola

•It was dubbed “the brick” because it weighed 2 pounds

•It had just ½ hour of talk time per charge •It cost $3995•It could not do anything except talk

CNN

•First news story was about seven people dying from food laced with potassium cyanide

•It’s sensational stories have made it extremely popular

•Second most popular news network - behind yahoo news

Disposable contacts

•Created because people found them more comfortable than wearing glasses

•Even people with the eye problems managed to use them with little discomfort

•Very popular with people who think they are ugly when wearing glasses

Human genome project • International project to figure out the sequence of

chemical base pairs which encode humans • There are approximately 20,000 to 25,000 genes in

the human body • They have found that only about 8% are relative

and individual, the other 92% are standard in every human. So we are all 92% the same and only 8% different

• The Supreme Court has ruled that it is possible to patent gene sequences because it is possible to make a manmade bacteria. Therefore it is possible for corporations or people to own the very sequence of genes that make up the human body

Just say no

•A movement in the eighties and early nineties which was created to stop children from participating in recreational drug use

Medicare • The government’s Health Care System that is

different from privatized Health Care in the sense that it does not manage individual risk portfolios

• Many people are critical of the Medicare program due to the fact that it costs I and wonderful check this out boy the way extreme amount of money to the taxpayers

• The republicans often oppose this gov’t program as it benefits people of lower income levels more than people of higher income levels, they say it takes people’s initiative away and they will just try to get the gov’t to pay for their laziness and unwillingness to save money

• Democrats say it is necessary because many poor people would die without this program

Drug use in the 1980s •In 1985 1/3 Americans reported that they

had tried or used marijuana at some point in their lives

•It was estimated in the 1980s that crack was more of a problem than alcohol despite the fact that many more people were abusing alcohol than crack

•President Reagan signed the anti drug abuse act of 1986. This imposed a minimum sentence for people using drugs, including marijuana

The Vietnam memorial

•It receives around three million visitors each year

•It holds about 58,000 names on it •It is described as “ a wound that is closed

and still healing” •Some call it a “wall of shame” because the

U.S. Is often criticized for not finishing the war

The Exxon Valdez Oil spill • An oil tanker with 119,000 meters cubed of crude oil

struck a reef as it was traveling to California • This was the largest oil spill in history, before the

2010 deep water horizons spill caused by BP – Which released 780,000 meters cubed of crude oil

• It is ironic because this reef was about the worst place to dump crude oil in terms of habitat destruction

• It was also ironic because the titanic incident set a standard for all ships to have monitoring equipment that could detect large objects in the way of ships

• Exxon Valdez spent two billion dollars to clean up the spill and another one billion to settle charges

• The spill affected the wildlife of Alaska so much that one former mayor of a town near this spill commit suicide

Sandra day O’connor

•First female supreme court justice •It was controversial because the people

thought she would not be as good of the judge as the man

•She quoted that because the job of a judge is to be impartial she would just be following the job description

•Cartoon is on page 1050 of textbook, yes its is a little blurry.