The Reagan Years

The Rise of Reagan

Hollywood Actor, President of Screen Actors Guild

Testified about communism before the House Un-American Activities Committee

Originally a Democrat and supporter of New Deal Switched because of communism

1966: Governor of California after gaining popularity with a 1964 pro-Goldwater speech

Election of 1980

Reagan stances High taxes and government regulations hurt economy Promised to cut taxes Increase defense spending Ban abortions

Asked voters if they were better off than they were 4 years ago

The Votes Are In!

Domestic Policies

Reaganomics Monetarists: raise interest rates Supply-Side economics: lower taxes and

deregulate economy Reasons:

High taxes took money from investors Lower taxes=more capital=more investments

25 percent tax cut

Critics said it would help corporate America and wealthiest Americans but little wealth would “trickle down” to middle or lower classes

Domestic Policies (continued)

Cutting programs necessary due to budget deficit Amount of money that expenditures exceed income

Example (Spending: 100 billion; Taxes: 75 billion; Deficit: 25 billion)

Social programs such as food-stamps, school-lunch program, Medicare, unemployment, student loans, and housing programs

Cutting programs and military spending more important than balancing the budget

Domestic Policies (continued)

Deregulate the economy End price controls on oil and gasoline FCC stopped regulating cable National Highway Traffic and Safety Administration

reduced requirements for air bags and higher fuel efficiency for cars

Deregulated airlines (started by Carter), EPA, other programs

Successes? Oil prices fell Price wars in airways

Supreme Court becomes Conservative

Sandra Day O’Connor (first woman in SC)

William Rehnquist

Antonin Scalia

Robert Bork (confirmation rejected by Senate)

Anthony Kennedy (moderate, selected after Bork)

Reagan v. Communism

End of containment and détente

Soviet Union=Evil Empire

US does not negotiate or contain evil, we defeat it

Peace Through Strength

Military Build Up

Cost about $1.5 trillion over 5 years

Rationale: Soviet response would put pressure on their economic system that it would reform or collapse Believed defense spending would cause communism

to fail

Peace Through Strength (continued)

Anti-terror movements Libyan air attacks kill 37 and

injure 200 after Berlin bombing

Economic impact New jobs Deficit grows by 150% to $200

billion

Reagan Doctrine

Support anti-communist guerrilla groups Afghanistan: mujahadeen rebel support

Carter sent $30 million, Reagan $570 million Soviet invasion hurt USSR economy and they withdrew

Nicaragua Sandinistas overthrow pro-American dictator Reagan sent money to anti-communist Contras

Grenada US soldiers defeat Marxist rebels

Iran-Contra Scandal

Congress prohibited aid to Nicaraguan rebels

Reagan admin. illegally supported rebels Sold weapons to Iran (enemy, terrorism-supporter) in

exchange for hostages captured by Hezbollah Money from sells went to contras (Nicaraguan rebels)

Oliver North, aide to National Security Council, testified and admitted to cover-up. Reagan gave approval on the sale to Iran, but no

evidence found that he was aware of redirected funds to contras

Arms Control

Reagan placed missiles in Western Europe to counter Soviet build-up in Eastern Europe

Push for “nuclear freeze” End of deployment of new nuclear

missiles

Strategic Arms Reduction Talks (START) Talks to cut missiles on both sides

in half Soviets refused and walked out

Star Wars

Reagan disagreed with nuclear deterrence Idea that you deter another from attacking you

because of your weapons Mutual assured destruction: as long as US and USSR

could destroy one another with nukes, neither will use them

Strategic Defense Initiative (SDI) Development of weapons that could intercept

and destroy incoming missiles “Star Wars”

SDI in Action

Mikhail Gorbachev

1985: New Leader of Soviet Union

Resumes talks with US on arms control

Pro-economic reform

Negotiated with Reagan Give up SDI, we give up nuclear build-up Several summits

US-Soviet Relations Improve

Reagan doubted Gorbachev’s reform promises Most Americans welcomed idea of better relations

Dec. 1987: Intermediate Range Nuclear Forces Treaty Called of destruction of nuclear weapons Ended Soviet military spending race, opened up

reforms to USSR

Economic boom, strong military, and better relations with USSR as Reagan’s term ends