US Studies1980S AMERICA

1980s part oneCONSERVATISM

Issue Liberal Viewpoint Conservative Viewpoint

Role of Government in the Economy

MORE government involvement (social programs; business regulations)

LIMITED government (lower taxes, less business regulations) to stimulate the economy (Free Market)

Foreign Policy International diplomacy and multilateralism

Rely on our military and acting unilaterally

A CONSERVATIVE ERA

Why?• The Federal Government had gotten too big and

powerful• This deterred economic growth• Social programs (especially welfare) were NOT

working• This deterred individual initiative• Ronald Reagan’s Inauguration

National values have degraded (Counterculture)

Families had broken up (Women’s Movement)

Abortion was now legalOrganized religion in declineTaxes and debt had risen (Vietnam and

Great Society)Civil Rights Movement had “gone too

far” (Affi rmative Action)

WHAT’S WRONG WITH LIBERALISM?

1980s part twoREAGAN PRESIDENCY

Backlash favored Reagan

Bad economy helped too: “Are you better off now than you were four years ago?”

Carter Administration was inept (Hostage crisis)

Charismatic; Great Communicator

Spoke of America’s greatness

REAGAN’S ELECTION

1980 ELECTION

Step One: EconomySupply-Side: Tax Cuts for all Americans; most for wealthiest

Stimulate economy & create jobs

Balance the budget (cut spending)

Lots of deregulationResult: deep

recession at first

,

REAGAN REVOLUTION

Economy improved by 1983: Inflation down GNP up Incomes increased Employment rose

But… Homelessness up Poverty increased Record budget deficits Savings & Loan

scandal

ECONOMIC TURNAROUND

Largest peacetime military spending (make USSR bankrupt)

SDIGrenada (1983)

InvasionNicaragua (1983)

support ContrasResult: US begins

to forget Vietnam

MILITARY ACTIONS

Air Traffi c Controllers—illegal to go on strike (13,000 did)

$10,000 raise/32-hour week

Reagan—two days to return

Fired them: “I meant what I said”

TAKE NO PRISONERS

UNBELIEVABLE POPULARITY

Civil Rights—African-Americans elected to offi ce; MLK Day—national holiday

Renewed patriotism (Statue of Liberty; 1984 Olympics)

AIDSManufacturing jobs goneEntitlements still around (Social

Security, Welfare, Medicare)

OTHER 80S ISSUES

1980s part three

GEORGE H. W. BUSH

1988 Election: very nasty

Bush presidency focused on foreign policy

“Read my lips, no new taxes…”

Persian Gulf War (tomorrow)

Economy faltered (downsizing)—lost‘92)

BUSH PRESIDENCY