Reagan's PresidencyReagan's Presidency

AP US HistoryAP US History

Mrs. MarshallMrs. Marshall

1980 Election1980 Election

Ronald Reagan and George Bush Ronald Reagan and George Bush

defeated Jimmy Carter in a landslide defeated Jimmy Carter in a landslide

victory. victory.

489 to 49 in electoral votes489 to 49 in electoral votes

Republicans gained control of the Senate Republicans gained control of the Senate and increased their number of and increased their number of representatives in the House.representatives in the House.

January 20, 1981January 20, 1981

Jimmy Carter released Iranian assets andJimmy Carter released Iranian assets and

the hostages were freed shortly afterthe hostages were freed shortly after

Reagan took the oath of officeReagan took the oath of office

March 30, 1981March 30, 1981

Ronald Reagan was shot in the chest byRonald Reagan was shot in the chest by

John W. HinckleyJohn W. Hinckley

Reagonomics/Supply-Side Reagonomics/Supply-Side EconomicsEconomics

The belief that the economy would be The belief that the economy would be stimulated and would recover quickest if stimulated and would recover quickest if the supply of goods increased. Because the supply of goods increased. Because Reagan backed policies and supported Reagan backed policies and supported corporate tax cuts designed to benefit corporate tax cuts designed to benefit producers, “Reaganomics” was a term producers, “Reaganomics” was a term used by his critics who thought his used by his critics who thought his economic plan was a mistakeeconomic plan was a mistake

Economic Recovery Tax ActEconomic Recovery Tax Act

This law provided budget and tax cuts that This law provided budget and tax cuts that structurally changed government policy.A structurally changed government policy.A 25% cut over 3 years25% cut over 3 years

Reagan abandoned the long sought after Reagan abandoned the long sought after Republican goal of a balanced budgetRepublican goal of a balanced budget

Government SpendingGovernment Spending

Congress passed the Budget Congress passed the Budget Reconciliation Act in 1981 cuttting $39 Reconciliation Act in 1981 cuttting $39 billion from domestic programsbillion from domestic programs

Reagan increased defense spending by Reagan increased defense spending by $12 billion.$12 billion.

December 1982 economy was December 1982 economy was experiencing a recession.experiencing a recession.

The FED began to lower interest rates The FED began to lower interest rates which along with lower inflation and more which along with lower inflation and more spendable income due to lower taxes spendable income due to lower taxes resulted in more business activity. resulted in more business activity. Unemployment rate fell to less than 8%.Unemployment rate fell to less than 8%.

Increasing RevenueIncreasing Revenue

Tax Equity and Fiscal Responsibility ActTax Equity and Fiscal Responsibility Act

Social Security benefits became taxable Social Security benefits became taxable incomeincome

Deficit Reduction ActDeficit Reduction Act

The deficit continued to increase.The deficit continued to increase.

Air Traffic ControllersAir Traffic Controllers

August of 1981August of 1981

Reagan fired over 11,000 air-traffic Reagan fired over 11,000 air-traffic controllers for staging what he called an controllers for staging what he called an illegal strikeillegal strike

This was a major blow to the power of This was a major blow to the power of labor unionslabor unions

DefenseDefense

Involved the re-building of the navy, Involved the re-building of the navy, modernizing the nuclear Air Force and modernizing the nuclear Air Force and implementing the Strategic Defense implementing the Strategic Defense Initiative (Star Wars)Initiative (Star Wars)

Led to big increase in the defense budget Led to big increase in the defense budget in 1985 (rose from $197 billion to $279 in 1985 (rose from $197 billion to $279 billion)billion)

Election of 1984Election of 1984

Reagan and Bush reelectedReagan and Bush reelected

Opposition- Walter Mondale and Geraldine Opposition- Walter Mondale and Geraldine FerraroFerraro

515-13 electoral votes 515-13 electoral votes

Affirmative ActionAffirmative Action

Controversial government program started Controversial government program started by Nixonby Nixon

Held to be constitutional by Supreme Held to be constitutional by Supreme CourtCourt

Benefited minoritiesBenefited minorities

Reagan and the US Supreme CourtReagan and the US Supreme Court

Sandra Day O’Connor-1Sandra Day O’Connor-1stst female female appointed to the courtappointed to the court

Associate Justice William Rehnquist was Associate Justice William Rehnquist was appointed Chief Justiceappointed Chief Justice

Antonin ScaliaAntonin Scalia

Anthony KennedyAnthony Kennedy

USSRUSSR

Mikhail Gorbachev-leader of the USSR Mikhail Gorbachev-leader of the USSR who initiated the radical policies of who initiated the radical policies of openness and restructuring.openness and restructuring.Gorbachev and Reagan meet in 4 Gorbachev and Reagan meet in 4 summitssummitsThese changes and economic collapse of These changes and economic collapse of Communist nations in Europe paved the Communist nations in Europe paved the way for the fall of communism in the SU way for the fall of communism in the SU ans its satellite nations.ans its satellite nations.

Berlin Wall came downBerlin Wall came down

Cold War was essentially overCold War was essentially over

A few years after the wall came down the A few years after the wall came down the USSR dissolvedUSSR dissolved

Many credited Reagan with ending the Many credited Reagan with ending the Cold WarCold War

PLOPLO

Palestine Liberation OrganizationPalestine Liberation Organization

They used southern Lebanon to launch They used southern Lebanon to launch attacks on Israelattacks on Israel

Lebanese government could not stop Lebanese government could not stop operationsoperations

June 1982, Israeli forces marched across June 1982, Israeli forces marched across the border into Lebanon and pushed the the border into Lebanon and pushed the PLO back to the capital city of BeirutPLO back to the capital city of Beirut

Caused tension between Israel and the Caused tension between Israel and the USUS

At request if Israel, a multinational At request if Israel, a multinational peacekeeping force arrived in Beirut to peacekeeping force arrived in Beirut to supervise the evacuation of the PLOsupervise the evacuation of the PLO

Violence broke out following the Violence broke out following the assassination of the Lebanese presidentassassination of the Lebanese president

Israeli forces withdrew, Lebanon on the Israeli forces withdrew, Lebanon on the verge of a civil warverge of a civil war

Oct. 1983, 241 people died when a suicide Oct. 1983, 241 people died when a suicide bomber drove car into barracks of US bomber drove car into barracks of US Marines who were part of a peace keeping Marines who were part of a peace keeping missionmission

1984 the multinational peacekeeping force 1984 the multinational peacekeeping force left Beirutleft Beirut

Iran-Contra AffairIran-Contra Affair

Scandal during the Reagan presidency in Scandal during the Reagan presidency in which the US arranged to secretly sell which the US arranged to secretly sell arms to Iran and use the profits to fund arms to Iran and use the profits to fund and support the Contras in Nicaraguaand support the Contras in Nicaragua

Nicaragua was ruled by a pro-Soviet Nicaragua was ruled by a pro-Soviet government know and the Sandinistasgovernment know and the Sandinistas

To counter the Sandinista we supported To counter the Sandinista we supported the rebels-the Contrasthe rebels-the Contras

Congress found out-cut off fundingCongress found out-cut off funding

Some in Reagan’s administration found Some in Reagan’s administration found other means to help the Contrasother means to help the Contras

In exchange for helping secure the release In exchange for helping secure the release of hostages held in Lebanon, the US of hostages held in Lebanon, the US secretly sold arms to Iransecretly sold arms to Iran

Did little to help win release of hostages-Did little to help win release of hostages-big scandalbig scandal

Oliver North-a Marine colonel who had Oliver North-a Marine colonel who had been the key figure in making the been the key figure in making the arrangements took most of blamearrangements took most of blame

Reagan claimed he had no knowledge of Reagan claimed he had no knowledge of the arrangement-no evidence was the arrangement-no evidence was produced to suggest that he did produced to suggest that he did