REAGAN

The New Right and the Reagan Revolution

Sandistas- Ruling group who Reagan feared would spread Marxism to the US.

Contras- CIA trained and armed guerillas to oust the Sandistas

• Against US policy of getting involved in foreign affairs
• Secretly sold arms to Iran and then sent money to Contras.
• Felt that it would lead to the release of American hostages in Lebanon by pro-Iranian terrorists.
• Congress puts a stop to this and lieutenant colonel Oliver North took the blame.
• Reagan claimed no knowledge of the operations.

IRAN-CONTRA AFFAIR

• Vice President was George Bush
• 40th President of the United States.
• Served 2 terms
• On March 30, 1980 John Hinckley tried to assassinate him
• Restore Christian values
• Reaganomics
• Tax Cuts
• Iran Contra Affair
• Berlin Wall

Presidency

Tax Cuts-

• 1982 and 1983- 10%
• 1986- Largest tax reform in history
• reduced number of tax brackets
• Rich benefited as the tax rates on the highest incomes dropped from 70% in 1980 to 28% after the reform

• In 1983, President Reagan proposed his Strategic Defense Initiative (SDI) as an additional check on Soviet nuclear capability.
• Reagan envisioned space-based missile defense satellite shield to intercept incoming Soviet missiles.
• Military spending increased by over 50% between 1981-1988
• The press derisively dubbed the plan "Star Wars", and many believed it was infeasible due to the enormous expense and technical innovation that it would require to become operational.

Changing Government

Deregulation- Lifting government controls

• Energy, transportation, banking

Challenged Unions

• Professional Air Traffic Controllers Organization (PATCO)
• Called a strike for higher wages
• Threatened to interrupt travel across US
• Reagan gave the 13,000 strikers 2 days to return to work
• When most didn't return, he fired them!
• Showed the country he means what he says.

Cut size of government

• went against what welfare is based: government should help people who could not help themselves.
• Reagan believed government had been too intrusive in people's lives.
• reduced unemployment compensation, lowered welfare, reduced food stamps

• Also known as supply-side economics
• Cutting taxes to businesses will put more money into their hands which will in turn create more jobs and lead to more goods being produced.
• Businesses investing in themselves
• Cut $747 Billion over 5 years. Largest tax cut in history.

Reaganomics

Assassination Attempt

Military Buildup

$1.1 Trillion spent over 5 years

• Weapons and technology
• Missiles, nuclear submarines

Middle East

• Lebanon- Sent troops to Beirut for peacekeeping.
• Terrorist truck loaded with explosives crashed through the gate of a Marines barracks killing 241 soldiers.

Libya- General Qaddafi sponsored terrorist attacks on American and Israeli targets in Europe.

• West Berlin bomb triggered attacks on Libya

Foreign Policy

Election of 1980

Task

Economy Under Reagan

1981-1982- Recession due to manufacturing losing ground to foreign countries

Farm Crisis- Price of Wheat/Corn drops dramatically putting America's farmers into debt.

Unequal Wealth-Net Worth of 400 richest Americans nearly tripled during Reagan years. There were 1.5 million millionaires by 1989.

• Average income of top fifth American households rose 23% ($93,225 to $114,912) while bottom fifth rose only 4% ($9,075 to $9,433).

• Born 1911 in Tampico, Illinois
• Served in WWII
• Actor who appeared in more than 50 movies
• Governor of California
• Oldest President elected at age 69
• Only President to ever be divorced