Goal to understand that Reagan s philosophies led to specific policies that had intended and unintended consequences. To understand that there was a

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1 RAH Day 32 Agenda Goal to understand that Reagan s philosophies led to specific policies that had intended and unintended consequences. To understand that there was a continuation of the culture wars that affected policy 1. Complete p 3 about Reagan s domestic policies - video 2. Foreign policy p Social conservatism in the 80 s Complete p 18 and review p 17

2 1/1/ /1/1970 7/1/1971 4/1/1972 1/1/ /1/1973 7/1/1974 4/1/1975 1/1/ /1/1976 7/1/1977 4/1/1978 1/1/ /1/1979 7/1/1980 4/1/1981 1/1/ /1/1982 7/1/1983 4/1/1984 1/1/ /1/1985 7/1/1986 4/1/1987 1/1/ /1/1988 7/1/1989 4/1/1990 1/1/ /1/1991 7/1/1992 4/1/1993 GDP in $2000 Conservative Policies of Reagan - Economy Reagan s Philosophy Policy proposals Consequences Pro-growth = in favor 9000 of helping business Need 8000 a macro economic plan 7000 Need tight money to fight 6000 inflation People 5000 need to be selfreliant and gov t should 4000 not help Base 3000policies on the Laffer Curve Economy Cut taxes on the investor class and businesses Raise interest rates to cut inflation 1. Inflation fell 2. Huge recession begins boom 4. Rich got richer and poor got no help - by 89, top 5% saw 47% increase in income but bottom 20% saw only 3% increase Series1 5. By 89 gdp up 31% 6. Federal debt almost tripled due to huge yearly deficits million new jobs 0 year

3 Conservative Policies of Reagan - Taxes Taxes Reagan s Philosophy Policy proposals Consequences Taxes hurt the economy and need to be lowered Money belongs to the people not to the government 1. 25% tax reduction on businesses by Raise payroll taxes (SS) in Raised some taxes in 87 to address the big deficits 4. Cut taxes end of 87 and decreased tax brackets to only 4 5. Tax cuts on wealthy top marginal rate were significant 11% points from Rich got richer 2. Investments increased 3. Federal debt almost tripled due to huge yearly deficits 4. Deficits increased showing the Laffer curve was a flawed theory

4 Conservative Policies of Reagan - Regulations on Business Regulations on Business Reagan s Philosophy Policy proposals Consequences Gov t had too many regulations that hurt business Needed to lower gov t spending Unions are bad Needed to eliminate regulatory agencies like the Dept of Energy and the Nuclear Regulatory Commission Cut gov t spending by $41 billion Fired the Air Traffic Controllers and broke their union Tried to cut and weaken OSHA and NLRB rules Cut rules on many businesses and industries like the savings and loans 1. S and L scandal cost US treasury over $200 billion 2. Business activity expanded 3. Many mergers and acquisitions leading to growth in stock market values 4. Fraud and illegal trading was somewhat widespread

5 Conservative Policies of Reagan - Environment Environment Reagan s Philosophy Policy proposals Consequences Gov t had too many regulations that hurt business Environment is of secondary importance to economic growth Watt as Sec of interior -- opened lands to logging, coal offshore drilling -- cut money for endangered species protection -- cut money for EPA 1. 75% reduction in EPA pollution enforcement actions 2. Slowdown in superfund cleanup 3. Millions of acres of formerly protected lands were grazed, drilled, mined and logged 4. Economy expanded

6 Conservative Policies of Reagan Justice & Social Programs Reagan s Philosophy Policy proposals Consequences Gov t and country had become too liberal in promoting rights of identity groups Needed more law and order and morality Justice Cut funding for EEOC Supported racist policies at Bob Jones University Appointed Rhenquist as Chief, Scalia, O Connor & Kennedy to S.C. Social programs 1. Weakened protections for the accused 2. Weakened ability of those discriminated to win their cases Reagan s Philosophy Policy proposals Consequences People should be selfreliant Lazy welfare cheats game the system Welfare promotes immorality & bad families Fed should get out of education WIC cut Raised taxes to help fund SS trust fund Only increased $ for AIDS after 86 Cut $ for welfare programs, school lunches, student loans, AFDC 1. 22% of all US children in poverty 2. Gap between rich and poor got much wider 3. AIDS epidemic got worse 4. More people in poverty

7 Results of Conservative Policies of Reagan Poverty rate: increased from 11% to 15% then declined to 13% in 1989 Number in poverty: increased from 25 million people to 35 million then decreased to 32 mil in 88 then back up to 33 mil in 89 that continued to 39 mil in 93Real income increased 3% for poorest 20% of families from 81 89: up 47.7% for richest 5% Wage increases for lower 20% up 9.8% but up 20% for the upper 20% Income inequality up from Income Growth by Quintile 2 Quintile Lowest 20% 138% -15% 2nd 20% rd 20% th 20% Highest 20% 99 18

8 Results of Conservative Policies of Reagan Federal government debt from $1 trillion in 81 to $3 trillion in 93 Yearly budget deficits from 100 Billion to 250 billion by 89 22% of all children lived in poverty by 92 Percentage of people who worked full time but earned less than poverty wages increased from 12% in 79 to 18% in 92 inequality : richest 4 million households (top 5%) earned 15.6% of national income in 1981 up to 18.9% by 89 whereas the bottom 40%: 33,000,000 households earned 14.4% in 1981 down to 13.3% of national income in 89

10 income in 2005 $ Mean (average) family income in current 2005 $ Piketty and Saez (2006) 38,000 37,000 36,000 35,000 34,000 33,000 32, year average income in 2005 $

11 Bottom Quintile Mean family income -current 2005 $ US Census Bureau CPS bottom quintile mean income

12 2nd Quintile Mean family income -current 2005 $ US Census Bureau CPS nd quintile mean income

13 3rd Quintile Mean family income -current 2005 $ US Census Bureau CPS middle quintile mean income

14 4th Quintile Mean family income -current 2005 $ US Census Bureau CPS th quintile mean income

15 Top Quintile Mean family income -current 2005 $ US Census Bureau CPS top quintile mean income

16 Top 5% Mean family income -current 2005 $ US Census Bureau CPS top 5% mean income

17 current 2004 $ Comparing Quintiles Mean family income in current 2005 $ US Census - CPS lowest 20% 2nd 20% middle 20% 4th 20% top 20% top 5% year

18 US Soviet Relations US supported repressive regimes in third world who would counter Communist influence -Reagan s Administration was very afraid of an apparent build-up of Russian power -US spent huge $ on military build-up B-1 bomber, development of neutron bomb -Yearly expenditures went from $157b in 81 to $273b in 86 -Began Strategic Defense Initiative (SDI) known as Star Wars -Reagan opposed arms control agreements because he believed the US was behind the USSR in military might -Reagan called USSR the Evil Empire

19 US Soviet Relations results Large increase in US federal budget deficit because of the very large increase in US military spending Increased political power of defense industries Soviets felt angry and quite threatened Arms Control First Term Reagan negotiated the Intermediate Nuclear Forces Treaty with a very hard line, calling for USSR to remove 600 nukes and the US to remove 0 Proposed the Strategic Arms Reduction Treaty (START I) Results Soviets distrusted Reagan and were angered by him US deployed new nuclear missiles in Europe, and the USSR also

20 Defense Spending Huge increase leading to huge deficits Results Reagan supporters claim that the US outspent the USSR and thus they spent themselves out of existence. Most historian today believe that this was not the case. Missile Defense SDI was begun in 1983 and cost $17b between 83 and 89. Results US allies and the USSR were both made nervous that a working missile defense shield would undermine the stability of Mutual Assured Destruction (MAD) that was the basis of nuclear deterrence.

21 US Soviet Relations Relations warmed after Mikhail Gorbachev became leader of USSR Reagan felt comfortable to negotiate from a position of strength Meeting with Gorbachev in Reykjavic, Iceland in 1986 got the two sides talking. While no agreement was reached, the agreed to continue talking Reagan and Gorbachev met a number of other times, with each going to the other s Capital. Results Arms Control agreements were signed and overall relations warmed, leading to increased cooperation in other areas like ending Soviet domination of Eastern Europe, ending the war in Afghanistan.

22 Arms Control second term Reagan believed now that we could negotiate because we could trust USSR but we still needed to verify INF treaty signed in 1987 and ratified in June 1988 START I negotiated under Reagan START II negotiations begun under Reagan Results INF Soviet SS 20s and US Pershing II missiles were completely removed from Europe with on-site inspections START I signed in July 31, 1991, ratified 1994 reducing nuclear warheads on each side to under 6000 with under 1600 delivery vehicles. START II signed in 93 and ratified in by US in 96 and the new Russian Federation in Russia does not ratify treaty

23 The Cold War Ends 1985, Mikhail Gorbachev became the general secretary of the Communist Party in the Soviet Union Soviet economy under a great amount of stress; Reagan added pressure by increasing U.S. defense spending Gorbachev advocated a policy known as glasnost (Russian for openness ). He allowed open criticism of the Soviet government, some freedom of press Plans for perestroika a restructuring of Soviet society, some private enterprise, move to democracy better relations with the US would allow the Soviets to reduce their military spending and reform their economy Initiated a series of arms-control meetings that led to the INF Treaty (Intermediate-Range Nuclear Forces Treaty) Eliminated two classes of weapons systems in Europe and allowed each nation to make on-site inspections of the other s military installations.

Mikhail Gorbachev With his policies of glasnost and perestroika, Soviet leader Mikhail Gorbachev attempted to democratize his country's political system in

24 Mikhail Gorbachev With his policies of glasnost and perestroika, Soviet leader Mikhail Gorbachev attempted to democratize his country's political system in the 1980s. Though he was ultimately forced to resign from office, his programs led to the downfall of communism and the breakup of the Soviet Union in 1991.

25 The Cold War Ends The Soviet Union Declines (map) December 1991, 14 non-russian republics declared their independence from the Soviet Union, Gorbachev resigned as Soviet president Commonwealth of Independent States (CIS) took the place of the Soviet Union. President Bush and Russian president Boris Yeltsin issued a formal statement declaring an end to the Cold War Yeltsin and Bush signed the START II pact, designed to cut both nation s nuclear arsenals by two-thirds

The Cold War Ends The Collapse of Communist Regimes Gorbachev reduces Soviet control of Eastern Europe, urges democracy (Poland, East Germany) 1989, Berlin Wall torn down; 1990, 2

27 The Cold War Ends The Collapse of Communist Regimes Gorbachev reduces Soviet control of Eastern Europe, urges democracy (Poland, East Germany) 1989, Berlin Wall torn down; 1990, 2 Germanys reunited Czechoslovakia, Baltic states, Hungary, Bulgaria, Romania democratic Ethnic civil war breaks out in Yugoslavia between Muslims, Orthodox Serbs, and Roman Catholic Croats

28 El Salvador Reagan applies the Domino Theory to Central America and send $5bi in aid to a right-wing government in El Salvador Results Long term bloody civil war ensues and tens of thousands are killed in the fighting between leftist guerillas led by Farabundo Marti National Liberation Front and the US-backed government. The civil war spawned death squads of young men. Some escaped to the US and became the founding members of MS-13 one of the most dangerous and violent gangs in the world.

29 Nicaragua 1978 the Sandinista guerilla movement a left-wing group opposed to right-wing dictator Luis Somoza Debayle (Somoza) begins a violent revolution 1979 Somoza resigns and the Sandinistas takes over President Reagan sends arms and money to a pro-somoza right-wing group, the Contras, to overthrow the Sandinistas 1982 Civil war between the Contras and the Sandinista government continues to rage in Nicaragua leading to tens of thousands of deaths 1984 Daniel Ortega, leader of the Sandinistas, is elected President 1990 Civil War ends and Violetta Chomorro is elected President in free elections and the Sandinistas become an opposition party

30 Grenada Bernard Coard, a US-educated leftist-revolutionary takes over Grenada and institutes a left-wing regime. US invades the small island and deposes Coard and develops a democratic government there Middle East Lebanon Civil War in Lebanon between three groups: Israeli-backed Christians v. Syrian-backed Sunni Arabs and the Palestinian Liberation Organization v. Iran-backed Hizbollah Shi a Arabs US sent in 2000 Marines to Beirut to keep the peace Hizbollah blew up 241 Marines in a suicide bombing in 1983 so US withdraws its troops in US citizens stay in Lebanon to help.

31 Terrorism Terrorist Hizbollah capture Americans in Lebanon Reagan promises never to negotiate with terrorists, but behind the scenes negotiates with Iran to release the hostages (see Iran-Contra scandal below) Reagan attacked Libya who was responsible for terrorist attacks in Rome, Vienna and Berlin. Flights of F-111, F/A 18 hornets, with A-6 and A-7 support bombed sites in Libya, including killing some of Muammar Qaddafi s children.

32 $ $ Locations of CIA covert operations to overthrow unwanted leftist governments

33 Iran-Contra 1981 Reagan orders Director of CIA William Casey to begin to help to overthrow the Sandinistas by arming and training the Contra rebels based in neighboring Honduras Congress puts into effect the 1982 Boland Amendment that outlaws funding for the Contras From 1983 through 1985 Reagan ordered the NSC to find ways to go around the Boland Amendments 1985 the National Security Advisor Anthony MacFarlane, NSC staffer Col. Oliver North, DCI Casey and Reagan approved a plan to: - sell 1500 anti-tank and stinger missiles to Iran, for use against US-backed and armed Iraq in return Iran would secure the release of the Hizbollah-held hostages in Lebanon - MacFarlane and Poindexter were also tasked with raising $ from private and foreign country sources for use by the Contras - the Iranians were overcharged for the weapons and the profits were then funneled to the Contras in Nicaragua

Iran- Contra affair on Capitol Hill on July 7, 1987.

34 Oliver North Lt. Col. Oliver North testifies before the joint House-Senate panels investigating the Iran- Contra affair on Capitol Hill on July 7, North served as an aide to the National Security Council (NSC) during the Reagan administration and was the key figure in the Iran-contra scandal that erupted in 1986.

35 Iran-Contra 1986 the plan continues under new NSA John Poindexter 1986 story is uncovered in Nicaragua and Lebanon by reporters. Congress is unhappy that Reagan violated his own rules about negotiating with terrorists and for the violation of the Boland Amendment. Investigations ensue by a joint select committee of Congress and Reagan appoints the Tower Commission to investigate. Colonel North destroys documents and other evidence. The investigations show that Reagan was aware of the situation and his administration was playing fast and loose with the laws and repeatedly lied to Congress and the American people. North, Poindexter and Defense Secretary Weinberger were convicted of lying, etc

The Cold War Ends Communism Continues in China 1980 s, China loosens business restrictions, stops price controls Students demand free speech, voice in government 1989, large demonstrations in Beijing

36 The Cold War Ends Communism Continues in China 1980 s, China loosens business restrictions, stops price controls Students demand free speech, voice in government 1989, large demonstrations in Beijing s Tiananmen Square and on the streets of other cities China s premier, Li Peng, eventually ordered the military to crush the protesters China s armed forces stormed into Tiananmen Square, slaughtering unarmed students

37 Individuals religious leaders Conservative Movement Groups Jerry Falwell Moral Majority, Inc. and Liberty U Pat Robertson - Christian Coalition, Christian Broadcasting (700 Club) Jimmy Swaggart Billy Graham Jim Bakker Ideological conservatives William F Buckley - National Review William Kristol The Weekly Standard Richard Viguerie Phyllis Schlaffly opposed ERA Paul Weyrich founded Heritage Foundation Conservative Coalition New Right Evangelicals Pat Robertson s Christian Coalition founded 1988 Moral Majority, Inc. founded in 1979 by Falwell disbanded in 1989 and replaced by James Dobson s Focus on the Family Republican Party Think Tanks American Enterprise Institute, Heritage Foundation, CATO Institute Universities Bob Jones U, Liberty U, Pepperdine U, Oral Roberts U Business groups

38 Conservative Movement Issues 1. Opposed to abortion opposed to abortion, promote traditional family structures, 2. oppose gun control, 3. oppose ERA, 4. wanted to shrink or abolish entitlement programs like welfare, Social Security, Medicare and medicaid, 5. opposed integration and busing, 6. promoted prayer in school, 7. cutting taxes, 8. reducing government regulations on businesses, 9. promoting federal funding for religious schools, 10.stronger national defense, 11.opposed divorce, 12.gov t power to local and state governments.

39 Social and Cultural Conflict 1980s Issue described Conservative beliefs Liberal beliefs Family divorce rates up More un-wed parents 2/3 of women working outside home TV violence and sex Drugs poverty 1. Dad works mom should be at home with kids 2. Lessen violence and sex on TV with more rules, penalties and protest 3. gov t to promote god 4. Prayer in school 5. Creationism in school 6. Gays hurt families 1. Poor need more help 2. People need to be individually happy 3. Religion is personal, not public 4. No censorship let people make their own choices Education colleges appear too liberal Public schools are not working and US kids are falling behind the rest of the world 1. Need schools to promote proper values prayer and patriotism 2. Keep evolution, sex, drugs and bad language out of schools 3. Teach the basics of reading, writing, western civilization and math 1. Science should be taught as science, with out politico-religion 2. New studies about different cultures should be taught move away from Amero-centrism

40 Social and Cultural Conflict 1980s Issue described Conservative beliefs Liberal beliefs Poverty lots of poor people Increased levels of homelessness and under-nutrition for poor children Abortion legalized by Roe v Wade increased numbers of abortions some people used it as birth control 1. Poverty is the fault of the poor 2. Gov t Great Society created a culture of poor- disincentive to work and have normal married families 3. Poor cheat the welfare system 4. People need to be self-reliant 5. Private charities can help 1. Abortion is evil, immoral murder 2. Roe should be overturned 3. Pro-choice is really culture of death 4. Boycott clinics, use violence, 5. End public financing of abortions and birth control for poor 1. Poor need more help 2. Gov t programs need to be tailored to work for the neediest americans 3. States and cities need the help of the federal gov t 4. Wealthy can pay more taxes 1. Feminists see abortion as a woman s right and related to equality 2. Individual liberty leads to choice 3. Pro-family work policies like flex-time and parental leave would lessen # of abortions 4. More family planning

41 Social and Cultural Conflict 1980s Issue described Conservative beliefs Liberal beliefs AIDS 1981 AIDS first identified Rock Hudson, friend of Reagan dies of AIDS 1986 presidential commission to investigate and a small amount of fed $ spent on research AIDS deaths reach 46,000 by Gay s fault 2. No need to research because it only affects gays and druggies 3. Contraception is immoral 4. Federal funding is very low until 1986, and Reagan does not publicly say AIDS till Need much more money for research 2. Need public campaign for education for prevention 3. Public availability for contraception including in schools Immigration lots of new immigrants from many new places 1 million/yr Language, music changed Conflict b/t old and new immigrants intermarriage 1. Immigration Reform and Control Act some amnesty for older immigrants and workers, fines for employers CA initiative to require English 1. Multi-culturalism in schools 2. New other studies programs 3. Bilingual education and ESL 4. More leniency for illegal immigrant families

The Conservative Tide

The Conservative Tide President Ronald Reagan s election marks a rightward shift in domestic and foreign policy. With the collapse of the Soviet Union, the Cold War ends and the U.S. confronts a host of