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CONSERVATIVE POLICY:THE REAGAN & BUSH ADMINISTRATIONS
CHAPTER 33, SECTION 2
President Ronald Reagan
& Vice-President
George H.W. Bush
Ronald Reagan
Ronald Regan, Actor
Ronald Reagan in
California
REAGANOMICS WHAT WAS REAGANOMICS?
PRES. REAGAN’S PLAN / POLICY TO IMPROVE THE U.S. ECONOMY
EXPLAIN: REAGANOMICS WAS BASED ON 3 BASIC PRINCIPLES:
LARGE TAX CUTS… WOULD INCREASE PRIVATE INVESTMENTS… WOULD INCREASE U.S. SUPPLY OF GOODS & SERVICES
OTHER PRINCIPLES OF REAGANOMICS: SUPPLY-SIDE ECONOMICS: DEFINE: CUTTING TAX RATES… GAVE PEOPLE MORE INCENTIVE TO WORK, SAVE & INVEST
HOW DID IT WORK (IN THEORY)? MORE BUSINESS INVESTMENT = MORE JOBS WHY? ENTREPRENEURS & OTHER SUPPLIERS
DEVELOPED NEW PRODUCTS & SERVICES MORE WORKERS = MORE TAXPAYERS MORE TAXPAYERS = WEALTHIER U.S. GOV’T.
REAGANOMICS (CONT’D.) SUPPLY-SIDE ECONOMICS WAS ALSO CALLED…
TRICKEL-DOWN ECONOMICS WHY? BECAUSE THE PROSPERITY ENJOYED BY THE
BUSINESS OWNERS WAS SUPPOSED TO “TRICKLE-DOWN” TO THE WORKING CLASSES
SUPPLY-SIDE ECONOMICS: PROS?
INFLATION DECREASED STOCK MARKET IMPROVES UNEMPLOYMENT DECLINED GROSS NATIONAL PRODUCT (GNP): UP 10%
CONS? NATIONAL DEBT INCREASED EX.: 1980-92: $900 BIL. TO $4 TRILLION TRADE IMBALANCE (DEFINE)
OTHER DEVELOPMENTS SUPREME COURT MOVES “TO THE RIGHT”:
EXAMPLES? SANDRA DAY O’CONNOR: 1st WOMAN APPOINTED
TO THE SUPREME COURT WILLIAM RHENQUIST: VERY CONSERVATIVE
JUSTICE BECOMES CHIEF JUSTICE SO WHAT? REAGAN (AND LATER BUSH, Sr.) MAKE
SUPREME CT. MORE CONSERVATIVE INCREASED MILITARY SPENDING:
WHY? TO STIMULATE THE ECONOMY CONCERN OVER SOVIET THREAT
EXAMPLE? STRATEGIC DEFENSE INITIATIVE (S.D.I.):
NICKNAMED “STAR WARS” GOAL: TO ELIMINATE SOVIET ICBM THREAT
Reagan at the
Berlin Wall:
“Mr. Gorbachev,
tear down this
wall!”
S.D.I. / “STAR WARS”
DE-REGULATION
REAGAN DEREGULATES THE ECONOMY WHY? TO STIMULATE MORE BUSINESS &
BUSINESS PROFITS EXAMPLES?
SAVINGS & LOAN INDUSTRY: S & L’s ALLOWED TO INVEST IN COMMERCIAL REAL ESTATE
PROBLEM? RISKY INVESTEMENTS LED TO S & L FAILURES
EFFECT? INVESTOR SAVINGS WIPED OUT OTHER EXAMPLES?
E.P.A. BUDGET CUT
THE 1984 & 1988 ELECTIONS
CONSERVATIVES WIN BOTH ELECTIONS: SO WHAT? REPUBLICAN PARTY IN WHITE
HOUSE FOR 3 TERMS (12 YEARS) WHY?
CONSERVATIVE COALITION HAD MANY GROUPS / SUPPORTERS
COALITION HAD WIDE GEOGRAPHIC SUPPORT IN U.S.
SEE P. 986, TOP
CHAPTER 33, SECTION 3
IMPORTANT TERMS: A.I.D.S.
ACQUIRED IMMUNE DEFICIENCY SYNDROME
PAY EQUITY L. DOUGLAS WILDER JESSE JACKSON AFFIRMATIVE ACTION
CHAPTER 33, SECTION 3
IMPORTANT DATES: 1983: A NATION AT RISK REPORT
PUBLISHED 1984: REV. JESSE JACKSON RUNS FOR
DEMOCRATIC PARTY PRESIDENTIAL NOMINATION
1988: JACKSON RUNS AGAIN 1990: L. DOUGLAS WILDER ELECTED
GOV. OF VIRGINIA 1992: THE RODNEY KING RIOTS
NEW PROBLEMS New Problems: Health Issues Examples:
A.I.D.S. Origin: Most likely Central / East Africa How? Animal – Human, then Human – Human Primarily Blood-borne / Bodily fluids H.I.V. virus is source N.America: 1st becomes noticed in Gay / Bisexual
and I.V. Drug user groups Reaction?
Bad; Gov’t. is not sympathetic to victims Gov’t funds for research are slow to develop
Result? Disease jumps into Heterosexual community Is still an ongoing health concern
A.I.D.S in
Europe
NEW PROBLEMS (Cont’d.) DRUG USE & EPIDEMICS:
PROBLEM: Drug use among citizens continued to increase in 1980’S
WHAT GROUPS? Primarily young Americans “NEW” DRUGS ADD TO TROUBLE:
Examples: Cocaine “Crack” PCP Methamphetamines / Synthetic Drugs (“Ecstasy”, “Crank”, etc.)
WHY IS PROBLEM GETTING WORSE? Answer: Expansion of drug use coincides w/ more
gang-related violence Examples:
1980: 10 U.S. cities reported major gang-related violence 1990: 125 U.S. cities report major gang-related violence
NEW PROBLEMS (Cont’d.)
Gov’t Response to Drug problem: Nancy Reagan: Just Say No! Campaign Gov’t. begins random drug testing Congress cuts off college loans & public housing
for marijuana users U.S. Military becomes more heavily involved in
drug enforcement (Coast Guard, Navy, Army) Penalties increased for drug users / dealers
Result? “The War on Drugs” begins Problem: Drug dealers / suppliers constantly
change methods of distribution / production
2007 Major Drug Problems by Region Green: Marijuana Blue: Cocaine Red: Methamphetamines
Major International Drug Traders
Pablo Escobar Rayful Edmond, III
Body of Pablo Escobar after shootout, 1993
NEW PROBLEMS (Cont’d.) 1983: Presidential Commission Report Subject: U.S. education Title: A Nation at Risk Result?
Reports serious problems w/ U.S. education Examples?
Scores on standardized tests among students had declined since 1957
Most 17-yr. olds couldn’t read a paragraph in English
23 mil. Americans couldn’t follow instruction manuals or complete job application form
Most 17-yr. olds couldn’t find U.S. on a world map Response: Many suggestions, few effective
OTHER DEVELOPMENTS New Leadership in Minority Communities:
Democratic Party: Jesse Jackson Runs for Dem. Presidential nomination, 1984,’88
Republican Party: L. Douglas Wilder Elected Governor of Virginia 1st African-American state gov. in U.S. history
Urban leadership: Rev. Al Sharpton, D-NY Becomes major leader of NYC Af.-Am. Community Elected to Congress (House of Reps.)
The Reverend
Jesse Jackson
GUESS WHO (Again)?
L. Douglas Wilder,
Governor of Virginia
THE RODNEY KING RIOTS WHEN? 1991 WHERE? Los Angeles WHY? Acquittal of 4 LAPD officers charged w/
videotaped beating of motorist Rodney King RESULT? Widespread violence / looting in Central
L.A.
Rodney King Video, 1991