THE REPUBLICAN THE REPUBLICAN RESURGENCE, 1980-1992RESURGENCE, 1980-1992

Chapter 32Chapter 32

The Reagan VictoryThe Reagan Victory Carter’s negativesCarter’s negatives

– Iranian hostage crisisIranian hostage crisis– economic illseconomic ills

Reagan’s positives win the electionReagan’s positives win the election– warm telegenic personalitywarm telegenic personality– optimistic messageoptimistic message– draws Jewish, working class votedraws Jewish, working class vote

Republicans win majority in the SenateRepublicans win majority in the Senate Roosevelt coalition continues to splinterRoosevelt coalition continues to splinter Republican party picks up piecesRepublican party picks up pieces

Cutting Spending and TaxesCutting Spending and Taxes

Reagan’s premise: cut spending to Reagan’s premise: cut spending to encourage private investmentencourage private investment

Reagan cuts over three yearsReagan cuts over three years– federal spending by more than $40 billionfederal spending by more than $40 billion– social services included in cuts social services included in cuts – taxes cut by 25% taxes cut by 25%

Limiting the Role of GovernmentLimiting the Role of Government

Environmental regulations relaxedEnvironmental regulations relaxed Attempted cuts in Social SecurityAttempted cuts in Social Security Neglect of interest-group opponentsNeglect of interest-group opponents

– labor hurt in air traffic control firingslabor hurt in air traffic control firings– lack of support for civil rights legislationlack of support for civil rights legislation– women ignored in judicial appointmentswomen ignored in judicial appointments

ReaganomicsReaganomics

Reagan’s reductions in spending and taxes Reagan’s reductions in spending and taxes prompt conflicting expectationsprompt conflicting expectations

Supply-side economists expect economic Supply-side economists expect economic growthgrowth

Reagan’s critics expect massive deficits, Reagan’s critics expect massive deficits, economic stagnation economic stagnation

Recession and RecoveryRecession and Recovery

1981-1982--unemployment hits 10%1981-1982--unemployment hits 10% 1983--economic recovery1983--economic recovery

– rise in consumer spending rise in consumer spending – prices remain levelprices remain level– worldwide decline in energy pricesworldwide decline in energy prices

The Growing DeficitThe Growing Deficit

1983--federal budget deficit $200 billion1983--federal budget deficit $200 billion– massive deficit spending massive deficit spending – massive inflows of foreign investmentmassive inflows of foreign investment

Spending caps on defense, servicesSpending caps on defense, services 1985--U.S. becomes a debtor nation 1985--U.S. becomes a debtor nation

U.S. Budget Deficits, 1980-1997U.S. Budget Deficits, 1980-1997

Effects of ReaganomicsEffects of Reaganomics Gains of Reaganomics Gains of Reaganomics

– inflation reduced to 4%inflation reduced to 4%– employment grows after 1982employment grows after 1982– growth in service sector jobsgrowth in service sector jobs– Huge boom market of Wall StreetHuge boom market of Wall Street– Creates the greatest peacetime expansion of the Creates the greatest peacetime expansion of the

American economy since the post WWII boomAmerican economy since the post WWII boom– Charitable donations sky-rocketCharitable donations sky-rocket

Losses of ReaganomicsLosses of Reaganomics– high-paying manufacturing jobs declinehigh-paying manufacturing jobs decline– housing projects go unfundedhousing projects go unfunded– Increase in people below poverty lineIncrease in people below poverty line

Reagan AffirmedReagan Affirmed

Perception of Perception of improving improving economyeconomy

1984 election1984 election– Reagan trounces Reagan trounces

Walter MondaleWalter Mondale– Republicans, Republicans,

however, lose however, lose seats in Congressseats in Congress

Reagan and the WorldReagan and the World

Reagan determined to restore America's Reagan determined to restore America's international positioninternational position

Steep increase in military spendingSteep increase in military spending Aggressive foreign policyAggressive foreign policy

Challenging the "Evil Empire"Challenging the "Evil Empire"

Reagan: Soviet Union the "focus of evil in Reagan: Soviet Union the "focus of evil in the modern world" the modern world"

Unfavorable deals on arms reductionsUnfavorable deals on arms reductions U.S. response to Russian refusalU.S. response to Russian refusal

– deployment of cruise missiles in Europedeployment of cruise missiles in Europe– development of anti-missile systemdevelopment of anti-missile system

Russians build up nuclear arsenalRussians build up nuclear arsenal

Turmoil in the Middle EastTurmoil in the Middle East

1982--Israeli invasion of Lebanon1982--Israeli invasion of Lebanon International responseInternational response

– U.S., France send troops to maintain order U.S., France send troops to maintain order – PLO evacuates BeirutPLO evacuates Beirut

1984--200 U.S. Marines killed in terrorist 1984--200 U.S. Marines killed in terrorist bombingbombing

U.S. evacuation of LebanonU.S. evacuation of Lebanon

Trouble Spots in the Middle Trouble Spots in the Middle EastEast

Confrontation in Central AmericaConfrontation in Central America

Intervention against Latin American leftist Intervention against Latin American leftist insurgentsinsurgents

Covert subversion of Sandinistas Covert subversion of Sandinistas October, 1983--invasion of GrenadaOctober, 1983--invasion of Grenada

Trouble Spots in Central America Trouble Spots in Central America and the Caribbeanand the Caribbean

Trading Arms for HostagesTrading Arms for Hostages

Advanced weapons sold to Iran for influence Advanced weapons sold to Iran for influence in freeing American hostagesin freeing American hostages

November, 1986--Iran-Contra scandalNovember, 1986--Iran-Contra scandal– profit from Iran arms sales to Contrasprofit from Iran arms sales to Contras– funding violates Congressional prohibitionfunding violates Congressional prohibition– Reagan escapes impeachmentReagan escapes impeachment

Reagan the PeacemakerReagan the Peacemaker

1985--Mikhail Gorbachev assumes power in 1985--Mikhail Gorbachev assumes power in Russia Russia

1985-88--Reagan-Gorbachev summits1985-88--Reagan-Gorbachev summits– 1987--destroy intermediate range missiles1987--destroy intermediate range missiles– 1988--Afghanistan evacuated1988--Afghanistan evacuated

Foreign policy triumphs restore Reagan’s Foreign policy triumphs restore Reagan’s popularitypopularity

Social DilemmasSocial Dilemmas

AIDS epidemic AIDS epidemic Drug abuseDrug abuse

The AIDS EpidemicThe AIDS Epidemic

1981--AIDS first detected 1981--AIDS first detected – apparent confinement to homosexual men apparent confinement to homosexual men

results in early public inaction results in early public inaction – spread to drug users, recipients of blood spread to drug users, recipients of blood

transfusions prompts panictransfusions prompts panic

Reagan Administration’s responseReagan Administration’s response– fund researchfund research– little funding for education, preventionlittle funding for education, prevention– 1987--appointment of AIDS commissioner1987--appointment of AIDS commissioner

The AIDS Epidemic (2)The AIDS Epidemic (2)

1996--500,000 infected1996--500,000 infected– majority homosexuals, drug usersmajority homosexuals, drug users– 15% heterosexual, non-drug abusers15% heterosexual, non-drug abusers

1996--AIDS death rate begins dropping 1996--AIDS death rate begins dropping – new drugsnew drugs– safer sexual practicessafer sexual practices

The War on DrugsThe War on Drugs

Mid-1980's--crack cocaine introducedMid-1980's--crack cocaine introduced– addiction spread through all classesaddiction spread through all classes– exploding crime rateexploding crime rate

Reagan attempts interdiction of supplyReagan attempts interdiction of supply Bush, Clinton continue Reagan policyBush, Clinton continue Reagan policy At the end of the century there seemed to At the end of the century there seemed to

be no end to the war on drugsbe no end to the war on drugs

Passing the Torch to BushPassing the Torch to Bush

Republicans hope for major political Republicans hope for major political realignmentrealignment

Factors reinforcing trendFactors reinforcing trend– 1980s economic boom1980s economic boom– promise of the end of the Cold Warpromise of the end of the Cold War

The Changing Palace GuardThe Changing Palace Guard

1985--Donald Regan chief of staff1985--Donald Regan chief of staff Second-term victoriesSecond-term victories

– tax reform packagetax reform package– appointment of conservativesappointment of conservatives

Changes in the Supreme CourtChanges in the Supreme Court– Senate blocks Bork appointment to CourtSenate blocks Bork appointment to Court– Bush appointments help turn the Court more to Bush appointments help turn the Court more to

the rightthe right

The Election of 1988The Election of 1988

Republican George BushRepublican George Bush Democrat Michael DukakisDemocrat Michael Dukakis Bush television ads attack Dukakis as soft Bush television ads attack Dukakis as soft

on crime, unpatrioticon crime, unpatriotic Bush wins White HouseBush wins White House Republicans lose seats in CongressRepublicans lose seats in Congress

Bush’s Domestic AgendaBush’s Domestic Agenda

Problems of 1989Problems of 1989– savings and loan industry facing collapsesavings and loan industry facing collapse– ballooning federal deficitballooning federal deficit

Bush’s deficit reductionBush’s deficit reduction– raise taxesraise taxes– cut military expenditures cut military expenditures

Economic recession increases deficitEconomic recession increases deficit

The End of the Cold WarThe End of the Cold War

June, 1989--Tiananmen SquareJune, 1989--Tiananmen Square November, 1989--Berlin Wall torn downNovember, 1989--Berlin Wall torn down 1991-1992--U.S.S.R. dissolved, Communist 1991-1992--U.S.S.R. dissolved, Communist

Party outlawed in Russian RepublicParty outlawed in Russian Republic Cautious response by BushCautious response by Bush

The End of the Cold WarThe End of the Cold War

Waging PeaceWaging Peace

1989--U.S. invasion of Panama 1989--U.S. invasion of Panama August, 1990--Iraq occupies Kuwait August, 1990--Iraq occupies Kuwait January, 1991--Operation Desert StormJanuary, 1991--Operation Desert Storm Outcome of Desert Storm Outcome of Desert Storm

– February 24--Iraqi force collapsesFebruary 24--Iraqi force collapses– Bush’s approval hits 90%Bush’s approval hits 90%

Republican Economic WoesRepublican Economic Woes

1990 budget deal violated Bush’s “no new 1990 budget deal violated Bush’s “no new taxes” pledgetaxes” pledge

Also failed to reduce budget deficitsAlso failed to reduce budget deficits Economic recession prolonged Economic recession prolonged Recession ends by mid 1992 but it is too Recession ends by mid 1992 but it is too

late for Bush to take credit and peoples late for Bush to take credit and peoples minds were already made upminds were already made up