The 1980s

The 1980s
The Reagan Revolution

The Election of 1980: Carter v. Reagan
Jimmy Carter
Ronald Reagan
Inflation
Oil Shock- High oil prices
In a recession
Unemployment up to 8%
Soviet Invasion of Afghanistan
Iranian Hostage Crisis
Offered hope for the economy
Offered a build-up of American forces to stop Soviet Union
“Are you better off now then you were four years ago?”

State of the Economy in 1981
Interest rates were 20%
Value of dollar was 36 cents
Reagan blamed it on the government
Excessive taxes
High government spending

Supply Side Economics
Lower corporate income taxes
Would mean a greater profit
Would invest more
Effects of lower corporate taxes
Costs go down for the business
Can invest in new technology
Make items more productively
Can hire more people

Decrease in government spending
Did not touch popular programs
Social Security
Medicare
Cut 41 Billion dollars in spending
Food stamps
Reduced public service jobs
Reduced student loans
Reduced support for city mass transit (public buses)

Private Sector is rejuvenated
Policy of Deregulation is to rely on marketplace to direct nation’s economy
Upset Environmentalists
Opened land to coal and timber production
Halted growth of American parkland
Billion acres opened for off shore drilling
Rid the automobile industry of many regulations
Negotiated with Japan to lower exports and save Detroit

PATCO: Air Traffic Controllers
Strike in the summer of 1981
Reagan states “protective services are the government’s reason for being “
Reagan took action
Fired striking workers
Decertified the Union
Trained thousands of new air traffic controllers at a cost of $1.3 billion

Mixed reviews on Civil Rights
Strong rhetoric against Roe v. Wade decision that legalized abortion
Did appoint first woman to Supreme Court with Sandra Day O’Connor
72 nominees to federal courts
12 were women
3 were Black
Openly opposed school busing mandated by Swann v. Charlotte Mecklenburg
Openly against affirmative action

Reagan and Foreign Policy
First day in office, hostages from Iran were set fee
Doubled defense spending
Expansion of navy
B-1 bombers
MX nuclear missiles
Hard line on “Evil Empire”
Placed 572 Pershing II missiles in western Europe pointing to Moscow and other large cities
Complained only had 10 minutes of reaction time

Star Wars
(SDI) the Strategic Defense Initiative
Anti Missile system
Used lasers and particle beams to destroy incoming missiles in outer space
Critics believed it would cause the Soviet Union to build quicker and more efficient missiles
Each side had a build up of 50,000 missiles

South American Leadership: Who do we support?
Reagan perceived that the Soviet Union was supporting communism in South America
Conditions in South America
Extremes of wealth
Small landowning elite
Masses of poverty stricken
U.S. wished to support a modern middle class regime that did not exist
Ended up backing right wing dictators rather than support land reform and redistribution of wealth

The U.S. and Nicaragua
Sandinistas were successful in the overthrow of the Somoza government
Sandinistas were left winged
Carter extended aid
Reagan reversed policy
Accused Sandinistas of driving out moderates, and turning toward Cuba and Soviet Union
Reagan asked Congress to oust Sandinistas
Congress said no
Reagan opted for covert action

The United States backs the Contras
Contras were rebels of the Sandinistas
They were exiles in Honduras and Costa Rica
Began supplying weapons to Contras
Actions of the Contras
Attempted to disrupt the Nicaraguan economy
Raiding villages
Blowing up oil tanks
Blowing up mining harbors
Congress passed the Boland Amendment
U.S. could not spend money in Central America

Trouble in the Middle East
Israel honored Camp David Accords
Withdrew from Sinai Peninsula
Reagan wanted a homeland for the Palestinian Arabs on the West Bank, Israel did not comply
PLO (Palestine Liberation Force) continued to make attempts to raid Israel from Lebanon
June 1882, Israel invades Lebanon to destroy the PLO
U.S. did not stop invasion, but did not send troops

Middle Eastern Trouble Spots

U.S. Marines deployed to Lebanon
Sent as a peace keeping mission
A multinational force is deployed to restore order
Muslims perceived the Marines were aiding the Christian government of Lebanon, instead of being peace-keepers
Congress wanted Marines pulled out
Reagan said NO, the Marines were there to protect Lebanon from Syria (backed by Soviets)

U.S. Marines in Lebanon
Terrorists drive a truck loaded with bombs into barracks
239 Marines die
President pulls out
Last marine leaves Beirut in February 1984
Leaves President humiliated

1984 Election
Ronald Reagan
Walter Mondale
Voters give Reagan credit for:
Curbing inflation
Reviving economy
Challenging communism
Geraldine Ferraro of New York was first female on the national ticket

Iran Arms Deal
Trade weapons for hostages
6 American hostages were being held in Lebanon by group of terrorists loyal to Ayatollah Khomeini
National Security Advisor Robert McFarlane proposed trading anti-tank missiles in return for the hostages release
Iran complied because of war with Iraq

Iran-Contra Affair
Oliver North was the LT Colonel assigned to the National Security Council
New Security Advisor Casey decides to send TOW anti-tank missiles and HAWK anti-aircraft missiles to Iran
Searching for a way to help Contras after the Boland Amendment
North solicited donations from right-wing Americans
Used profits from sale of weapons to Iran to fund Contras

War on Drugs
Nancy Regan’s “Just say No” campaign
I learned it by watching You

Reagan and Gorbachev
Mikhail Gorbachev was a young, dynamic leader
Wanted to improve relations with U.S.
Gorbachev wanted changes at home
Perestroika- reconstruct economy
Glasnost- political openness
Agreed to the Intermediate Nuclear Forces Treaty
Removed all intermediate range missiles from Europe
Soviets withdrew from Afghanistan

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The 1980s

by Kelly Milkowich

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