The 1980s saw major changes under President Ronald Reagan's presidency. Reagan implemented supply-side economics through tax cuts and reduced government spending. This led to economic recovery and lower inflation rates. However, Reagan also greatly increased defense spending and pursued an aggressive foreign policy against the Soviet Union, including the Strategic Defense Initiative. Reagan backed anti-communist groups in Central America, leading to controversy over Iran-Contra. He had mixed success in the Middle East and suffered humiliation after the 1983 Beirut barracks bombing. Reagan was re-elected in a landslide in 1984 but faced scandal over the Iran-Contra affair. However, he developed a strong relationship with the reformist Soviet leader Mikhail Gorbachev,

1. The 1980s The Reagan Revolution

2. 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?”

3. 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

4. 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

5. 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)

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. Middle Eastern Trouble Spots

16. 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)

17. 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

18. 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

19. 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

20. 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

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

22. 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