Conservative Insurgency – Reagan Years
Economy sluggish, high inflation and failure to free American hostages in Iran made
Carter seem indecisive. Republicans meanwhile assaulted the “New Deal Welfare
system” mentality in Washington. The center of Republicans was Ronald Reagan, who
was not a deep thinker but an unabashed patriot who was cheerful and charming. Reagan
promoted restoration of American pride and prosperity. Reagan wanted to increase
military spending and cut the federal bureaucracy, reduce taxes and regulations wanted to
bring back old morality by ending abortion and reinstituting school prayer. Reagan was
an excellent communicator and public speaker
I. The Reagan Revolution
A. Making of a President
1. from a small town in Illinois – graduated from Eureka College in 1932
2. Became an actor in Hollywood
3. at first a New Dealer and liberal went right in the 1950’s because of
Communist infiltrators into liberal groups
4. Became Governor of California in 1966
5. Appealed to middle class and lower class who were resentful of high
taxes
6. election to Presidency was helped by the fact that many people were
moving to Sunbelt where there was hostility to big gov’t
B. Moral Majority
1. revival of evangelical religion
2. 1977, survey found 70 million Americans described themselves as
born-again
3. Moral Majority was against Supreme Court decisions for abortion
against prayer in public school, for the right to teach Darwinism and
pornography
4. Jerry Falwell leader said the economy should operate without
interference by the gov’t and should be reduced in size
5. religious right opposed Carter, a born-again, and supported Reagan
who was neither pious nor ever attended church often, and a divorce
and remarried but that got little attention – he also signed one of the
most permissive abortion laws in country as Governor of CA.
C. 1980 Election
1. Carter vs. Reagan
2. Reagan pledged to restore prosperity and public confidence
3. He said “A recession is when your neighbor loses his job. A
depression is when you lose yours. And recovery is when Jimmy
Carter loses his”
4. Reagan vote total represented only 28% of potential voters
5. Many in Democratic coalition didn’t vote
II. Reagan’s 1st term
A. Reaganomics
1. Reagan said “government is not the solution to our problem,
government is the problem.”
2. Credited Calvin Coolidge and treasury Secretary of Coolidge in 20’s
Andrew Mellon with idea of reducing taxes and easing gov’t
regulations to revive economy
3. Cut taxes and domestic spending, he said would help economy and
produce more government revenues. Called supply side economics
4. August 4, 1981 Reagan signed a personal income tax cut
5. But caused big deficits – cut taxes while increasing spending on
military but cut spending on education, health, housing, food stamps,
school needs, kept safety net of New Deal approach was to give aid to
those who could not work because of disability etc.
6. Then increased taxes because of deficits in 1982
B. Defense Build-up
1. said over learned lesson of Vietnam and forgot lesson of Munich in
1938
2. Developed SDI – Strategic Defense Initiative – Anti missile defense
system dubbed Star Wars
3. forced Russians to launch expensive research and development to keep
up with US and some said this led to the overthrowing of communism.
US outspent USSR into bankruptcy
C. Nicaragua
1. Somoza was the corrupt dictator of Nicaragua
2. Sandinistas who were sponsored by Cuba opposed Somoza.
Sandinistas won and Reagan supported “Contras” who were against
Sandinistas
D. Grenada
1. smallest independent country in Western Hemisphere
2. Leftist government had let Cuban worker build an airfield and signed a
military agreements with communist countries
3. Reagan ordered 1900 Marines to invade and rescue some medical
students on island
4. UN condemned action as well as Latin America but it was popular with
people of Grenada and US made Reagan look decisive
III. Reagan 2nd Term
A. Iran-Contra Affair
1. US selling arms to Iran in hopes of getting the release of American
hostages held in Lebanon. Contradicted Reagan’s public insistence that
his administration would not negotiate with terrorists
2. Sold arms and the money went to the Contras in Nicaragua which
Congress said the US should not send money
3. Center was Oliver North and National Security Advisor Admiral John
Poindexter
4. Not sure what Reagan knew
B. Reagan Legacy
1. New Deal in tact when Reagan left office
a. Social Security and Medicare nor other major welfare programs
were dismantled
2. Federal budget was a percentage of GDP actually higher when Reagan
left office
3. Did not push Congress on school prayer and a ban on abortions
4. Did rebuild confidence in America and brought inflation under control
5. Negotiated disarmament treaty with USSR
6. Put Democratic Party on defensive
7. Increased gap between Rich and Poor