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Reaganomics
Once elected president in 1980, long-time conservative Ronald Reagan planned to reduce
taxes and cut government spending in an effort to stimulate the economy and put
Americans back to work. While Reagan’s policies will ultimately cut the marginal tax rate
by 30% and lower the unemployment rate, he failed to move Congress to cut government
spending, which coupled with increases in defense spending, created expanding budget
deficits and historic increases in the national debt. While these economic policies might be
costly for Americans in the long term; after 1983, the nation experienced economic growth
spurred on by lower taxes, defense spending, and deregulation. Opponents of
Reaganomics have often referred to it as “Trickle-Down Economics” due to their opinion
that it unfairly helped the wealthiest Americans.
Peace Through Strength
While Reagan sharply increased spending on defense as a means of stimulating the
economy, this military buildup also became an important part of Reagan’s foreign policy.
This policy, known as “Peace through Strength”, was based on the philosophy that the best
way to prevent war was to make potential enemies think that the US had both the means
and the will to stop aggression. From this policy came two notable examples: the
Strategic Defense Initiative or “Star Wars” program to deploy a space-based anti-ballistic
missile weapon system in orbit; and the Reagan Doctrine (1985), which added an
aggressive corollary to the US policy of containing the spread of communism by calling for
the US to “roll back” communism by aiding those who were resisting communism around
the world. Countries where such “freedom fighters” were active were Afghanistan, Angola,
Nicaragua, and Cambodia.
Iran-Contra Affair
As part of the Reagan’s effort to “roll-back” communism, the Reagan Doctrine (using the
CIA to train/equip forces fighting communism) was used to support the Contras Rebels in
Nicaragua. Reagan was especially sympathetic to the Contras calling them “the moral
equivalent to the Founding Fathers.” To insure Congressional oversight in the
administration of the Reagan Doctrine, the Democratically controlled Congress passed the
Boland Amendment, which restricted the aid the CIA and Dept of Defense could give the
Contras. Reagan ordered his National Security Advisor to secretly continue aid to the
Contras. To fund this aid, a secret arms deal with Iran (at war with Iraq and listed as a
state sponsor of international terrorism) was negotiated. In addition to the monies
generated by the arms sales, Reagan hoped to improve US relations with Iran and secure
the release of American hostages in Lebanon. In the end: the weapons went to Iran, some
of the hostages were released, and $18 million dollars were directed to the Contras. Once
public, an 8-year investigation of the so-called “Arms-for-Hostages” deal ensued in which
some officials resigned, few were convicted, and a handful of high-profile Reagan officials
were ultimately pardoned. While Reagan’s image was briefly tarnished, most historians
agree that no major damage was done to his legacy.
Marines in Lebanon
Reagan deployed 800 US Marines to Lebanon as part of a multinational force (along with
Syria and Israel) attempting to resolve a long, bloody civil war that threatened to destabilize
the region. On April 18, 1983, a car bomb detonated outside the US Embassy killing 17
Americans. Six months later, on October 23, 1983, a suicide bomber drove a truck full of
explosives into the Marine Barracks killing 241 servicemen. Reagan soon announced a
withdraw of US forces from Lebanon.
Iran Hostage Crisis
In the years after WWII, the US began to replace Britain as the dominant international force
in the free-world. Until 1953, the British had largely controlled Iran. However, in reaction
to the 1953 election of Mohammed Mossadegh, a Socialist-minded Nationalist, the
Eisenhower Administration authorized the CIA to organize a coup d’état that would bring
the young Persian king, Reza Shah Pahlavi to power. With US military support, the Shah
will make Iran an invaluable source of oil and ally against communism during the Cold War.
From 1953 until 1979, the Shah will rule Iran as an authoritarian ruler who routinely used
his secret police to squash dissent. US support of the Shah was intensely resented by
average Iranians. In 1979, a popular uprising forced the Shah to flee the country, which
brought opposition leader, Shiite cleric Ruhollah Khomeini, to power. When the Carter
allowed the cancer stricken Shah to come to the US for treatment on humanitarian
grounds, a mob of Iranian students overran the US embassy in Tehran taking 60+
Americans hostage. Khomeini demanded the return of the Shah for trial along with the
billions of dollars in oil revenues that had been stolen from the people of Iran. In
retaliation, Carter announced an oil embargo against Iran and ordered that all Iranian
assets in the US be seized. As the hostage crisis dragged on for months, the American
people began to demand stronger action. In April of 1980, Carter authorized the elite Delta
Force to conduct a high-risk operation to rescue the hostages. Due to equipment failure
and an aircraft collision in the Iranian desert, the mission was aborted. This failure
appeared to highlight Carter’s impotence in dealing with the situation. By the 1980
presidential election, Khomeini realized that little was left to be gained by keeping the
Americans hostage – especially given that economic sanctions were taking their toll on the
Iranian economy. While Carter worked hard to ensure that the hostages were released on
his watch, they were not released until minutes after the inauguration of Ronald Reagan.
What were the causes and key organizations and individuals of the
conservative resurgence of the 1980s and 1990s?
The liberal New Deal coalition created by FDR dominated domestic politics
from 1933 until the early 1970s with a commitment to economic assistance
for white, middle-class families. This assistance will take many forms:
creation of a social safety net, support for labor unions, subsidized
suburban growth, and government programs to fight poverty. When this
Liberal coalition began to politicize the social movements of the 1960s –
Civil Rights, integration/bussing, gender rights, and sexual rights – a
growing number of white Americans began to abandon the Democratic
Party. Conservatives positioned themselves to defend the traditional
nuclear family from what they believed to be moral threats. Politically,
Conservatives sought to constrain government interference in the family
(social policy) and limit government interference in private enterprise
(economic policy).
Phyllis Schlafly
In response to the feminist movement and the constitutional process to pass the Equal
Rights Amendment (ERA), Phyllis Schlafly organized a grassroots counter-movement
called StopERA. Schlafly contended that the family is the basis of the Judeo-Christian
society and that women played the all important role of raising/nurturing children.
According to Schlafly, women had been liberated by labor saving devices invented by free
market capitalism. Schlafly argued that the ERA would deny women special labor
protections, expose women to the draft, and increase the federal government’s intrusion
into their lives/families/homes. The StopERA movement was ultimately successful
because the ERA was not ratified within the constitutional time limit of 7 years. The
StopERA grass-roots movement would be a model for future conservative campaigns
against social political reform. Schlafly is widely considered to be one of the most
influential women during this time period.
Heritage Foundation
Founded in 1973 by leading conservatives that were frustrated with Nixon’s “liberal
consensus”, the Heritage Foundation was a think-tank created to be more openly political
and daring in its advance of individual liberty, free enterprise, limited government, a strong
national defense, and traditional American values. The foundation took a leading role in
the conservative movement during the presidency of Ronald Reagan. Heritage has since
continued to have a significant influence in US public policy and is widely considered to be
one of the most influential conservative research organizations in the US
Moral Majority
While the perceived moral breakdown of US society troubled many American evangelical
Christians, the issue that galvanized them as a political movement was the 1973 Supreme
Court decision Roe v. Wade, which legalized abortion.
The Moral Majority, led by the Reverend Jerry Falwell, was created in 1979, declaring that
American Christians had a duty – a moral obligation – to get involved in politics. Seeing
themselves as defenders against social breakdown, chaos, and evil, the Moral Majority
used campaign tactics to inform fellow Christians and get the vote out during the 1980
presidential election in which they voted overwhelmingly for Ronald Reagan. While the
Moral Majority dissolved in the late 1980s, it set a precedent of Evangelical Christian
political action that is still influential today.
The National Rifle Association (NRA)
The NRA was founded in 1871 as an organization for marksmanship enthusiasts. During
most of the 20th century, the NRA focused on hunting, conservation, and marksmanship.
For many the rampant crime of the 1970s required a stout defense of citizens’ Second
Amendment right to own and bear arms. In this climate, the NRA launched its first political
action in 1976, by using direct mail to support pro-gun candidates. This shift to aggressive
protection of the Second Amendment was characterized by political mobilization in which
coalitions with like-minded conservative politicians, mostly Republicans, were formed.
Today, the NRA is widely considered to be one of the most influential lobby organizations
in the country.
The Contract with America:
In 1994, then Speaker of the House Newt Gingrich, proposed a program of conservative
principles known as the Contract with America. In it Gingrich argued the federal
government was too large and was no longer responsive to the will of the American voter.
Federal programs (welfare) had taken away personal responsibility from families and
individuals. The contract sought to restore balance between government and its citizens.
It was essentially a promise by Republican candidates to the American people, stating
what they would do if elected.
The Rust Belt to the Sun Belt

The traditional heart of American industry - the Northeast & Midwest – the Rust Belt
witnessed steady economic decline during this period as industrial/manufacturing
jobs were moved to Mexico and overseas. In search of economic opportunity,
Americans began moving in large numbers to the Sun Belt – the South and
Southwest. Why?

Technologies overcame undesirable living conditions, which encouraged this
migration included: dams/availability of water in the Southwest, milder winters during
a time of rising oil prices, and air-conditioning.

Many of the new industries (technology, information systems, etc) were located in
the Sun Belt.

Spending on the military increased and many bases and military contractors were
located in the Sun Belt.

Many businesses were lured to the more conservative South where Right to Work
laws severely limited the power of labor unions and generally created a pro-business
climate.
Billy Graham
Beginning in 1947, Billy Graham began his evangelical Billy Graham Crusades of large
Christian revival meetings. Throughout the 1950s, Graham’s popularity increased –
especially due to his good will for humanity. Graham preached against communism,
apartheid, and frequently against segregation. His organization, the Billy Graham
Evangelistic Association, was funded by well-known conservative activists who worked
with Graham to craft a theologically and politically conservative message. Graham’s
magazine, Christianity Today, was widely respected and had one of the largest circulations
of any conservative publications. Graham is probably best remembered as a spiritual
advisor to all American presidents since Truman. He was especially close to Eisenhower
and Nixon.
Sandra Day O’Connor
Appointed by Ronald Reagan to the Supreme Court in 1981, O’Connor became the first
woman to serve on the nation’s highest court. Consistently voting with the court’s
conservative majority, Justice O’Connor pursued a narrow interpretation of the law and
generally followed the New Federalism approach favoring a transfer of power from the US
Government back to the states. She retired in 2006 after 25 years on the Supreme Court.
The Environmental Movement:
Rachel Carson- Silent Spring – detailed the dangers of chemical pesticides on
the environment; 1962 marks beginning of modern environmental moevemnt. Love Canal
Incident• Earth Day- April 1970 unofficial beginning of environmental movement.
• Environmental Protection Agency- created by Nixon, federal government
agency that sets and enforces pollution standards.
• Clean Air Act 1970- set emission standards for factories and autos.
• Clean Water Act 1972- restricted discharge of pollutants into lakes and rivers.
• Three Mile Island Incident- no new nuclear power facilities built since 1973 due
to fear and questions.
The Technological Revolution 1970’s, 1980’s 1990’s
• Integrated circuit- complete electronic circuit on a silicon chip.
• Microprocessors- new chips reduced the size, speed, and function of computers;
chip holds memory and computing functions.
• 1976- Apple Computer founded; Steven Jobs & Stephen Wozniak.
• 1977 Apple II introduced
• 1981- Macintosh introduced; on screen graphics, mouse, icons.
• Bill Gates founded Microsoft; 1985 introduced Windows.
• Internet and World Wide Web developed= growth of “dot com” businesses.
• 1953 – structure of DNA deciphered= law enforcement uses and genetic engineering
develop in 1980’s 1990’s.
George Bush Sr. (1988-1992)
Election: Bush was elected on a promise not to raise taxes (“read my lips, no new
taxes”) - he will break that promise while in office.
The Cold War Ends: Soviet leader
Mikhail Gorbachev initiates reforms: “perestroika”- to
restructure the Soviet economy (allows some private ownership of business), and
“glasnost”- (openness) allows more free speech, religion.
* Nov. 1989- East German Guards open Berlin Wall gate; days later the Berlin Wall is
torn down.
* May 1989- Tiananmen Square Incident- Chinese students held demonstrations for
democracy in Beijing; many people were killed & arrested as the Chinese army was
called in to crush the protests.
1990- Persian Gulf War- Saddam Hussein invaded Kuwait; UN forces led by the US
liberated Kuwait “Operation Desert Storm”
1991- Soviet leader Gorbachev announced the end of the Soviet Union.
1992-Present – President: William J. Clinton (1993-2001), George W. Bush (2001- 2008)
• 1992 election : William “Bill” Clinton (Democrat) v. Republican George Bush Sr. v.
H. Ross Perot (Reform Party)
• Bill Clinton first baby boomer elected president.
• 1993 Clinton proposed a budget to Congress that raised taxes-Republicans in
Congress refused to sign-compromise was reached= reduced budget deficits.
• 1997- 1st time in 27 years Clinton submitted a balanced budget to Congress.
• Family Medical Leave Act – gave workers 12 weeks per year of unpaid family
leave for birth of child, adoption, illness of a family member.
• Americorps- • 1993- European Union created; free trade zone that shares a common
bank and
currency (euro).
• Brady Bill passed- imposed a waiting period before people could buy handguns,
background check required for gun dealers to sale guns to individuals.
• 1994 Republican “Contract with America”- Newt Gingrich (Rep./ Ga.) program
proposed 10 changes: lower taxes, welfare reform, anticrime laws, balanced
budget etc.
• North American Free Trade Agreement (NAFTA) - US, Canada, and Mexico
formed a “free trade zone” (reduced or eliminated tariffs between these
countries) Critics worried that US industrial jobs would move to Mexico.
• Welfare Reform Act- limited people to no more than two consecutive years on
welfare & required them to work to get welfare benefits.
1996 Election: Bill Clinton v. Bob Dole – Clinton wins second term.
• Clinton Scandals: Whitewater Development & Monica Lewinski affair.
• Clinton impeached but not removed from office.
• Bosnian Crisis (Balkans Crisis)- 1991 a civil war broke out in former Yugoslav
republic of Bosnia; Orthodox Christian Serbs v. Catholic Croatians v. Bosnian
Muslims.
** Serbs began “ethnic cleansing” of Muslims; NATO led by US bombed the Serbs.
** 1996 Dayton Accords- peace plan to end Bosnian civil war.
• 1998 Kosovo (Serbian province): Albanians wanted Kosovo separate from
Bosnia & Serbian leader Slobodan Milosevic orders a crackdown on
Albanians= civil war= NATO led by US bombed Serbia= Serbia pulls its troops
out of Kosovo.
• Immigration Trends 1990’s—mostly Asian and Hispanic immigration.
2000 Presidential Election
• Al Gore (Democrat) v. George W. Bush (Republican) v. Ralph Nader (Green
Party)
• Controversial vote of 2000- Gore won 48.4% of popular vote/Bush won
47.9%. ; Neither candidate had 270 electoral votes to win presidency.
• Both men needed the 25 electoral votes of Florida= Florida vote was so
close Florida law required a recount of ballots.
• Gore asked for a hand recount in strong Democratic counties only;
machine count showed Bush in lead.
• “Hanging chads”-Florida ballots that had not been fully punched.
• Bush v. Gore – Supreme Court ruled hand counts to cease= Bush declared
winner.
George W. Bush 2000-2008
• Priority was to cut taxes to jump start the economy (Congress passed $1.35 trillion tax
cut phased in over 10 years).
• No Child Left Behind Act (NCLB) - proposed standardized testing in reading and math
grades 3-8 in all states; all groups of students must show improvement. ** Critics argue
that it emphasizes testing too much and penalizes schools who
otherwise meet most goals.
• Bush is in favor of developing Strategic Defense (missiles systems that can shoot down
enemy nuclear missiles directed toward the US).
• September 11, 2001- terrorists crashed passenger planes into the World Trade Center
and Pentagon; Osama Bin Laden (al-Qaeda).
• The War on Terrorism: Congress voted to give use of force to fight terrorists & $40
billion to rescue, repair, and security measures.
a. Oct. 2001 US launched first military operation of war on terror- Afghanistan to attack
Taliban and al-Qaeda bases there.
b. Sept. 24, 2001- Bush issued executive order freezing all financial assets of suspected
organizations & individuals involved in terrorism.
c. Office of Homeland Security created
d. 2001 Patriot Act- permitted secret government searches of suspected terrorists and
supporters with one nationwide search warrant; easier to wiretap and track internet
communications.
African American
The African-American church had always played an important organizational role in the
black community. However, the most prominent political organization in the AfricanAmerican civil rights movement was the National Association for the Advancement of
Colored People or NAACP. The NAACP focused its efforts on challenging segregation
and championing civil rights in the federal courts. Thurgood Marshall led the NAACP team
that won the Brown v. Board of Ed case that sparked the modern civil rights movement.
Chicano Movement
The two most prominent Chicano civil rights organizations were the G.I. Forum and the
United Farm Workers. Begun as an organization to address the plight of Hispanic veterans
after WWII, Hector P. Garcia expanded the mission of the G.I. Forum to include traditional
civil rights issues: voting rights & discrimination. The United Farm Workers Union was led
by farm worker turned labor/civil rights leader Cesar Chavez. Chavez started a group that
supported farm workers’ rights and demanded increased wages and better working
conditions. Chavez and the UFW organized nation-wide consumer boycotts of farm
products, while he personally used hunger strikes to persuade state legislators to help farm
workers.
American Indian Movement
In 1953, the Federal Government transferred its responsibility for those American Indians
still living on reservations to state governments. Lacking sufficient funds, many states
were unable or unwilling to provide the same level of services previously provided by the
Federal Government. While President Nixon announced that the government would live up
to its obligations, many Indians felt that they were being left behind. Under the slogan
“Red Power,” they formed the American Indian Movement (AIM) to mobilize public opinion
in their favor. As a priority, AIM sought greater respect for their heritage and introduced
the term “Native American”. They dramatized the plight of Native Americans by
temporarily occupying government monuments on Alcatraz Island and at Wounded Knee,
South Dakota.
Women's Movement
While the women’s movement can trace its legacy back to the Seneca Falls Convention in
1848, important roles in both the abolitionist and later progressive movements, which
culminated in the passage of the 19th Amendment; many women were dissatisfied with
their roles as housewives and sought freedom to express themselves in careers and work.
In 1963, Betty Friedan wrote The Feminine Mystique, which challenged the belief that
education suburban housewives were their traditional lives as mothers and housewives.
Freidan wrote that women were as capable as men and should b permitted to compete for
the same jobs. In 1966, Friedan helped form the National Organization for Women (NOW),
which became a leading voice for the Women’s movement. After 50 years of languishing
in Congress, the Equal Rights Amendment, which would provide for equality of rights under
the law shall not be denied or abridged on account of sex, was passed in 1972.
Unfortunately, not enough states ratified the ERA amendment to make it a Constitutional
amendment and it has been in political limbo ever since.
Cesar Chavez
Cesar Chavez was a Mexican American labor activist and leader of the United Farm
Workers. During the 20th century he was a leading voice for migrant farm workers (people
who move from place to place in order to find work). His tireless leadership focused
national attention on these laborers' terrible working conditions, which eventually led to
improvements.
Hector P. Garcia
Hispanic doctor, Dr. Hector P. García was infuriated by the unfair treatment of Mexican
Americans that he saw in Texas when he returned from WWII, so he organized the
American G.I. Forum in 1948. The group’s original purpose was to improve veterans’
benefits and their medical care. Before long, the organization was also dealing with such
issues as housing, education and vocational training, the poll tax, voter registration
hospitalization, and employment.
Betty Friedan
Betty Friedan was an American writer, activist, and feminist. A leading figure in the
Women's Movement in the United States, her 1963 book The Feminine Mystique is often
credited with sparking the "second wave" of American feminism in the 20th century. In
1966, Friedan founded and was elected the first president of the National Organization for
Women, which aimed to bring women "into the mainstream of American society now [in]
fully equal partnership with men".
Mendez v. Westminster
In 1945, some places in California sent Mexican-American children to separate public
schools. Several of these Mexican-American parents challenged this practice in the U.S.
district court. The district court ruled that this practice violated the 14th Amendment, which
guarantees citizens the right to the “equal protection” of the laws. Westminister School
District appealed to the U.S. Court of Appeals. The latter concluded that the case did not
involve a constitutional question. California law at the time required the segregation of
Chinese or Japanese children, but did not “include segregation of school children because
of their Mexican blood.” The court held that separation with a race was not permitted if not
required by a specific state law. The court thus did not need to rule on the 14th
Amendment. Later that year, California repealed its school segregation laws.
Hernandez v. Texas
Pete Hernandez was convicted of murder in a Texas court by an all-white “Anglo” jury. No
Mexican-American had served on a jury in the county where Hernandez was tried for more
than 25 years. Hernandez appealed to the U.S. Supreme Court, claiming his right to
“equal protection of the law” under the 14th Amendment had been violated. The State of
Texas argued that Mexican-Americans where “white” and not entitled to any special
protection. The Supreme Court ruled that Mexican-Americans formed a separate class
that was entitled to protection. Hernandez had “the right to be tried by juries from which
members of his class are not excluded.”
Delgado v. Bastrop I.S.D.
After the Mendez ruling in California in 1948, the Texas Attorney General decided that the
segregation of Mexican-American children in schools was illegal. Delgado and others sued
Bastrop ISD, claiming that the separation of Mexican-American children from other children
of the same race without a specific state law was a violation. The U.S. District Court
agreed, and ordered the school district to stop the segregation of Mexican-American
children.
Edgewood I.S.D. v. Kirby
In 1971, the U.S. Supreme Court ruled that children do not have a fundamental right under
the Constitution to an education. Civil rights activists then filed lawsuits in various state
courts, based on the provisions of state constitutions. A Mexican-American legal group
(MALDEF) filed suit against William Kirby, the Texas Education Commissioner, on behalf
of Edgewood ISD, a poor district with a large Hispanic population. The school district
claimed that the state method for funding public schools resulted in major differences
between the funds available for students in rich and poor districts. This violated the Texas
Constitution, which promised a “fair and efficient” public school system. The Texas
Supreme Court agreed with the school district and ordered the state to create a more
equitable system of public school finance, which called for a transfer of money from
property-wealthy school districts to poor ones to equalize the amount each district spent to
educate students. The press nicknamed this redistribution scheme, and similar proposals
suggested later, the "Robin Hood" plan.
Sweatt v. Painter
In 1950, the NAACP won an important case involving the right of Heman Sweatt, an
African-American, to attend the University of Texas Law School. Texas argued that its
constitution prohibited integrated education. UT even created a separate law school for
blacks, just to keep Sweatt out. The U.S. Supreme Court ruled that this separate school
failed to qualify as “separate but equal” since differences in its facilities, such as the
isolation of its students from future lawyers being trained in Austin, with whom its students
would later interact.
Environmental Protection Agency (EPA)
The 1962 publication of Rachel Carson’s Silent Spring provided an environmental focus for
a growing number of Americans during the 1960s. The mounting concern about
environmental degradation – highlighted by the use of the defoliant Agent Orange in
Vietnam – put pressure on the US Government to do something. In 1970, President Nixon
signed a law that created the Environmental Protection Agency (EPA) to protect the
environment. The EPA sets air and water pollution s for cities, and engages in monitoring
and enforcement activities. New construction projects must pass detailed environmental
impact reviews before being approved. Private citizens can file lawsuits against polluters
under the EPA.
Endangered Species Act
In 1973, President Nixon signed the Endangered Species Act, which requires the Fish and
Wildlife Service to list species of plants and animals that are threatened with extinction,
and then take steps to protect them.
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