Ronald Reagan & the Conservative Shift (1981–1989)

Setting the Stage — America in 1980

-Economy struggling after years of inflation and slow growth

-Energy shortages and gas lines still fresh in memory

-Iran Hostage Crisis damaged confidence in U.S. leadership

-Many Americans felt the country was in decline

Election of Ronald Reagan (1980)

-Former Hollywood actor and California governor

-Ran as a conservative Republican

-Defeated President Jimmy Carter in a landslide

-Promised optimism, strength, and a return to American confidence

Reagan’s Core Beliefs

-Believed government had grown too large since the New Deal

-Argued high taxes discouraged work and investment

-Supported strong national defense

-Emphasized individual responsibility and patriotis

The Conservative Movement

-Reaction to liberal policies of the 1960s–1970s

-Supported free markets and less government regulation

-Backed by religious conservatives and business groups

-Reagan became the face of modern conservatism

Reaganomics (Supply-Side Economics)

-Economic theory focused on increasing production

-Belief that tax cuts would encourage investment and hiring

-Expected economic growth would benefit everyone

-Critics called it “trickle-down economics”

Key Parts of Reaganomics

-Major tax cuts, especially for higher income brackets

-Reduced spending on welfare and social programs

-Deregulation of industries like banking and airlines

-Large increase in military spending

Results of Reaganomics

-Inflation dropped significantly by mid-1980s

-Economy experienced long-term growth

-Unemployment fell after an early recession

-Federal deficits and national debt increased

Critics of Reaganomics

-Wealth gap between rich and poor widened

-Social programs cuts affected low-income Americans

-National debt tripled during Reagan’s presidency

-Critics argued benefits favored the wealthy

Reagan and the Cold War

-Took a tougher stance than recent presidents

-Rejected détente early in his presidency

-Framed Cold War as a moral struggle

-Called the Soviet Union an “evil empire”

Military Buildup

-Increased defense spending dramatically

-Expanded nuclear weapons stockpile

-Proposed Strategic Defense Initiative (SDI)

-Sought to pressure Soviet economy and leadership

Strategic Defense Initiative (SDI)

-Missile defense system using space-based technology

-Nicknamed “Star Wars” by critics

-Never fully developed

-Increased pressure on Soviet resources

Shift Toward Diplomacy

-Cold War tensions began to ease mid-1980s

-New Soviet leader Mikhail Gorbachev

-Reagan became more willing to negotiate

-Emphasized arms reduction and cooperation

Reagan & Gorbachev

-Multiple summits held between leaders

-Built personal relationship and trust

-Opened communication between superpowers

-Reduced risk of nuclear conflict

Arms Reduction Treaties

-INF Treaty (1987) eliminated certain nuclear weapons

-First treaty to reduce, not just limit, weapons

-Symbolized end of intense Cold War hostility

-Major diplomatic achievement

Reagan and the End of the Cold War

-Combined military pressure with diplomacy

-Encouraged reforms within the Soviet Union

-Cold War officially ended in early 1990s

-Historians debate Reagan’s role

Iran-Contra Affair

-Secret sale of weapons to Iran

-Iran considered an enemy of the U.S.

-Profits used to support Contra rebels in Nicaragua

-Violated congressional restrictions

Why Iran-Contra Was a Scandal

-Bypassed Congress and U.S. law

-Raised concerns about executive power

-Echoed Watergate-era fears

-Damaged trust in Reagan administration

Reagan’s Response to Iran-Contra

-Denied knowledge of key details

-Took responsibility as president

-Several officials resigned or were convicted

-Reagan remained personally popular

Reagan’s Legacy

-Shifted U.S. politics toward conservatism

-Changed expectations of government size

-Strengthened U.S. confidence abroad

-Left long-lasting political influence

Big Picture Takeaways

-Reagan represented a major turning point

-Moved away from post-Vietnam caution

-Balanced power with diplomacy

-Continued debates over government power